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IIIIItF

KESATUAN KAKIANCTAN AllINTERIr#ITIO ITJITL ISUIMIC UN IVERSTTY HAIJTYSI,A (KU RNIA)

(General Shff Union)

fDitubuhkon di bowohAHo Kesofuon Seke4'o i 95? No' P endaftoran : 7

JAI-AN GOIIBAK, 531OO KUAUT LUHPUR, MAUTYSUT

TELEFON i FAX: O3 - 6196 5755

BACKGROTIND

During the briefing by Tn. Hj. omar osman, President of CUEPACS at IIUM Gombak on 20th

February 2009, we announced publicly our ploposed option to pension scheme' Since then we

are hoping to be given the option to pension. Due to limited resowces such as funds, we aro

unable to come up with the public opinion for option to pension scheme- However, from the

feedback gathered,'IruM community at all campuses supports the option to pension scheme.

Effective i.t F.b*ury 2009, it was reported in the news that almost all of 66000 government

employees has opted from EPF scheme to pension scheme'

Before the briefing by president of CUEPACS, our membership in February 2009 is at 485

members. In 2 months, oru membership rose from 485 to 809 members (As at27th April 2009)

out of total number of trUM supporting staffof 1187 excluding Security. The increase of 324

members or 66.8 percent from 485 members (February 2009 figure) shows undivided support

towards our proposal for pension scheme.

Chronology of events for our efforts on option to pension scheme are as follows :-

&otrY+-\

4 2 7 APR 2009 @'

Po^ .FFT.E.FTHE

"f-&,#':l-'9/RE-SI]BMITTING PROPOSAL F'OR OPTION TO PENSION SCITEME

No. Date Event Remarks

I 2411212008 Joint Collaborative Council No.4/2008 chaired by Prof. Dato' Dr. Md.Tahir Azhar.

A proposal paper on oPtion topension scheme was firsttabled.

2. 291112009 Letter to President of IIUlWChiefS ecretary to Government

A letter on 'Proposal ToImprove IIUM Staff MembersPost Retirement Benefit' was

sent.

J. r11212009 Joint Collaborative Council No.112009 chaired bY Prof. Dato' Sri

Sved Arabi ldid.

The proposal paper on optionto pension scheme was

retabled.

4. 201212009 Briefing on Current Affairs at IITIMGombak Campus bY Tn. Hj. Omar

Osman, President of CIjESACS

The proposal for option topension scheme was madepubiic.

KESATUAN IGKTTANGAN AM

INTERNAnONAL rSUrM tC UNTVERSTTY MAUTYSA (KURNTA)

(General Stiff Union)(Ditubuhkon di bowoh AHo Kesoluon Seke4b I 959, No. P endafloron : 7 1 I )

JAUTN GOIIBAK, 531OO KUAUI LUMPUR, IIAUTYSIA

TETEFON / FAX: O3 - 6196 5755

No. Date Event Remarks5. 201212009 ' Me sryar at Jaw at anlntas a Khas

Permohonan Opsyen Dari KWSPKepada Pencen 'No. 1/2009 chairedby Tn. Hj. Omar Osman, President ofCIIEPACS / Presiden GAKUM(Gabungan Majlis Presiden danS e ti aus ah a Ke ho rmat Ke s atuanKakit ans an Univ er s iti M al av si a)

In attendance:-Secretary of GAKUM cumPresident KESKA,ULIMPresident of ASA,IIUMVice President KESUKMA,UKMPresident Vice President,Secretarv of KURNIA. IIUM

6. 23-2s12/2009 ' Mesrym at GAKUM' (G abunganMajlis Presiden dan SetiausahaKehormat Kes atuan KakttanganUniv er siti Mal aysi a) at UniversitiUtara Malaysia

In attendance:-A11 Presidents, Secretaries ofStaffUnion of MalaysianPublic Universities

7. rI/312009 Briefing on Current Affairs at IIUMKuantan Campus by Tn. Hj. OmarOsman, President of CUEPACS

After the briefiag in GombakCampus, the Kuantan Campusstaffhas also asked for thisbriefine.

