Tuesday March 2, 2010
Socso windfall for 206,000 next month
By A. LETCHUMANAN
KUALA LUMPUR: Some 206,585 recipients of Socso pensions are in for a windfall with the Government increasing monthly payments by between 0.6% and 11.3%.
Human Resources Minister Datuk Dr S. Subramaniam said pensioners who received periodic payments awarded on or before Dec 31, 2007, would benefit from the pension increments.
“The increases will be backdated to Jan 1, 2008 and will be paid out to the pensioners from April. This is the first time such a big increase has been approved in Socso’s history,” he told reporters here yesterday.
Dr Subramaniam said those who were awarded pensions before 2003 would receive an increment of 10.2%, while those awarded pensions in 2003 would get 11.3%, 2004 (9.6%), 2005 (6.3%), 2006 (2.6%) and 2007 (0.6%).
He said the adjustment in the Socso pension rates under the Employment Injury insurance scheme and the Invalidity Pension scheme were made to accommodate the increase in the cost of living by taking into account the consumer price index.
“The additional financial implications for the new pension rates include the permanent disability benefit, dependent’s benefit, invalidity pension and survivor’s pension estimated at RM66.4mil per year,” Dr Subramaniam said.
He said the adjustments in the pension payments from Jan 1, 2008 to March 31, 2010 totalled RM142.4mil in arrears.
He said Socso would undertake regular studies to ensure that the recipients would be able to survive economically despite the rising cost of living.
Dr Subramaniam said Socso would continue to play an active role in looking after the welfare of their contributors through the Employment Injury Insurance Scheme and the Invalidity Pension Scheme.
Earlier, he presented benefits and rehabilitation equipment totalling RM365,000 to 25 recipients.