JANUARY 29 — Muar Member of Parliament (MP) Syed Saddiq Syed Abdul Rahman on Friday (Jan 26) called on the government to remove the pensions of MPs and to raise civil servants’ salaries first before phasing out the pension scheme for newly appointed civil servants.

Calling the federal government’s move as inappropriate as prospective civil servants would not receive their pensions while politicians would still receive tiered pensions, Syed Saddiq said:

“Civil servants have to serve up to 50 to 60 years to be entitled for their pension, while elected representatives are eligible after serving a five-year term.

“This is not including the elected representatives’ appointments to government-linked companies' bonuses.”

The former youth and sports minister was responding to the planned decision by the government to replace the current pension schemes for all new civil servants.

Lest it be forgotten, pension of MPs is provided by law, namely the Members of Parliament (Remuneration) Act 1980 (Act 237), which repealed the Members of the Administration and Members of Parliament (Pensions and Gratuities) Act 1971 (Act 23).

Section 8 of both Acts state that an MP “shall be entitled to such pension, gratuity and other benefits as are prescribed in the First Schedule”. The entitlement extends to a Member of the Administration (a person holding office as Minister, Deputy Minister, Parliamentary Secretary but does not include Political Secretary), the President and Deputy President of the Senate and the Speaker and Deputy Speaker of the House of Representatives.

The First Schedule details the entitlement of pension, gratuity and other benefits to our elected representatives.

All it takes to remove the pensions of MPs is to amend Act 237.

Take the cue from our neighbour, Singapore. After the Republic’s Parliament endorsed the Government White Paper on “Salaries for a Capable and Committed Government” to remove pensions for office holders and MPs, then Deputy Prime Minister Teo Chee Hean who was also the Minister in Charge of the Civil Service, introduced into Parliament the Parliamentary Pensions (Abolition) Bill.

The Bill sought to put into effect the recommendation in the White Paper. It was passed into law on September 10, 2012.

The Parliamentary Pensions (Abolition) Act 2012 (Act 12 of 2012) is an Act of Parliament to provide that service as MP and as holders of ministerial and other offices after May 20, 2011 cease to be reckonable for the grant of pensions and gratuities under the Parliamentary Pensions Act 1978, to provide for the eventual repeal of that Act and to make related and consequential amendments to other written laws.

Singapore MPs today do not receive pension, and MPs elected before 1995 who were eligible for a pension had their pensions frozen as of May 20, 2011. They would receive the frozen pension once they step down as MP.

If you are interested to know how much Singapore MPs get paid, you can read it here.

As for our MPs, Syed Saddiq may wish to consider introducing a Private Member’s Bill to amend Act 237 by repealing section 8. Take the cue from Singapore.

What say you, Syed Saddiq?

https://www.malaymail.com/news/what-you-think/2024/01/29/what-it-takes-to-remove-pension-of-mps-hafiz-hassan/115243