8. 81412009 ' Me syuar at Jaw at anhtas a Kha sPermohonan Opsyen Dari KWSPKepada Pencen'No. 2/2009 chairedby Tn. tij. Omar Osman, President ofCUEPACS / Presiden GAKIIM(Gabungan Majlis Presiden danSeti aus aha Kehormat Kes atuanKakit an s an Univ er s iti MaI w s i a)

In attendaace:-Secretary of GAKUM cumPresident KESKA,UIIMPresident of AS,\ IIIIMVice President KE SIIKMA,IIKMPresident Vice President,Seqetary of KURNIA. trUM

9. 2s-27/412009 ' Mesytar at GAKUM' (GabunganMajlis Presiden dan SetiausahaKe ho r m at Ke s atu an Kakit an ganUniv er s iti Mal ay s i a) at UniversitiSains Malaysia

In attendance:-All Presidents, Secretaries ofStaffUnion of MalaysianPublic Universities

KESATUAN KAKTTANCaAN AM

INTERMTIO NAL ISUIH lC U N IVERSITY MAUIYSIA (KUnNH)

(General Staff Union)(Ditubuhkon di bowah Aklo Kesoluon Seke4o 195? No. Pendaftoran:711)

JAUIN GOMBAK, 531OO KUAUT LUHPUR' IIAUIYSIA

TETEFON / FP,X: 03 - 6196 5755

We have gathered the following issues cwrentiy'faced by IIIIM to be highlighted in the meeting

as follows :-

BENEFITS OF IIUM AS A GO\IERI\MEI{T INSTITUTION

One Policy For IfUM

As a govemment finded university i.e. almost 100 percent, we would iike to urge IIUM to

follow only one policy i.e. government policy only. Cunently, IIUM practices half government

and half private policy.

Housing Loans

IruM sometimes lacked of housing loans funds. IruM staff has to take housing loans from IIUMpanel bank while the IIUM subsidises the interest rates. Furthernore, IIUM staff is in the losing

end as the payment back period could not be prolonged beyond retirement limit of 58 years

because IIUM staff members are not pensionable compared to govemment pensionable officers.

Fension Card issued by Public Service Department

The purpose of pension card is to recognise IIUM retirees to get medical treatrnent at

government hospitals without the need of going through IIUM Clinic. According to a reliable

source from IIUM Clinic, the medical charge by the government hospital will be billed to IIUMaccording to private sector rate even though the budget is from govemment itself. However,

IIUM retirees need to get Guarantee Letter first from iiUM Clinic before proceeding to

govemment hospitals for treatrnent. The problem arises when the retiree lives far from IIUMClinic in Gombak Campus eg. Sabah and Sarawak.

Derivative Pension

Derivative Pension is a pension benefit paid monthly to the widow / widower and children of an

pensionable officer of pensioner who dies. Dependants of a deceased officer may be considered

for Derivative Gratuity and Derivative Pension. This benefit is not extended to IIUM staffwhodies while in service.

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KESATUAN IGKTTANCIAN AHTNTERNATTONAL |SUIM IC UNIVERSITY MATAYSIA (KURN lA)(General Staff Union)[Ditubuhkan di bowoh Akio Kesoluon Sekeqo I 959, No. P endoftoron : 7 1 1 )

JAUIN GOIIBAK, 531OO KUAUT LUMPUR, IIAUIYSIA

TEEFON / FA,\: O3 - 6196 5755

Education Benefit for IIIIM support staff

According to PSD Service Circular, govemment supporting employees are allowed to further

their studies at diploma/degree level on fulltime basis on half pay salary while IIITM support

staff can only get loanto study part time.

We append herewith :-

i. The letter ref. no. IruM/I(URNI N2ll3l1 dated2}"d January 2009 to Y.Bhg. Tan Sri

Mohd. Sidek Hj. Hassan, President of IIIIM received on 29ft January 2009.

ii. Proposal to Emplace IIUM Staff Undff GovernmentPension Scheme dated 156

December 2008 which was presented in Joint Collaborative Council meeting on 11tr

February 2009 chaired by Y.Bhg. Prof. Dato' Sri Syed Arabi Idid, Rector of IIUM.

Conclusion

V/e present the above facts for IIUM Higher Authority and the Govemment to give serious

consideration on our proposal for option to pension scheme.

Prepored by,

Kesoluon Kokitongon Amlnf ernolionol lslomic University M oloysio27tn Apnl2009

PROP)SAL TO Ev[7LACE rrutr[ |TAFF nNDERGovERNMENT pENsroN sinpan

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.I,.f /,-i,lACtsir{ENT.9Eii\JJCCS

OBJECTI\IE D.!\ristol,J

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The objecrive of rhis paper is to highiight to theproposal to emplace n0U staff memfrers uncier thethus improving Iltrtr. post retirem"nt u.n"ritr.

