KUALA LUMPUR: The government is studying a new method for the permanent appointment of civil servants to ensure a more sustainable national financial management, Minister in Prime Minister's Department (Federal Territories) Dr Zaliha Mustafa said.
The result of the study, she said, will be presented to the Cabinet for further consideration and approval.
"The proposal to implement the initiative for permanent appointments that will also contribute is currently still in the study phase.
"This is to determine the best strategies that adhere to the 'no less favourable' principles than the existing pension scheme," she said in a parliamentary written reply.
Dr Zaliha said this in response to Datuk Seri Saravanan Murugan (BN-Tapah), who asked on the study on the implementation of the new contributory appointment initiative and the continuation of the existing policy that allows civil servants to choose their retirement scheme.
She also answered the question on behalf of Prime Minister Datuk Seri Anwar Ibrahim.
Meanwhile, Dr Zaliha said the existing pension scheme for current civil servants and retirees is still being continued.
"However, the financial implications of retirement benefits are increasing each year.
"In 2023, the total expenditure on retirement benefits was RM32 billion and is expected to reach RM46.36 billion by 2030," she said.
It was reported that the proposed improvements to the public service remuneration system are expected to be finalised and presented to the Cabinet in the second quarter of this year.
The Public Service Department said a decision on the matter is expected to be announced during the tabling of the 2025 Budget in October.