Pensioners to get special payout to make up for shortfall, says PM

PETALING JAYA: The government will restore the previous pension scheme for retired civil servants following a Federal Court decision last month, says Datuk Seri Anwar Ibrahim.

The Prime Minister said a special assistance payout called the Special Appreciation for Pensioners (PKKP) would be disbursed to make up for the difference in the pension sum received.

Anwar, in a statement on Wednesday (July 12) said that civil servants who retired before 2013 would have their pensions restored to the amount they received before December 2012.

He said those who retired from 2013 onwards will have their pensions restored to the amount they received at the time of retirement.

"The government always appreciates the contributions of retired civil servants and are concerned for their welfare," he said.

On June 27, the Federal Court in a unanimous decision, dismissed the government's appeal against the Court of Appeal's decision in January 2022 to declare that amendments made to the Pensions Adjustment Act in 2013 – where pensioners were given a 2% increment annually – was less favourable to retired civil servants.

The now-restored scheme adjusts or increases the pensions each time the government declares a salary revision for civil servants.