Govt pensioners should not lose out after Federal Court ruling, says retirees group

JOHOR BARU: A retroactive adjustment of public sector salaries will benefit one million pensioners following a Federal Court decision on the pension scheme, says a group representing retired government servants.

Pertubuhan Pesara Kerajaan Malaysia (Kupemas) chairman Datuk Omar Osman said there were concerns that pensioners would lose out on indirect benefits from the annual increment given to current civil servants.

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“About 80% of the one million retired civil servants are in the M40 and B40 groups," he told a press conference here on Tuesday (July 4).

"Many of them previously earned about RM1,000 monthly when they were still working many years ago.

“Even though the annual increment is not that big, if (the Public Service Department) does not revise the salary of presently active civil servants, then pensioners will also surely be affected."

The former Cuepacs president said Kupemas hoped the government would speed up the salary adjustment for civil servants, as it would indirectly benefit the retirees too.

“It has been about 10 years since the last salary review for civil servants.

"We do not want retired civil servants to lose out on the annual increment they have received since 2013 without (some form of alternative)," he said.

Omar also said the sacrifices made by pensioners during their service with the government should not be taken lightly.

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On June 27, the Federal Court affirmed a decision by the Court of Appeal that struck down a "less favourable" amendment to the law provision concerning civil servants' pensions.

Pensioner Aminah Ahmad and 56 other retired civil servants had filed a lawsuit against the Public Service Department because Sections 3 and 7 of the Pensions Adjustment (Amended) Act 1980 violated Article 147 of the Federal Constitution.

The group was challenging the amendments to the Act where a new pension scheme gave pensioners a flat rate of 2% annual increment.

Under the old scheme, government retirees were entitled to pensions 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 last year, the Court of Appeal favoured the pensioners and reversed the dismissal.