Set up Old Age Social Protection Scheme to help retirees, MTUC says

A MALAYSIAN Trades Union Congress (MTUC) leader urged the Government to establish an Old Age Social Protection Scheme to help retirees weather out their twilight years comfortably.

“We would propose that a nominal percentage from taxes collected be set aside into a pension fund or, alternatively, channelled to the Employees Provident Fund (EPF) whereof an equitable pension payment scheme be devised to provide for retirees.

“Until such proactive measures are in place, we may witness an ageing population who would neither have sufficient EPF savings post retirement nor an old age social security fund to provide them with financial sustenance,” its Penang chapter secretary K Veeriah said.

On Oct 3, New Straits Times reported EPF chief strategy officer Nurhisham Hussein saying that there is 60% decline in median savings among its 5.05 million contributors, particularly among the B40.

“This is the first time in our history. There were instances where some members wished to make withdrawals under i-Citra, but could not do so as they had depleted their savings.

“Almost half of EPF members have less than RM10,000. If we were to base on the minimum target of RM240,000 savings that EPF members should have upon reaching the age of 55, only 3% of us can afford retirement and sustain it with the savings,” Nurhisham was reported saying.

UMNO deputy president Datuk Seri Mohamad Hasan, on that note, also lamented that Budget 2022 did not address the dire situation awaiting retirees recently.

“I’m concerned that it did not contain measures on how to restore the people savings in EPF. Bear in mind that 46% of the contributors, under the age of 55, have less than RM10,000 in their accounts.

“What will happen to these people when they retire? If we leave it be, it will become a national problem which will eventually affect the Government in the long run,” he was reported saying.

Echoing the duo’s sentiments, Veeriah said that the authorities must admit that the various withdrawals under the i-Sinar, i-Lestari and i-Citra programmes are partly to be blamed for the situation working Malaysians are in right now.

“With about RM70 bil of EPF fund used to mitigate the effects of COVID-19, we can safely say it has partly contributed to the situation.

“In my view, the Government should have provided sustained financial assistance to the people during the pandemic crisis. Instead, they allocated piecemeal financial handouts that were grossly inadequate to meet financial obligations of those who either lost their jobs or had their income slashed,” he stated.

Retirees’ lives at risk!

Veeriah was also upset that the Government had enticed people to dip into their own EPF savings to weather the crisis, leaving about 97% of its contributors having no privilege to retiree upon attaining 60 years of age.

“As said by Nurhisham, retirees may need to continue working beyond their retirement age to support themselves.

“As our nation is fast becoming an ageing population, the question that needs to be postulated is the consequences of working beyond the retirement age,” Veeriah quipped.

The veteran unionist also warned the Government that working long hours is becoming a problem globally, with many of them losing their lives due to work related deaths.

“This is based on studies conducted by the World Health Organization (WHO) and the International Labour Organisation (ILO).

“Working long hours, and by extension working years after retirement age would lead to a deterioration of both physical and mental health of senior citizens, what more the possibility of death.” Veeriah concluded. – Nov 1, 2021

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