IPOH: The Perak government will study the impact of the implementation of the non-pensionable scheme for new civil servants at state level.

       Mentri Besar Datuk Seri Saarani Mohamad said at present, the state civil services includes both permanent pensionable positions as well as contract staff.

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       “For me, this is a new thing, so I'd like to read and digest the Cabinet papers on this first.

       “Before anything (is implemented at state level), the Perak government will look into its potential effects on the state administration system," he told a press conference after launching the state-level unity government convention at a hotel here on Sunday (Jan 28).

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       Saarani said such a scheme had been discussed by the government before.

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       “So is not a sudden thing for this government to have implemented it, and I am sure the Cabinet has its rationale for this decision," he added.

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       Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi had said the government would phase out the traditional pension scheme and opt for Employees Provident Fund (EPF) contributions for new hires instead.

       This decision came after projections showed the government would have to spend some RM120bil to cover pension payments by 2040 if no changes are made to the existing civil service employment scheme.