PETALING JAYA |The Malaysian Employers Federation (MEF) has urged the Social Security Organization (Socso) to extend its coverage and benefits to retired private sector employees.

MEF president Syed Hussain Syed Husman said it was crucial that private sector employees continue to receive medical coverage upon retiring at the age of 60 as they may be susceptible to health complications.

He said about 200,000 employees in the private sector retire annually.

“The irony is that when a private sector employee retires upon reaching 60, every link to Socso is severed at the time when the employee needs to be assisted,” Syed Hussain said in a statement.

“Once a private sector employee retires, he is no longer covered by medical benefits previously provided by the employer.

“It means that whatever coverage the employee had under Socso, such as the employment injury scheme and invalidity scheme, during his employment will no longer be applicable.”

Syed Hussain claimed that Socso did not benefit most employees as occupational injuries and diseases were “rare”, and many did not make claims during their employment.

“As an established social security organization, Socso should be looking at how to invest the contributions in better yielding instruments and work out schemes to cover employees who are retired and need the coverage most,” he said.

He said it was “high time” for Socso to change in view of the developments in healthcare and higher life expectancy, adding that 15% of the country’s population was expected to be above the age of 65 by 2050.

Syed Hussain also called on Bank Negara Malaysia to come up with a policy to enable insurance companies to provide medical and personal accident coverage for retirees at affordable prices.

Socso provides social security protection through cash and benefits to workers in the private sector if they are injured, for emergencies, occupational sickness and death while in employment.

All private companies must register with the organization, with employers and employees required to make monthly contributions.

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