MTUC opposes new pension fund
By The Malaysian Insider
“MTUC’s vehement objections against this move were endorsed by the EPF Board. The latest announcement by the finance ministry confirms that the insurance lobbyists have succeeded.
“Employees in the country should pay special attention to the finance ministry’s statement that the investments are not guaranteed; the dividend depends on the market,” he added.
KUALA LUMPUR, Oct 20 — The country’s national labour centre will oppose the proposed Private Pension Fund (PPF) by asking its members not to contribute as it will reduce the dividends from the Employees Provident Fund (EPF).
Malaysian Trades Union Congress (MTUC) secretary-general G. Rajasekaran said he was seeking an urgent meeting with Finance Minister Datuk Seri Najib Razak over the issue, adding contributors would lose out while insurance companies stood to gain from the new pension fund proposed under Budget 2011.
“MTUC will actively launch an aggressive campaign to encourage the EPF contributors not to participate in the proposed Private Pension Fund,” he said in a statement today.
Rajasekaran also quoted Economics and International Division under-secretary Datuk Dr Mohd Irwan Serigar Abdullah as saying “EPF dividends would be gradually scaled down to encourage contributors to bring their money to the PPF” at a post-Budget dialogue organised by the Malaysian Economic Association recently.
He said MTUC and the 10 million employees dependent on EPF’s annual dividends accepted that the dividend rate relied on the return on EPF’s numerous investments, but the rationale to “deliberately reduce the dividend is ridiculous and unacceptable”.
“Why is the government deliberately undermining EPF’s efforts to prudently and efficiently manage their funds, in the interest of their 10 million contributors?” he asked.
