Higher Pension Gratuity For Civil Servants Boarded Out Medically

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The government has raised the pension and gratuity of civil servants who leave the service for health reasons.PETALING JAYA: Civil servants who are forced to quit early on health grounds will now have reasons to cheer as the government has set a much higher minimum number of years’ service to calculate their pension and gratuity.
In a circular released a week ago, the Public Service Department (PSD) said the government has agreed to raise the minimum calculation for pension and gratuity which are currently tied only to the actual number of years served.
“Under the existing regulations, it is worked out according to the actual number of years a civil servant has worked but with a minimum of one-fifth of the pension based on his last drawn basic pay and not exceeding three-fifths,” said PSD director-general Mohd Khairul Adib Abd Rahman.
He said the new terms, which will have a major impact on their pension and gratuity, will be backdated to Jan 1, 2018.
According to a chart in the circular, those boarded out medically with a total service of less than 120 months will have their pension and gratuity calculated on a minimum of 240 months’ service.
For those who have served between 120 and 240 months, theirs will include an additional 120 months of service for both payouts.

For others in service between 241 to 360 months before they are asked to opt out for health reasons, both formulas will be based on the maximum of 360 months.
A senior government officer in clarifying this said this will benefit especially those who have no choice but to leave because of critical illnesses that stop them from being able to work.
“For example, if an employee earns a basic of RM5,000 and is boarded out after five years, his pension will be based on 20 years. Which means he will now get RM2,000 a month.
“Under the old scheme, he would have been only eligible to receive a monthly pension of RM400,” he said.
Khairul said those who had in the past been medically pensioned off but had rejoined the service will not be eligible for these benefits. - FMT

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