BACKGROUND

University Aurhority on theGovernment pension scheme

rruMwas established in 1983 underthe^compaaies Act 1g65 so as to allow theuniversity to use English u, u *"alum of instruction.

unrike other public universities, IruM staff members ar:e not regarded as publicservants and are not entitled to receive p"nrion-u-na* the Govemment pensionScheme. Arternarivery, IIUM rlrr "ont.ibutes 1 tn ii'tn"umonthry sarary wh'eIruM, t2vo to the Employ**i p*yi*rl puJ &iil -In addition ,o ,r," BpF,IruM has estabrished a il;J ;;il.d Retirem",rt'B.ln"nt Fund which wil beinvested and managed by an Investme-nt Manag".. 1h" fund was established onIiJffi Jt"t"t;,"; i::,Hff. J'

iri-w s t arr c o'G u u t ", s yz vo ot r,r, J,

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CURRENT SCE}iARIO

_In a recent study by the Employees Ptovjdenr Fund (EpF), almost 69Ta of..tir..r:deplete their EPF iunds *itilin'tit" tirst three y"0., ot,=rirenrenr^ Majoriry of theretirees in this caregory fats under the rower;.;;" g;;p. As a resurr, in a forrhto fifth year after retirement, ;;* have to """ri"i" aoing odd jobs such as

;Tffi ,L'J:'i":',ffi J"*:f ,:i:*ruc;,:::,*11'""*or*onryi,..*,'ywisely' As workers, we will evJntuariy make debts orill Y:* how to spendseryice such as housing roan som- un,l-up t" 6t;;;;r-;il:tr;: ["^:.:J;:il^llfactor leading for one needing for p".rsioo ;, ;;;rr,y

", ir" uron retiremenr.

Recently, in an unprecedented move, the Government has announced that p'bricservants who are on EPF scheme can opt to pension ,"rr.*", Even staff *"*b"r,of newry esrabrished pubric uniurJ., ,r.h u, u"i";r;; sains Islam Maraysia,universiti Darur Iman and University Malayrru rriuntu" are eligible for pensionunder the Government pension scheme. Compar"a to-iurra which has Leen inexistenc'e for 25 vears, IruM star memu*r. ii" "., Jtilor. ro receive the samebenefits as their counterparts in othe_r publi. uniu..irti", although IIUM isrecognised as a public university Uy tire Covernment.

Like other public universities, IruM n.,:d, young and dynamic professionars inorder to produce high quality research, journals uia u.uii*c papers. Therefore,granting government pension scheme would attracr hioh ^..^rjr--

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KESATUAN KAKITANGAN AMI NTERNATI ONAL tS Uttu I C UNMRS tTy,UALAYS tA (KURN|A)(General Staff Union)(Ditubuh*an di bawah Akta Kesatuan Sekerja I 959, No. pe.ndafraran : 7 I I )gPN GoMBAK, ss100 KUArA tuui;uii;ir;r.AystATELEFON / FFd.: OB - 6196 s75S

profe-ssionals to join the University,smlM could also retain loyal and hilhpast have left the university in order togoveilrment ins titutions.

workforce. By having pension scheme,quality lvorkforce as many of them in theseek pensionabie benefit offered by other

OVER\TEW OF TIIE GOVERNMENT PENSION SC'"ME' Among others, the objective of the govenunent pension scheme are as follows :-(i) To acknowredge and appreciate the excellent service, with loyarty,dedication and honesty, renlered to the G";;;;;r by a personner;

(i0 Act as a bond to public servant so that they will conti.,,ue to serve thegovenrment.

(iii) To. give guaranteed life emoluments to public servant after they have retiredfrom government service.

4'2 Pensionable officer who retires or asked to retire from Government service iseligible for the following pension benefits;

(i) Service pension (monthJy pay.nent);

(ii) Service Gratuiry (lump sum paymenr); and

(iii) cash Award in lieu of Leave, when applicabre (rump sumpayment).

5. PROPOSAL

IruM as a caring employer has always emphasised great concern for the state ofwelfare of its staff' we are indeed thankfi:t to IruM for improving our benefitswith the recent inclusion of service gratuity. In recognition of oui zs years ofservice to the nation, it is timely that the iruM staff be awarded government' pension scheme for thejr loyal service thus making our benefits on par with otherpublic universities' we believe that this pension benefit will be welcomec by I1JMcommunity especially KURMA members in the lorhat the university Authority to seek approvar ,ffi'ffiT;"TJL:JirHTlauthorities to emplace IIIra'{ staff members under the Govemment pensionScheme.

