To answer both questions on higher level of education
Well.. In general, new joiners with master or PhD for Administrative & Diplomatic Officers (M scheme), Lecturers (Dx scheme) and Researchers (Q scheme) will have the chance to have higher basic salary or even higher grade. Nevertheless, should u have some kind of professional accreditation and joining public service, let say in Financial Services (W scheme), u will be paid handsomely though the standard basic salary of W41 which is around RM1900 only.
Having said that, person with Ir. or relevant working experience may ask for higher basic salary to compensate your experience accordingly.
Being a financial planning practitioner itself and wearing a consumer hat, it is hard to determined which is better between pension scheme or EPF scheme. Of course it is very much depending from the angle on how you look into it and how they can help to achieve your financial goal. The view is possibly different should you look into it from policy maker point of view. Again, both have their own strength and you might as well need to reaffirm your future planning.
Letting the public know, public service force is also interesting career path with the benefit and increment and all. But there is a caveat, u can't reach the super-top hierarchy in Government of Malaysia's public service until u join as Pegawai Tadbir & Diplomatik. I heard, there is an opening for it, now, and it is not easy anyway

Oh ya tiewgine8039, i am no longer a public service officer. I left service around 4-5 years ago. Currently, I am on my own path in doing business. Nonetheless, i am now landed in government building doing some management consulting job after i completed my MBA. Hohoh!