Public Sector Retirement Age Raised To 58 - Bernama

PUTRAJAYA, May 10 (Bernama) -- The mandatory retirement age of public sector employees has been raised from 56 to 58 effective July 1 this year as part of several incentives announced Saturday by Prime Minister Datuk Seri Abdullah Ahmad Badawi.

One of the other incentives is the calculation of the pension based on a maximum of 30 years of service, up from the current 25 years, for all public employees effective 1 January 2009.

The derivative pension would be maintained at 100 per cent, also effective 1 January 2009, he said at the public sector Workers' Day gathering at the Putrajaya International Convention Centre (PICC), here.

Abdullah also said that the contentious Efficiency Level Assessment (PTK) would not be abolished but the method of implementation would be improved from time to time.

The prime minister said that after considering the lifespan of Malaysians, the government decided to raise the public sector retirement age.

"Based on a government study, raising the retirement age will not jeopardise the employment opportunities of fresh graduates.

"This is important as the new generation of public employees should not feel that their opportunities for career development are diminishing but rather increasing," he said.

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