Prepored by

Kesatuan Kakitangan AmI nternstional Islamic lJniversity Malaysio.-th -rJ uecember 2009

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KESATUAN KAKITANGAN AMINTERNATI ONAL tStAM r C UN I VERSITY IltAlAyS tA (KUR N tA)(General Staff Union)(Dinbultkan di bawah Akta y,esa/uan Sekerja 1959, No. pzndaftaran : 7 ) t)JALAN GOJ}IBAK, 53100 KUAUT IUPIPUR, MAUiYSIATELEFON /.FlJ-:03 - 6196 5755

Ref. No:

Date :

mlN4/KLtRNWzL/3/t

22"d lantary 2009

Y.Bhg. Tan Sri Mohd. Sidek Hj. HassanPresidenttrntemational Islamic University Maiaysia /Chief Secretary to the GovernmentOffice of the Chief Secretary to the GovemmentLevel 4, East Wiirg perdani puha BuildingFederal Govemment Adminishative C'entue62502 Putajaya

Y. Bhg. Tan Sri,

Ass alamu "Al aykum w ar ahmalull ahi w ab arakatuh,

PROPOSAL TO ILTPROW IIAM STAFF METTBERS POST RETIREMENTBENEFIT

X#"f- letter reach while Y. Bhg' Tan Sri is in the best of health and high Islamic

2. ' As Y.Bhg. Tan Sri is well aware, the Govemment has recently u*orrr"ru *u,pubiic servants who are on EPF scheme ""n

opi t" fi;i;; ,.nr*". This shows that thepension scheme is the better retirement _solution **pur.a to EpF scheme. KesatuanKakitangan am Internatronal rsbmic (Jniversity azil"y"i"dffiai'l', ;' unionrepresenting IIUM staff T e" supporting. category. Presentty, a totai number of 1200 outof total population of i600 truM-admiiistatilve and t"c#ca staff members are in thesupporling category' our prime concem is to ensure that the rrirrra staff members, welfareand weli being are taken care of. The intention of this tettrr is to address the lack of iIUMpost retirement benefit with the absent of a guarantr.a iit" emoluments i.e. pensionscheme for IruN4 staffSe{grs compared to 1:i ,ountr.purtJ in other public universities,We are indeed thanltr:lto ry management for improvr!, ilUU post retirement benefitthrough the issuance of Service circults xo. : ana.o/2o#;; a[owing IruM retirees toseek treatnent at Government and university hospitals and arso lruM shff members arenow eligible for service gratuity when they retire eifective 1* iamtary 2007.

3' In an effort to bring this matter to IILrM higher authority, we hid-presented ourproposal to smplace liitM staff under governient pension scheme in the Jointcollaborative council Meeting No. 3i2008 (l,raih Bersoio--Jobatan) on 24s December2008, which was chaired by Deputy Rector (Academic and Research), prof. Dato, Dr. Md.Tahir Azhar. A copy of the proporul pop". tabled i" th. ;.;;; is as anached.

&"ErY$4 ?qJANi00g fr=(r1

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KESATUAN KAKITANGAN AM

TNTERNATI O NAL lS LAlit I C UNIVERSITy MATAYS lA (KURNIA)

f::r"rtril"tfhy,ll*)xuot,*s"*",iote5e,No.pendattaran:711)Jnt-nN eOMSAK, 53100 KUATA LUMPUB' IYIAIAYSIA

TFr FFON / FM.: OB - 6196 5755

4. For Y.Bhg. Tan Sri's information, lf[JM staff members are subject to

governrnent's circilars and policies. As an example, IfliM has to seek approval f'lom

Fubfic Sersices Departunent for its personnel br:dget. The Minisi:y of Higher Education in

its letterref. no..IGT(KSlr0TlMM dated,Z7n August 2007 has confirmed that IIUM is a

p"lii. higher learning institutio:r. The Ministy of Health in its letter ref' no. (67)d1m'

KIC\4-203/18/1 nd.28"dated 26s September 2006 has also recognised IfUM as a public

fuGl;;1al"g ins.titution so as to enable IIUM staff members to enjoy the same medical

ra[s cb.arged as other public higher learning institution. Copies of the said letters from the

Ministry ornignerrducation and Ministry of Health are as attached.

5. we hope,to seek Y.Bhg. Tan Sri 's approval on our ploposal to improve IruM post

retirement benefit by including iife pension scheme for IIIIM staff members so as to

enable IIUM staffmenrbers toinjoy pension scheme as well as our counterparls in other

public universities

In anticipation of Y.Bhg. Tan Sri's wise decision and wisdom and we thank you Y.Bhg'

Tan Sri forYourhe$ and guidance.

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Thank you.Wassalam.

MtIgA}trUAD SHAHRIR BIN MOHD. SIIARTFF'

PresidentKesatuan Kakitangan AmInternational Islamic University Malaysia