GOVERNMENT PENSIONERS

Encik Mansor Haji Sukaimi asked the Minister for Finance (i) the number of persons receiving government pension stating their frequency distribution by age group and the total amount of the pensions; and (ii) the projected number of additional pensioners and total amount of additional pensions as at 31st December, 1986.

Mr Hon Sui Sen: The number of pensioners by age group and the total amount of their pensions on 30th November, 1981 are as follows:- Distribution by No. of Gross Monthly age group Pensioners Pension 50 years & below 1,043 $ 250,980.82 51 - 55 years 1,769 401,965.35 56 - 60 years 2,701 849,909.61 61 - 65 years 1,883 514,003.77 66 - 70 years 1,255 313,595.12 Above 70 years 1,555 321,572.71 ______ ______________ 10,206 $ 2,652,027.38 ______ ______________

The projected number of additional pensioners on 31st December, 1986 is 1,516. The actual number is likely to be lower because some may leave government service before then on dismissal, resignation or death.

The amount of additional pensions to be paid on 31st December, 1986 is extremely difficult to estimate because it depends on a number of variables and the values of these variables will not be known until then. The amount of pension is based on the length of service and the salary of the pensioner at the time of his retirement. If an officer is granted no-pay leave, his length of service is reduced by the period of such leave. If he is promoted, his pay will of course increase. Similarly, annual increments and salary revisions will push up salaries. To complicate matters further, some officers may have reached the maximum of their salary scales before they retire and in their case, a straight-line projection of their income up to the time of their retirement would result in an over-estimation.

In the circumstances, perhaps a statistical projection based on past expenditure is the most practical alternative. Based on pensions paid out in Financial Years 1976-80 and 8 months of the current Financial Year, the projected amount of pensions for FY 1986 is $20,615,513.60.