Amendments to Pensions Adjustment Act unconstitutional, rules Federal Court


PUTRAJAYA: The Federal Court here has affirmed a Court of Appeal decision that struck down a "less favourable" amendment made to laws governing civil servants' pensions.

A five-judge bench chaired by Court of Appeal judge Justice Abang Iskandar Abang Hashim, dismissed the appeal by the government and the director-general of public services on grounds that it had no merit.

Other judges on the panel were Chief Judge of Sabah and Sarawak Justice Abdul Rahman Sebli, Federal Court judges Justices Hasnah Mohammed Hashim, Rhodzariah Bujang and Mohamad Zabidin Mohd Diah.

In the unanimous decision delivered by Justice Mohamad Zabidin, the panel said it was not disputed that the amended Section 3(2) of the Pensions Adjustment Act 1980 acknowledged that a less favourable situation could arise with regards to pensioners' entitlement.

The decision by the Federal Court also reinstated the original provision.

"It is our considered view that the Court of Appeal is correct in restoring the status quo.

"This is because when a court strikes down a statute or an amendment to a statute, the pre-existing provision is automatically revived," Justice Mohamad Zabidin said here on Tuesday (June 27).

The court did not make an order as to costs.

Lawyer Lim Choon Khim represented Aminah and her ex-colleagues, while senior federal counsel Shamsul Bolhassan and Liew Horng Bin appeared for the government.

The case was brought forward by the government and the director-general of public service who were appealing against the Court of Appeal's decision that reversed the decision of the High Court on Jan 8, 2020.

At High Court level, pensioner Aminah Ahmad and 56 retired civil servants filed the lawsuit against the Public Service Department (JPA) on grounds that Sections 3 and 7 of the Pensions Adjustment (Amended) Act 1980 violated Article 147 of the Federal Constitution.

The group was challenging the amendments made to the Act, where under a new pension scheme, pensioners were given annual increments at a flat 2% rate.

Under the old scheme, government retirees were entitled to pension based on the prevailing salary of incumbent civil servants in the same grade.

On Jan 8, 2020, the High Court dismissed Aminah's legal challenge.

However, on Jan 13, 2022, the Court of Appeal ruled in favour of the pensioners and reversed the dismissal.

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Nation

Rafizi to give statement at Bukit Aman over ceramah remarks
Bomba rescues four trapped in Kuala Selangor factory during flash floods
804 school bullying cases recorded in Penang from 2024 to August this year
Sarawak polls: PKR yet to approach GPS on possible cooperation, says PBB info chief
Selangor cops incinerate over 37 tonnes of seized drugs worth RM1.7bil
Education Ministry steps up flood preparations ahead of SPM
Melaka polls: Jasmine open to other ways of discussing Bandar Hilir zoning issue
Malaysia, China explore fast-track clearance for high-value agricultural exports
Clinic director held over alleged RM50,000 false claims in Lahad Datu
Public urged to report suspicious activity after attempted Sabah power asset thefts

Air Pollutant Index

Note: API is calculated based on 24hr running average of the most dominant parameter.

Highest API Readings

    Select State and Location to view the latest API reading

    Others Also Read