Call for major reforms in post-retirement schemes

BRUNEI must address the issue of insufficient post-retirement funds now, as research reports have clearly indicated that current pension schemes are "far from adequate" to support retirees' minimum standard of living, the permanent secretary at the Prime Minister's Office said.

A certain level of income is needed for senior citizens, especially when current demographic figures show that Brunei's ageing population will increase considerably and is facing a longer life expectancy, said Pg Dato Paduka Hj Ismail Pg Hj Mohamed during the opening of the Centre for Strategic and Policy Studies' Social Security Roundtable yesterday.He said that there is a need for reforms in the Employees Trust Fund's pension schemes before more Bruneians enter the retirement age in 10 years' time. Currently, there are an estimated 20,000 people aged 55 and above in Brunei.

The permanent secretary, who is also the chairman of the Centre for Strategic and Policy Studies (CSPS), said: "The post-retirement period is of strategic importance to the country as it is considered as social security's safety net for the population."

We definitely want to maintain and sustain Brunei's excellent healthcare, education and basic infrastructure to ensure a quality standard of living, he said.

"On the research front ... CSPS has finalised four reports on two key topics which are relevant to the nation, one on economic diversification - why it is slow moving and the way forward — and the other on social security — towards a more sustainable post retirement income," he said.

Pg Dato Hj Ismail said that CSPS, an independent think tank, will present the reports to the relevant authorities for their policy considerations.

Over 100 participants from the public and private sector attended the closed-door dialogue session, which is hoped to gather feedback from the relevant stakeholders on suggestions for a sustainable post-retirement income.

Yesterday's social security roundtable at the Empire Hotel was the second series, with previous discussions on a similar topic in April last year.

Findings from Universiti Brunei Darussalam in 2007 showed that many retirees, especially those with lower income are feeling the pinch with Employees Trust Fund's contribution rate of 10 per cent from employers and employees, which was introduced in 1993.

The Brunei Times