Reforming The Pension System In The Public Sector
Currently, there is a significant discussion surrounding the reform of the pension system in the public sector. It is believed that the government is planning to replace permanent appointments with contractual positions. However, the Public Service Department (JPA) has stated that these contractual appointments are only temporary.
Contractual Appointments: Temporary or Permanent?
These contractual appointments will continue until the government announces a new salary scheme for public sector employees, as previously announced by PMX. According to an article published on the DH online portal on February 15, 2023, government expenditure on pensions is increasing. This is an economic reality that we must face.
Public sector employees are also demanding salary increases. PMX has agreed to raise their salaries and has announced that a new salary scheme will be announced at the end of this year. Therefore, this contractual system is temporary and will be replaced with permanent appointments once the new salary scheme is announced.
Pension System: Salary Increase with Conditions
However, the government will not grant these salary increases for free. They expect something in return. If public sector employees want a salary increase, they have to “sacrifice” something – in this case, the pension system. For those who were already public sector employees, their pension system will remain intact. However, those appointed after the announcement of the new salary scheme, will not have a pension and will have to make contributions to the Employees Provident Fund (EPF).
As mentioned earlier, there are three issues that the government cannot evade, and one of them is the reform of the pension system. We may have assumed that the government would wait a few years before implementing this reform, but we did not anticipate that they would do it this quickly.
Pension For Members Of Parliament: Setting A Good Example
If the government withdraws the pension system for public sector employees, it should also set a good example by removing pensions for Members of Parliament. If this happens, the public and public sector employees will have more confidence in the government’s efforts.
However, we need to be fair and acknowledge that the work of Members of Parliament and State Assembly members is highly demanding. Therefore, they may be exempted from the pension system, but the government should implement a similar approach as they did for public sector employees. They could potentially increase the salaries of Members of Parliament, but at the same time, they would no longer receive pensions and would need to make contributions to the Employees Provident Fund (EPF).
Reforming the pension system is an unpopular but crucial step to ensure the long-term financial stability of the government. Despite facing obstacles and challenges, this measure is essential to ensure that our pension system is fair and sustainable for everyone.
