Skim Pencn VS KWSP/PF untuk Penjawat Awam. Apa pilihan anda?

Spending almost one and half hour to make some research about the difference between KWSP and pencen and yes too much information and what the good things is almost everything is similar. So, no confusion, no hard thinking and the only one to do are to make a choice. When we work for government, we have special offer that is Retirement Scheme. So what is difference with KWSP/EPF and Skim Pencen?

Pension is a scheme given to the government servant that entitles with some benefits:

•  The worker does not contribute to the pension 
•  It is a family pension scheme where they are entitle to a lump sum of reward ( 7.5% X duration of service X last pay) and the pension  ( 1/600 X duration of service X last pay). The benefits of pension are given to the worker as long as he lives or if pass away shall be given to his spouse or the children if they are under 18. 
• Besides that the worker are given the golden handshake with the rate of  (1/30 X leave accumulated of maximum 120 days X last pay) 
• Medical benefits in and after service for spouse and children. Medical benefits for parents are entitled when the worker is in service.
• When the worker passes away the pension and reward shall be given to the spouse or children.
• The benefits of losing ability during working period shall be paid as given rate depends on the level of disability
• If there is increment to the salary, the pensioner will get increment too.
• Those that are pension can be pension by the options of mandatory, health reason, the termination of the post, reorganizing the organization, due to public benefits, due to government demand as well as being appointed by some organization.
• No taxation on the reward and Golden Handshake.  

Meanwhile for those that chose the KSWP skim, they are entitle with benefits such as:

• The government need to contribute 12% while the worker need to contribute 11% for KWSP
• Entitle to receive the Golden Handshake
• Medical benefits only during in service and after retirement such benefits are withdrawer
• No monthly pension given
• They need to pay back the entire loan.
• The family members will receive RM 2000 if the worker pass away or suffer from disability during work.
• Can quit the job at any time.
• May receive KWSP dividend
• May escape taxation by the limit of withdrawal RM5000 a year or depends on the current rules. 

Above is just one info I’ve taken from a blog and there’s more. But at the end, even I’m not start working yet; I’ve decided that I will take the pension scheme. I think it’s better for retirement and because I’ve decided to work for government for at least 30 years. However, in order to have better life, I must do two basic things later:

11% of the salary must be deducted directly to ASB. It’s because those who work and take KWSP still can make a living vent the 11% is deducted.

10% of the remainder must b saved in ASB or ASN. 10% is the at least saving you must made.

So, total money must be saved is 21%. Or 1/5 of the salary.