No pensions for new state civil servants

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State Secretary Datuk Amar Mohamad Abu Bakar Marzuki. Photo: Ghazali Bujang

KUCHING: All new hires for the state civil service will be recruited under the Contribution-Based-Position (JBC) scheme from this year.

This means they will be contributing to the Employees Provident Fund (EPF) retirement scheme and will not receive monthly pension from the government after retiring.

State Secretary Datuk Amar Mohamad Abu Bakar Marzuki said those recruited under JBC will enjoy permanent positions as well as perks and benefits, similar to those under the traditional pension scheme, such as medical and housing benefits.

He described the strategic move as a ‘new way of doing things’ which aimed at modernising the Sarawak civil service.

JBC, he said, provides greater flexibility for civil servants who wish to pursue their career elsewhere and also encourages more young and professional individuals to serve in the Sarawak government.

“If we look at the pension scheme under the Public Service Department (JPA), civil servants would not receive anything if they want to leave the civil service before their retirement age.

“Sometimes this (scheme) puts them in a difficult situation, especially when they have better offers from the corporate sector.

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“They need to sacrifice their pension scheme if they wish to move to the corporate sector for better career progression.” 

Therefore, he said, Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has instructed all new recruits to be employed under JBC, which will attract more young talents as they are free to go (leave the civil service) anytime.

Abu Bakar explained that it is the same if one day, they wish to return to serve the state, they can be absorbed back through JBC.

He said this is one of the focuses in the civil service now in order to stay relevant in the ever changing world, especially with the new generations nowadays, where they like to shift careers, and experience working in different companies, industries or environments.

“We need to admit that this is the trend now, where young people would not want to stay or work in the same place for years until they retire. We need to do things that fit the current situation instead of what was implemented decades ago.

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“I believe the JBC scheme will attract a lot of young talents from various races and backgrounds to join the state civil service,” he said

He said this when receiving a courtesy call from Suara Sarawak and New Sarawak Tribune, led by its Chief Executive Officer (CEO) Datuk Dr Jeniri Amir, New Sarawak Tribune Editor-in-Chief Aden Nagrace, Executive Editor Rohana Wahed, Senior Manager Corporate Business Division Dorge Rajah, at Wisma Bapa here Tuesday.

Abu Bakar said in fact, JBC is not something entirely new as the Sarawak government had hired or filled in some positions that were not approved by the JPA in the past years.

“This is because we have been facing limitations in filling up or creating positions in the state civil service in Sarawak as any vacancies or positions are subject to JPA approval.

“Thus, a few years ago, we introduced JBC, where we have the authority to create or to fill in some positions that were not approved by the JPA.

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“These positions were hired under the JBC, also to allow better career progression for our civil servants,” he said.

Abu Bakar believed this was a strategic move as many developed countries had also moved away from the pension scheme.

On the plan to improve the salary schemes of state civil servants, he said, the Sarawak government is currently studying the matter.

“We will wait for the federal government to announce first (for the federal civil servants) before finalising the salary schemes for our state civil servants,” he said.

On March 8, Prime Minister Datuk Seri Anwar Ibarhim said the review of the Public Service Remuneration System Study (SSPA), which concerns the new civil service salary scheme, is in its final stages.

He has indicated that the long-awaited update to the SSPA is expected to be unveiled before year end, following a decade-long period of stagnant salaries for civil servants.

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