Public sector pension and Employees Provident Fund (EPF): A comparison of pension schemes in terms of benefits towards blue- collar employees

Rubini Krishnan, (2007) Public sector pension and Employees Provident Fund (EPF): A comparison of pension schemes in terms of benefits towards blue- collar employees. Universiti Malaysia Sabah. (Unpublished)

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Abstract

Adequate savings is essential in order to lead a financially secured retirement life. A wrong decision in choosing the right pension scheme might cause a lot of mishaps and pressure especially among the blue collared employees in Malaysia. With this in mind, a comparison between the Public Sector Pension scheme and Employees Provident Fund (EPF) in terms of benefits is done towards the blue collar employees. Through this a number of outcomes are estimated to achieve. Those are; to compare the financial benefits and to explore the limits of the financial secureness provided by both schemes towards the blue collar employees of Malaysia. The research takes into account a person that is under the job grade of A1 according to the Public Service Department. He is assumed to have a working period of 30 years and a retirement life of 15 years. In order to obtain all the objectives stated, few methods were taken into consideration. A total amount of four case studies were come up where each case study has different real - life circumstances mainly medical expenditures and salary promotions. Mathematical equations and calculations of both Public Sector Pension scheme and Employees Provident Fund (EPF) were applied in all four case studies. Finally, the pension scheme which offers the most retirement income at the end of the day considering all the circumstances is chosen as the best pension scheme. Suggested pension scheme differs according to circumstances that the retiree might face throughout his retirement life. Here a blue collared employee who has no medical illnesses is suggested to opt for EPF. Those with medical expenditures below RM900 is suggested to opt for EPF where else Public Sector Pension scheme is best suggested to those with medical expenditures ranging from RM900 to RM4000. For further research, other circumstances should be considered such as education expenditures and marital status.

Item Type: Academic Exercise
Uncontrolled Keywords: EPF, Public Sector Pension scheme, blue collar employee, Public Service Department, pension scheme, retirement
Subjects: Q Science > QA Mathematics
Divisions: SCHOOL > School of Science and Technology
Depositing User: MDM SITI AZIZAH IDRIS
Date Deposited: 19 Feb 2014 05:40
Last Modified: 12 Oct 2017 00:20
URI: http://eprints.ums.edu.my/id/eprint/8275

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