KUALA LUMPUR: The High Court here has allowed the government's application to stay payments of pension arrears to 531,976 pensioners amounting to RM1.7bil pending the disposal of its appeal at the Court of Appeal.
The arrears is based on the pensioners' final salary according to the 2016 Public Services Department Circular.
Justice Datuk Amarjeet Singh made the decision on Tuesday (March 4) after submissions by Senior Federal Counsel Ahmad Hanir Hambaly @ Arwi, representing the government and the director-general of the Public Service; and lawyer Datuk Dr Abd Shukor Ahmad, representing retired civil servant Aminah Ahmad.
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"After considering the affidavits and submissions from both parties, I find that there are special circumstances to allow the stay. There is no order as to costs," said Justice Amarjeet.
Meanwhile, the court dismissed the respondent’s application to stay the decision.
The government filed the stay application against a High Court decision which allowed Aminah's judicial review and ordered the Public Service Department (PSD) and the government to pay the pension arrears within three months, starting Jan 16.
Ahmad Hanir, in his submission, said the payment of the pension arrears, starting January 2022, is estimated at RM1.7bil to be disbursed to 531,976 pensioners.
He said recalculations are necessary to align the pensions accordingly.
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"It is undeniable that the 531,976 pensioners reside in various locations, in Malaysia and abroad.
"If the respondent succeeds in the appeal at the Court of Appeal, there is a risk that the respondent will not get the additional pension payment,” he said and requested that the application for a stay of the High Court order dated Jan 16 be allowed.
Abd Shukor, who objected to the stay application, said the payment of pension arrears is a legal obligation and not a waste of time, cost or manpower.
"The prospect of success in the appeal is still speculative and cannot be used as a reason to withhold the payment of the pension arrears because any administrative burden lies entirely with the respondent and should not be used to prejudice the rights of the applicant (Aminah) and other pensioners," he said.
Public Service Director-general Tan Sri Wan Ahmad Dahlan Abdul Aziz, in an affidavit-in-reply to the stay application, said the Special Appreciation for Pensioners (PKKP) initiative was introduced by the government to align with the Federal Court's decision while safeguarding the welfare of pensioners.
"PKKP is a payment that covers the difference between the current pension amount and the original pension amount so that pensioners receive the same monthly amount as the current pension rate.
"The amount provided under PKKP is much higher than the pension arrears arising from the High Court's decision on Jan 16," he said.
Aminah, who retired as a civil servant with the Foreign Affairs Ministry, filed the judicial review application on Jan 12, 2023 in her capacity and on behalf of 56 retired members of the public service.
She applied for a mandamus order to compel the respondent to expedite the pension adjustment to the rightful amount as outlined in Sections 3 and 6 of the Pension Adjustment Act 1980 (PAA 1980) before the amendments in Sections 3 and 7 of the Pension Adjustment (Amendment) Act 2013.
She 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 2013 amendment was introduced based on a flat rate of a 2% annual increment. – Bernama
