Saturday, March 13, 2010

Governmet to introduce new pension funds in 2011


The government will introduce the old-age and self-employed pension schemes, possibly by the middle of next year, under the government’s caring concept, Human Resource Minister Datuk Dr S. Subramaniam (picture) said today.

He said the Social Security Organisation (Sosco) has been tasked to conduct actuarial studies on the two new schemes before their implementation.

“We are already in the process of introducing the Retrenchment Fund for private sector workers,” he told reporters after presenting certificates to 80 women who had completed a skills training course conducted by the ministry, here.

On the proposed Old Age Pension Fund, Dr Subramaniam said Sosco will have to determine the minimum age and period of payment for its contributors.

As for the special social security scheme for the self-employed who have not been contributing to Socso, he said a thorough study needed to be conducted as it involved issues such as working hours and place.

“Many of these self-employed people work long hours and do not work at one place. So, we have to study it carefully,” he said.

Dr Subramaniam said his ministry is now in the process of drafting a paper on the two new pension schemes to be submitted to the Cabinet for approval.

“The schemes must be sustainable. As such, a lot of processes will be involved, including allocating the funds and amending the necessary acts,” he said.

He said the government’s intention is to ensure that private sector workers enjoyed pension benefits similar to their counterparts in the civil service.

Dr Subramaniam also said that he would discuss with Prime Minister and Finance Minister Datuk Seri Najib Tun Razak on the allocation of additional funds for his ministry to start off new programmes for women this year. — Bernama

No comments: