Socso has more than RM15b in accumulated assets

Pension plan for members may be implemented by next year.

KUALA LUMPUR: The Social Security Organisation (Socso) is working on a pension scheme for members.

Human Resources Minister Datuk Dr S. Subramaniam said yesterday he hoped the scheme would be implemented by the middle of next year.

He said Socso has been directed to conduct studies on two pension schemes — one for retirees and the other for the self-employed.

Socso will work out the qualifying age for the pension and period of payment to determine the quantum of the payout.

“We hope the pension will help cushion the retirement life of private sector workers, especially the low-income group whose small EPF savings are insufficient for them,” Dr Subramaniam said.

He was speaking to reporters after presenting certificates to 80 female participants in a skills training programme organised by Wanita MIC here.

He said working out a pension scheme for the self-employed would be more complicated as this group does not contribute to Socso.

“To cover them under Socso, we need to look into their working hours which is usually long and irregular and the varying locations of their workplace.”

Dr Subramaniam said the ministry was drafting a paper on the two new pension schemes for the cabinet.

“The government’s intention is to ensure that private sector workers enjoy pensions similar to what is available to the country’s civil servants,” he said.

Socso was formed as a government department on Jan 1, 1971 to enforce the Employees’ Social Security Act, 1969.

It became a statutory authority on July 1, 1985 and now administers two social security schemes: the employment injury insurance scheme and the invalidity pension scheme.

The objective of the social security schemes is to guarantee benefit payments to Socso's 5.1 million contributors and their dependants in the event of accidents.

Socso also arranges for medical care, physical and vocational rehabilitation, besides promoting accident prevention measures and instilling greater awareness of occupational safety and health at the workplace.

Under the employment injury scheme contributors are promised benefits for medical care, temporary disablement, permanent disablement, rehabilitation and education.

It is compulsory by law for both workers and employers to contribute to Socso.

According to Socso's balance sheet for the year ended Dec 31, 2007, as published on its official website, it had accumulated assets totalling more than RM15 billion.