Changes to pension system: What do MPs say?

Parliamentarians from both sides of the divide are split on the issue regarding their pension, which has become a hot topic in recent days.

Malaysiakini met several MPs at the Dewan Rakyat to ask whether they were agreeable to receiving only one pension or to have their pensions replaced with contributions to the Employees Provident Fund (EPF), or maintain the status quo.

On average, MPs who have served for more than two terms chose the pension system, which has been in effect for decades, to be retained.

Kinabatangan MP Bung Moktar Radin said this is because elected representatives “deserve” what they get as their job is not easy.

“An elected representative’s service does not follow hours, day or night. When the rakyat needs service, they (representatives) have to serve, and this job is not like a teacher’s.

“Teachers work according to set hours and then they are free to do their own activities,” Bung told Malaysiakini, choosing to receive multiple pensions from service at the state and federal level, and other government positions.

According to Bung, the pension scheme would also ensure the welfare of a representative is taken care of, long after the latter’s passing.

Bung, however, stressed that he has no issues if the government decides to amend the pension scheme in the future.

Consider other benefits

Ampang MP Rodziah Ismail said the MP pension issue needs to be looked at from various angles.

“Some of us (elected representatives) used to be highly paid professionals before coming into politics. But we sacrifice and leave behind lucrative paying jobs to serve the people and the country - that’s one perspective.

“To me, the (pension scheme) is enough but there are MPs who came to their position after many stages. He or she probably started as an assemblyperson, before becoming an exco member, and then an MP, which would make his or her stint serving the people very long.

“In such cases, the overlapping pensions could be reviewed,” she added.

READ MORE: How much pension can MPs receive?

Rodziah stressed that an MP’s job was not as easy as it looked.

“Don’t only look at our time in Parliament. Also, see the problems we face and the time we have to spend (for the people). Sometimes there are no days off. Especially for a woman MP like me, I have to face various challenges.”

Kubang Kerian MP Tuan Ibrahim Tuan Man said he is in favour of only one pension, although he is eligible to receive several for his service at the state and federal level, and other government positions.

“Several civil servants are eligible to receive two to three pensions, but I personally prefer to receive one.

“I feel this matter has to be adjusted. For instance, choose the highest pension among the multiple streams,” the PAS deputy president told Malaysiakini.

In reviewing politicians’ pensions, the government could also consider other benefits, Tuan Ibrahim said.

“Usually for someone who earns big money, their expenses are also big. When the amount (of income) is abruptly cut down, there could be a risk of issues concerning the cost of living.

“For instance, someone earning RM10,000 a month and planning to spend according to that amount could face problems when the income is cut down to RM2,000 or RM3,000 a month,” he added.

Choose what’s right

Younger MPs Malaysiakini spoke to seemed to agree to replace pension with EPF.

Muar MP Syed Saddiq Syed Abdul Rahman said what matters is doing what is right, and not what one likes, in this issue.

As a two-term MP and former youth and sports minister, Syed Saddiq agreed that he only qualifies for EPF.

“I come from a family of civil servants and I saw how my mother and her colleagues dedicated 40 years of their lives before qualifying for a pension.

“This is not right, and also morally wrong when someone (a politician) is elected and enjoys a lifetime pension worth tens of thousands of ringgit. Not only that but also remuneration from positions in GLCs (government-linked companies) and other agencies.”

The former Muda president said it is not right for a politician to be eligible for a pension as soon as he or she gets elected as an MP, whereas teachers, police officers, soldiers, and other civil servants only qualify for a fraction of the pension after serving decades in the civil service.

READ MORE: Allowances and perks: How much do MPs, speakers and deputy speakers get?

Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal also chose EPF over pension.

As someone who worked for almost 15 years in a GLC, the Bersatu Youth chief vouched for EPF as a good system.

“(If EPF is implemented for MPs) maybe the government can increase its share (of contribution) because contrary to popular opinion, not all MPs are wealthy.

“A lot of MPs leave their main jobs, and sacrifice their own wealth to serve the people.

“Especially from an opposition lawmaker’s perspective, I can understand why a lot of us may agree for the pension system to be retained,” he said.

Help the country

For Batu MP P Prabakaran, the country’s interests should come first before self-interest.

As such, he is all for pension to be replaced with EPF, given the country’s financial status.

“According to a study, the funds needed to pay pension using taxpayers money will increase three to fourfold in the next 20 years.

“Thus, I choose EPF as it is more sustainable and reliable, and the government does not need to spend a lot of taxpayers’ money.

“The money can instead be used for other high-return investments, which can then be channelled back to the contributors,” he said.

Prabakaran added that he also chose EPF because he became an MP to help the rakyat and the country, not himself.

Kini News Lab recently ran a two-part series which examined MP pensions and allowances.

The article was accompanied by a poll asking readers if they agree that MP pensions should be replaced with EPF contributions.

A total of 96 percent of 8,036 votes were in the affirmative, while more than 300 comments were left by readers sharing their views on the issue.

Prime Minister Anwar Ibrahim previously called for politicians holding several portfolios or positions in the government to be “morally responsible” by opting for only one pension scheme.

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