SOCSO STUDYING RETRENCHMENT FUND

KUALA LUMPUR, Feb 14 (Bernama)-- The Social Security Organisation (SOCSO) is
studying the feasibility of setting up a retrenchment fund, chief executive
officer K. Selvarajah said Saturday.

He told Bernama that it would take about six months to complete the study.

The idea of such a fund was first mooted in 1997 by the Malaysian Trades
Union Congress (MTUC) during the last Asian economic crisis when Malaysia was
badly affected.

Under the MTUC proposal, each worker could contribute RM1 a month and this
could be matched ringgit for ringgit by the employer. It then estimated that a
total of RM14 million could be collected monthly, based on the seven million
active workers.

Meanwhile, Selvarajah said SOCSO provided several benefits to its 5.5
million contributors.

Among them were a RM1,500 one-off payment for funeral expenses to the
next-of-kin or those who incurred costs in case there were no relatives, a
maximum RM500 constant attendance allowance for those needing constant care and
an education loan of up to a maximum of RM100,000.

Selvarajah said other benefits included free medical treatment either at
SOCSO panel of doctors or government hospitals, Temporary or Permanent
Disablement payment, Invalidity Pension, Invalidity Grant, Survivors Pension and
Rehabilitation Assistance.

-- BERNAMA