KUALA LUMPUR: The extension of the mandatory retirement age can help civil servants increase their retirement savings, besides making it easier for them to pay off debts and cover living expenses after retirement.
The move is also in line with a global trend that has seen many countries implement similar policies, according to two civil servant associations.
Putrajaya Indian Civil Servants Association (IMAIYAM) president Dr Sathiskumar K. Muthusamy said most civil servants only make financial commitments such as house purchases and personal loans during mid-career.
“As a result, they are unable to pay off their housing and personal debts by the time they retire, while their pensions are not sufficient to cover these commitments and other costs such as their children’s education and living expenses.
“So this extension (of the retirement age) will provide some relief to civil servants to cover their living costs and commitment debts, as well as reduce the number of civil servants who are trapped in debt after retirement,” he told Bernama.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling the 13th Malaysia Plan (13MP) at Dewan Rakyat on Thursday, announced that the mandatory retirement age limit would be reviewed, in line with Malaysia’s transition to an aging nation.
Currently, mandatory retirement for civil servants is set at 60 years old and it is also the minimum retirement age for private sector workers under the Minimum Retirement Age Act 2012.
Dr Sathiskumar suggested that the implementation of the policy be made flexibly since not all sectors are suitable for the retirement age of 65 years.
“Critical sectors such as medicine and education can be considered since a medical consultant with extensive experience can still function perfectly in treating patients.
“In addition, the performance and health of the civil servants involved need to be monitored through certain mechanisms to ensure that the quality of service is maintained and productivity is not affected,” he said.
National Union of Teaching Professions (NUTP) president Aminuddin Awang sees Malaysia as one of the countries with the lowest retirement age compared to Singapore and the Philippines.
“The study is very appropriate based on current developments but it is necessary to understand that this retirement age will be offered on a voluntary basis, the government will not force everyone to accept it. That is the perception that needs to be corrected first,” he said.
Amiruddin admitted that in the short term, the policy may affect the opportunities for promotion and new recruitment of civil servants, but the effect will not be significant in the long term.
“In the short term, there may be an impact on new recruitment or promotions. However, we must give those who are interested and have extensive experience the opportunity to continue serving as long as they are able,” he said.
He said NUTP would propose to the government to establish a health screening and performance evaluation system for civil servants to ensure that only those who are fit can continue their service.
– BERNAMA
© New Straits Times Press (M) Bhd
