SEREMBAN: The government's proposal to abolish the pension scheme for new and permanent civil servants is feared to result in many civil servants moving to the private sector.
The Malaysian Muslim Teachers Association (i-Guru) president Mohd Azizee Hassan said the consequence of it would have an impact and harm the public sector.
"If the government wants to abolish this pension scheme, it is feared that it will result in many civil servants moving to the private sector, thereby harming the public sector.
"This is because most civil servants work in the education and health sectors which are important in the country.
"On behalf of the teachers' union, we urge this matter to be refined through engagement sessions as well as clear explanations, especially the form of the proposed new scheme," he said in a statement today.
On Wednesday, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said that the cabinet had agreed with the proposed new pension scheme for the civil service.
Under this method, new hires in the civil service will contribute to retirement schemes like the Employee Provident Fund (EPF).
Zahid said the announcement of specific dates for the implementation would be made by the Chief Secretary Tan Sri Mohd Zuki Ali.
Azizee said it is hoped that the government would be able to refine the proposal by getting the views of all parties.
He added that the government needed to offer a better service scheme and guaranteed the future of civil servants if it wanted to change the scheme.
"We (i-Guru) hope for a more beneficial scheme for civil servants and if the EPF scheme is to be established, the existing salary scheme needs to be increased for future savings benefits," he said.
