July 2023 - Brunei's New Retirement Scheme, Skim Persaraan Kebangsaan (SPK), has received mixed responses from the public since its formal implementation. While some view it as a beneficial retirement plan, others express concerns over the lack of clarity and safety mechanisms in the scheme.
Since its launch, SPK has garnered attention from citizens who have divergent views on the new retirement plan. On one side of the spectrum, there is a group of individuals who welcome SPK, emphasizing its higher monthly annuities in comparison to the combination of SCP and pension warga emas. The policy allowing continued payouts beyond the age of 80 is considered an advantage, especially for certain demographics.
The scheme also offers early withdrawal options for housing and terminal illness, which has garnered support from some individuals. They appreciate the flexibility and potential benefits that SPK may provide. However, others remain hesitant and unconvinced.
Critics of the SPK scheme highlight the lack of clarity and transparency surrounding certain key aspects. One significant concern revolves around the transition of TAP and SCP funds into the new scheme. The specific formula behind this process has not been disclosed, leading to uncertainty among some citizens.
Another point of contention is the absence of visibility for old TAP records, including personal contributions. The lack of access to this information has raised questions about where these funds have been allocated and how they contribute to the retirement account pool.
TAP has released some Frequently Asked Questions (FAQs) about SPK. However, certain essential points are still unclear, leaving individuals dissatisfied. For instance, there is confusion about whether the entire population's employer contributions are pooled together and how this affects the eventual annuity.
Moreover, the mechanism for determining annuity amounts and the role of "work productivity" in the calculation have not been standardised or fully explained, leading to doubts about the fairness of the system.
Another pressing concern is related to untimely death. In many death circumstances, the "waris" or dependents may stand to lose a significant portion of the monies that the member had received from their employer over the course of their career. The fate of these remaining contributions remains uncertain.
Despite some clarifications provided by TAP officials during presentations, the lack of a comprehensive explanation and transparency leaves many citizens feeling uneasy and anxious about their financial security in retirement.
There have been calls for the authority to provide more detailed information about the mathematical workings of the SPK scheme and ensure greater transparency. Some citizens have expressed frustration at the limited access to personal account information and call for the government to rectify the situation promptly.
As Brunei moves forward with SPK, the authority is urged to address the concerns raised by the public and provide clearer explanations about the mechanics and safety measures of the retirement scheme. Transparency and full disclosure are crucial in gaining public trust and ensuring a successful and equitable implementation of SPK for all citizens. (MHO)
