KUALA LUMPUR: The Congress of Unions of Employees in the Public and Civil Service (Cuepacs) has expressed its appreciation to Prime Minister Datuk Seri Anwar Ibrahim over his concern for the welfare of government retirees.
Its president Datuk Adnan Mat said the government’s decision to provide a special aid known as Special Recognition for Retirees (PKKP) was the right move to help the group who were also affected by the rising cost of living.
"The PKKP announced by the government means that the two per cent annual pension increment enjoyed by retirees before this will be maintained. This is reasonable, considering that the pension amount is not high.
"We hope the two per cent increment will be maintained until the salary adjustment is made. If the increment falls below two per cent after the adjustment, we hope the original amount will be maintained. However, if it exceeds two per cent, we would appreciate the government's consideration for a higher increase,” he told Bernama on Thursday (July 13).
Adnan said the move would benefit about 720,000 government retirees.
Yesterday, Anwar said the government has decided that pension and derivative pension payments from July to December 2023 would be based on the original pension amount.
Anwar, who is also Finance Minister, said this was following the Federal Court’s decision that Sections 3 and 7 of of the Pensions Adjustment (Amendment) Act 2013 were null and void, and therefore, the law before the amendment is applicable by itself for pension adjustment.
As such, he said pension payments for civil servants who retired before 2013 to be reverted to the December 2012 amount while those who retired from 2013 onwards would have their pension payments reverted to the original amount at the time of their retirement.
"The difference between the current pension amount and the original figure will continue to be paid in the form of a special aid known as PKKP to enable the amount received by pensioners to be the same as the one received in June 2023,” he said.
On June 27, the Federal Court ruled that the amended pension law - which introduced a new pension scheme that adjusts pension payments every year by a two per cent increment - as less favourable to pensioners and unconstitutional. - Bernama
