Bill to raise retirement age to 58 passed

Bill to raise retirement age to 58 passed

(MalaysianInsider) KUALA LUMPUR, May 30 ─ The Dewan Rakyat yesterday passed the Pensions Act (Amendment) 2008 Bill that will raise civil servants' retirement age from 56 years to 58, effective July 1.

The new ruling involves full-time staff although there is an option for retirement at the age of 55 or 56.

The Dewan Rakyat also passed the Local and Statutory Bodies Pension (Amendment) Bill 2008.

The Bill will incur additional expenditure for the government although the amount has not been determined.

Deputy Minister in the Prime Minister's Department Datuk Mohd Johari Baharum said based on a detailed study in 2001 when the retirement age was increased from 55 to 56, the move did not affect the unemployment rate.

"There is no political agenda in this matter. If there is, we would have done it before the general election," he said when winding up the debate on the Bill yesterday, adding that the government would consider increasing the retirement age to 60 in stages. ─ Bernama