Saturday September 29, 2012

Government increases minimum pension to RM820

GOVERNMENT pensioners with at least 25 years of service will enjoy a minimum pension of RM820, an increase of RM100 from the current rate.

Datuk Seri Najib Tun Razak said the new minimum rate would be backdated from Jan 1 this year.

“This will involve an additional allocation of RM60mil annually and will benefit 50,371 pensioners, including derivative pension recipients.

“Also, in appreciation of senior citizens (those above 60), the Government will reduce the processing fee of a five-year passport by 50%, from RM300 to RM150,” he said.

Najib added that the processing fee for the two-year passport would be reduced from RM100 to RM80.

“These reductions will also be extended to children aged 12 and below.

“The new rates will be effective from January next year,” he said.

When announcing the one-and-a-half month bonus for civil servants, Najib said pensioners would also be getting a special payment of RM500.

Pensioners had in August received a similar special payment when the Government announced a half-month bonus for civil servants.

The Malaysian Government Pensioners Association said the RM100 increase in the minimum pension and the RM500 special payment would help them with the escalating cost of living.

Its president Tan Sri Wan Mahmood Pawan Teh said the new rate would be a big help, especially to those living in urban areas.

“The quantum may not seem much but with prudent spending, pensioners should be able to ‘breathe’. The 50% discount for passport application will allow those with extra money to see the world,” he said.

Retired teacher Vicky Chan, 70, said the increase in minimum pension was timely due to the increased cost of living.

News

Saturday September 29, 2012

Government increases minimum pension to RM820