Contractual System To Replace Permanent Pension Schemes For Public Service

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Existing civil servants may be given the option to switch to the new contractual scheme.PUTRAJAYA: From next year onwards, new appointments in the public service will no longer be made under the permanent and pension schemes which will be replaced with an improved contractual scheme, says Public Service director-general Borhan Dolah
He said the move was decided at a special public service reform committee meeting in October 2018 that wanted the service to be minimised in phases and based on need. It is also aimed at reducing the burden of pensions which is now reaching RM28 billion
Speaking to reporters after opening the Conference on Human Resource Management in the Public Sector 2019 here yesterday, Borhan said the new contractual scheme, which is being studied, would offer better pay, welfare and protection
“Contractual appointments may not enjoy the benefits of the existing permanent and pension schemes such as housing and car loans, but these benefits may be translated into higher allowances,” he said
Borhan said contractual appointments would also be more dynamic and tailored to Generation Y, and would give them the option to easily leave the public service after having served for a certain period
Borhan said the new scheme will also be subject to the Public Service Act which protects the interests of civil servants, permanent or contractual, to ensure that their services are not easily terminated if no wrongdoing is found
“So, no one can be appointed on a contractual basis today and terminated easily tomorrow,” he said
He said existing civil servants might be given the option to switch to the new contractual scheme
Borhan said the targeted savings under the new scheme are RM5 billion a year
At a town hall session in conjunction with the conference, he also spoke of a plan to merge the Public Service Department (PSD) and the Public Service Commission
When asked if the PSD would allow those in the corporate and private sectors to hold high positions in the public sector, he said they would be scrutinised to ensure that they meet the job requirements. - FMT

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