MTUC against private pension fund

MTUC against private pension fund

Union hopes to dissuade EPF contributors

PETALING JAYA: The Malaysian Trades Union Congress (MTUC) has called on the 10 million contributors to the Employees Provident Fund (EPF) not to participate in the proposed Private Pension Fund (PPF) as returns for their investment are not guaranteed. (most of us already not happy with the returns of 5 to 5.75% from EPF,what else with returns that are not GUARANTEED!!!!)

"The returns would depend on market forces, and this was very risky for the contributors because they might lose all their savings," said MTUC secretary-general G. Rajasegaran.(VERY VERY TRUE)

He disclosed that insurance companies had been lobbying for such a fund for a long time, and the MTUC had objected to it and the EPF board upheld the MTUC's concern.

"Now, however, it appears that the insurance lobbyists have succeeded, based on the announcement by the finance ministry that the Government had agreed to appoint insurance companies to handle the fund," he said Wednesday.

Rajasegaran was commenting on a statement by the ministry's economic and international division under-secretary, Datuk Dr Mohd Irwan Serigar Abdullah, that EPF dividends would be gradually scaled down to encourage contributors to bring their money to the PPF. (@#$%^&* DONT EVER COME TO DISTURB OUR EPF CONTRIBUTION!)

Prime Minister Datuk Seri Najib Tun Razak announced during the tabling of the 2011 Budget last Friday that the Government would launch the PPF next year for the benefit of private sector employees and the self-employed. (What benefit?show me the figure first!)

Najib said the existing income tax relief of up to RM6,000 for an employee's contributions to the EPF would be extended to the contributions made to the PPF, including for those self-employed.
Rajasegaran said in view of this new development, the MTUC would soon launch an aggressive nationwide campaign to educate workers and encourage them to reject the PPF. (fast fast fast, please.)

In the meantime, he said the MTUC was seeking an urgent meeting with the ministry to discuss the PPF and its long-term implication for the workers, especially their well-being in old age. - Bernama