CEO Morning Brief

Court Gives Nod to Govt Retirees’ Bid to Hasten Pension Adjustments

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Publish date: Fri, 01 Mar 2024, 10:53 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (Feb 29): The High Court has granted leave to a group of retired civil servants to initiate legal action against the government in a bid to hasten adjustment to their pensions.

High Court judge Datuk Amarjeet Singh Serjit Singh granted retiree Aminah Ahmad's application, naming the government and the Public Service Department (PSD) director general as respondents. Aminah is initiating the legal action in her personal capacity and on behalf of 56 retired PSD members.

The court granted said leave on Thursday following no objections from the Attorney General's Chambers (AGC).

In her application filed last month, Aminah sought a court order compelling the respondents to immediately make adjustments to the pension entitlement in accordance with the formula contained within Sections 3 and 6 of the Pension Adjustment Act 1980 (PAA 1980) prior to its amendment under Sections 3 and 7 Pensions Adjustment (Amendment) Act 2013 (PAA 2013), and for this to be done within two weeks per the court order.

The retirees were represented by lawyers Datuk Abd Shukor Ahmad and Datuk Baljit Singh Sindhu, while federal counsel Ainna Sherina Saipolamin appeared for the AGC. The court has set March 14 for the next case management.

This judicial review came after the apex court's ruling that the amended pension law was null and void on June 27, 2023.

Aminah’s initial lawsuit was filed back in 2017 against the same respondents on the grounds that the PAA 2013's amendments resulted in less favourable conditions for her, compared to the retirement adjustment scheme under the PAA 1980.

Per the previous scheme, the retiree's pension is revised based on the prevailing salary of incumbent civil servants in that grade. However, the 2013 amendment was introduced based on a flat rate of a 2% annual increment.

Source: TheEdge - 1 Mar 2024

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