By Karen Bong
KUCHING, Oct 26: Sarawak is currently conducting a study to decide whether to establish its own pension fund for the State Civil Service or to collaborate with the Employee’s Provident Fund (EPF).
Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg explained that the government is mulling whether to set up a fund based on the Contribution-Based Position (CBP) scheme.
“That’s why I have requested Sarawak Secretary (Datuk Amar Abu Bakar Marzuki) to restructure our civil service to reduce reliance on traditional pension funds. We aim to adopt a new retirement scheme that would enable us to raise salaries.
“Currently, salaries are inadequate, and I empathise with all Sarawak civil servants. Increasing salaries is challenging due to legal constraints. However, with an independent system, we can explore innovative solutions to make salaries more competitive in the market,” he said.
He made these remarks when addressing the Sarawak Civil Service Innovation Convention Awards (SCSICA) 2024 presentation ceremony held at a hotel here last night (Oct 25), which was broadcast live via the Ukas Channel.
Abang Johari expressed optimism about this transition, highlighting the government’s capability to implement it given the expected increase in Sarawak’s revenue, projected to surpass that of 2023.
“We must work hard to boost Sarawak’s income. InsyaAllah, there are indications that it will increase,” he added.
The Premier also reiterated his commitment to announcing an across-the-board salary increase for Sarawak civil servants when he tables the 2025 Sarawak Budget in the Sarawak Legislative Assembly next month.
He emphasised that civil servants deserve this raise due to their hard work, which has contributed to an increase in Sarawak’s revenue.
“When the State’s revenue increases, you understand. So, just wait until next month. I will be frank about what Sarawak has earned, and we will give back to the people.
“To all civil servants, both Sarawak and Federal, we work as a team. Thank you for your cooperation with the Sarawak government. God willing, we will continue to work together, team Ngap Sayot, to elevate Sarawak to greater heights,” he concluded.
Meanwhile, starting this year, new hires for the Sarawak civil service will no longer receive a monthly pension from the government upon retiring but will instead contribute to the Employees Provident Fund (EPF) retirement scheme.
All new hires will now come under the CBP scheme, where they will enjoy permanent positions as well as perks and benefits similar to those under the traditional pension scheme, including medical and housing benefits, without being tethered to the pension scheme.
CBP is not something entirely new, as the Sarawak government had previously filled some positions not approved by the Public Service Department (JPA) in the past years due to constraints encountered in filling or establishing positions within Sarawak’s civil service as vacancies or positions are subject to JPA approval. — DayakDaily
