Community leaders briefed on new pension scheme

THE Ministry of Finance's nationwide roadshow to inform the public on the newly-introduced Supplemental Contributory Scheme (SCP) moved to the Brunei-Muara District yesterday as stakeholders gathered at the Fire and Rescue Department to learn more about the pension scheme.

Attended by grassroot leaders as well as senior employees and managers from the private sector, the briefing saw Permanent Secretary at the Ministry of Finance Dato Paduka Hj Ali Apong speaking on the pension in its initial stage of development.

He said that feasibility studies on the pension scheme commenced in 2005 and by 2006, where the Ministry of Finance had prepared a working paper for it.

The new scheme was to ensure that the people would receive a minimum annuity along with the existing lump sum from the Employees Trust Fund (TAP), when they retire.

In 2007, the ministry appointed the services of the World Bank and American Insurance Group (AIG) to carry out a study, which was based on the ministry's working paper. Universiti Brunei Darussalam (UBD) was also asked to coordinate with them, where they would produce another working paper which was completed in 2007.

National think-tank Centre for Social and Policy Studies (CSPS) also assisted with security and safety net research. The previous studies conducted by the other three involved parties were also forwarded to CSPS for assessment.

Roundtable discussions with stakeholders from both the public and private sectors were also held to get their feedback on the concept, the permanent secretary said. From the discussions and the research, it was found that an integral factor in the success of the implementation of such a scheme would be raising the mandatory retirement age from 55 to 60.

Dato Hj Ali continued to say that following a discussion with the Prime Minister's Office, a decision was made in 2008.

At the beginning of this year, the Second Minister of Finance oversaw the drawing up of the final report on the SCP, which was then presented to His Majesty, who then approved the new scheme.

Following the explanation, Dato Hj Ali along with Deputy Permanent Secretary (Performance and Compliance) Hj Hisham Hj Mohd Hanifah and officers from the Ministry of Finance formed a panel which attended to questions posed by those present at the briefing.

The SCP will allow retirees to receive at least $400 in monthly instalments, for basic necessities after the age of 60. The new pension scheme and mandatory retirement age will come into effect as of January 1, 2010. (ODM1)

The Brunei Times