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UPGRADING OF PENSION BENEFITS

UPGRADING OF PENSION BENEFITS (1968-2004)
1 August 1968  Implementation of pension benefit scheme endorsed by the Royal Suffian Commission for Public Service officers.  Gratuity award ( and derivative gratuity for widow and children of deceased officer) as additional benefit and separate from pension / derivative pension.  Derivative pension is given for a period of  12 ½ years from the date of retirement or death of a serving officer. 
1 May 1969    Implementation of  pension benefit scheme endorsed by the Royal Harun Commission for personnel of Statutory Body and Local Authorities, taking after the scheme for Public Service officers.
1 January 1974  Cash Award in lieu of Leave (GCR) at the rate of 1/30 last drawn salary for each day of expired leave not taken (i.e. vacation leave not taken at the year end and exceeding  a year leave entitlement) up to a maximum of 90 days. 
1 January 1976  

Conferment of lifelong derivative pension (100% from the original rate for 12 ½ years from the date of retirement or in-service death, 70% thereafter).  

1 January 1976 Child is provided  with pension till the age of 21 years or upon completing or ceasing to receive education for a first degree at an institution of higher learning, whichever the later, as long as not married. 
1 January 1976   Implementation of retirement in the interest of the the public service and retirement after being appointed to serve in an oganisation (privatisation / corporatisation retirement).
1 July 1980 Pension adjustment with every public sector salary review, on condition the pensioner or pension recipient resides in Malaysia. 
1 July 1980  

Derivative pension given to widower if the deceased wife has been in service after 1 July 1980.

1 July 1980

Disability pension and dependant's pension given where an officer is required to retire or dies as a result of an accident during a journey. 

22 October 1982    Gratuity is exempted from income tax (for all pension cases approved on or after 22 October 1982). 
1 January 1984  Cash award in lieu of leave (GCR) at the rate of 1/30 last drawn salary for each day of leave accumulated (i.e. vacation leave not taken at the year end, after deduction of accumulated leave for GCR from leave brought forward to the following year) up to a maximum of 90 days. 
12 April 1991  Period of reckonable service to qualify an officer for the conferment of pensionable status is reduced from 10 to 3 years.
12 April 1991 

Newly appointed personnel given an option to contribute into the Employees' Provident Fund (EPF).

12 April 1991   The minimum age for optional retirement reduced to 40 years for all personnel; with pension awarded from age 45 years (for female and male in certain posts) / 50 (male) or 55/56 (all personnel appointed on or after 12 April 1991, in accordance to compulsory retirement age.
1 January  1992   Option for employees of  Statutory Body and Local Authorities to choose the Employees' Provident Fund  Scheme (with employer's contribution into EPF being backdated) when opting for separation remuneration from Government Remuneration System (SSB/SSM).
1 January 1992 

Taking the period of interrupted past service due to allowed reasons and in between the service in the private sector before rejoining the Government.

1 January 1992   Cash Award in lieu of Leave is exempted from income tax (for 1993 assessment and beyond). 
1 August 1993 Cash Award in lieu of Leave is computed based on  the last drawn emolument (basic salary + fixed allowances).
1 January 1995    Computation factor for gratuity increased from 5% to 7.5% of last drawn salary for each completed month of service.
1 December 1997   Option for personnel of Statutory Body and Local Authorities to choose Pension Scheme and the Employees' Provident Fund  Scheme when opting for separation remuneration from Government Remuneration System (SSB/SSM), without backdating the employer's contribution to EPF but given pension benefit for the service period before the separation. 
1 October 2001  Compulsory retirement age of personnel increased from 55 years to 56 years. 
1 January 2002   Derivative pension given to widow / widower who remarries.  
1 August 2003   

Maximum Leave accumulated for Cash Award increased from 90 days to 120 days, and in the year of retirement additional leave accumulation is allowed to the maximum annual leave eligibility.

1 January 2004   Derivative pension given to mother or father of personnel who dies without leaving a widow / widower or children who are eligible for derivative pension.
1 November 2004  Cash Award in lieu of Leave given to personnel who choose Employees' Provident Fund  Scheme .