Pensioners slam EPF move to cut contribution
KUALA LUMPUR: Civil service pensioners who join the private sector after retiring at the age of 55 should also enjoy the employers’ contribution of 12% to the EPF because they are experienced professionals, said the Malaysian Pensioners Association.
Commenting on proposed changes under the EPF (Amendment) Act 2007, which includes a 6% contribution by employers for workers aged above 55, association president Tan Sri Abdullah Ayob said: “We do not understand the rationale behind such a proposal and we have to study why such a low percentage was proposed.”
On Wednesday, EPF’s deputy chief executive officer Rusma Ibrahim said that once the Bill was approved, employers must contribute a mandatory 6% of salaries for workers aged 55 and above while these workers would contribute 5.5%.
Presently, those below 55 contribute 11% while their employers pay 12%.
Rusma said that under the existing rules, it was not compulsory for employers to make any contributions for staff aged 55, although many employers did so at their own discretion.
MTUC president Syed Shahir Syed Mohd urged legislators to be fair and humane when drafting Bills that affect older people.
“We cannot understand why there should be any kind of discrimination in so far as the contribution for the older people is concerned.
“This is against our proposal to the Government to increase the retirement age to 60 years,” he said.
Under the proposed amendments, contributors would also be able to top up the EPF savings for their spouses or parents with at least a RM50 monthly contribution from their salaries.
It would be compulsory for working members to contribute until they reach 75 but after that they would not receive dividends.
Commenting on proposed changes under the EPF (Amendment) Act 2007, which includes a 6% contribution by employers for workers aged above 55, association president Tan Sri Abdullah Ayob said: “We do not understand the rationale behind such a proposal and we have to study why such a low percentage was proposed.”
On Wednesday, EPF’s deputy chief executive officer Rusma Ibrahim said that once the Bill was approved, employers must contribute a mandatory 6% of salaries for workers aged 55 and above while these workers would contribute 5.5%.
Presently, those below 55 contribute 11% while their employers pay 12%.
Rusma said that under the existing rules, it was not compulsory for employers to make any contributions for staff aged 55, although many employers did so at their own discretion.
MTUC president Syed Shahir Syed Mohd urged legislators to be fair and humane when drafting Bills that affect older people.
“We cannot understand why there should be any kind of discrimination in so far as the contribution for the older people is concerned.
“This is against our proposal to the Government to increase the retirement age to 60 years,” he said.
Under the proposed amendments, contributors would also be able to top up the EPF savings for their spouses or parents with at least a RM50 monthly contribution from their salaries.
It would be compulsory for working members to contribute until they reach 75 but after that they would not receive dividends.
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