KUALA LUMPUR: The High Court allowed a pension increase for retirees from the public sector based on their final salary according to the 2016 Public Service Department (PSD) circular, effective January 2022.
In allowing a judicial review by retired civil servant Aminah Ahmad, judge Justice Amarjeet Singh ordered the PSD and the government to pay the arrears within three months from yesterday.
Federal counsel M. Kogilambigai, representing the respondents, applied orally for a stay of the ruling but was dismissed.
The judge, however, ordered her to file a formal written application for a stay, for the court to fix a date for the hearing, Bernama reported.
Aminah, who retired as a civil servant with the Foreign Ministry, filed the judicial review application on Jan 12 last year in her capacity and on behalf of 56 pensioners from the public service.
She was seeking a mandamus order to compel the respondents to expedite the pension adjustments to the qualifying amount following the formula contained in Sections 3 and 6 of the Pensions Adjustment Act 1980 (PAA 1980) before amendments were made under Sections 3 and 7 of the Pensions Adjustment Act (Amendment) 2013 (PAA 2013).
Aminah also sought an order for the respondents to pay the pension arrears within 14 days, in addition to a declaratory order stating that the failure to pay violates the Federal Constitution.
Under the old scheme, a retiree’s pension is revised based on the prevailing salary of incumbent civil servants in that grade.
However, the amendment in 2013 was introduced based on a flat rate of 2% annual increment.
Aminah initially lost her case at the High Court in 2020. She then appealed to the Court of Appeal, which decided in her favour.
The government and the PSD director-general obtained leave to appeal in 2022.
On June 27, 2023, the Federal Court affirmed the Court of Appeal’s decision that declared the amended pension null and void, and the five-member bench also dismissed the appeal by the government and PSD director-general to overturn the appellate court’s decision.
On Feb 29 last year, the court allowed Aminah to proceed with the judicial review after the Attorney General’s Chambers did not object to the application.
Meanwhile, Justice Amarjeet in his judgment yesterday ruled that the circular had the effect of making salary revisions for government servants and under the Pensions Adjustment Act 1980, pensioners are entitled to pensions corresponding to the revision of their salary.
“An order of mandamus is granted compelling the (PSD) director-general to make corresponding adjustments for the purpose of computing the pensions in favour of the entitled pensioners.
“In view of the decision of the Federal Court (that dismissed the government and PSD’s appeal), the backdate pension is to be paid beginning January 2022 (the date of the Court of Appeal’s decision that allowed Aminah’s appeal) until the next salary revision.
“The backdated payment is to be paid to the entitled pensioners within three months from today. No order as to costs,” he said.
