THE Court of Appeal has allowed the Malaysian government's appeal against a High Court ruling that had previously favoured 50 retired members of the Malaysian Armed Forces (MAF) in a legal dispute over pension adjustments.
In a unanimous decision, the three-member appellate panel chaired by Justice Datuk Hashim Hamzah ruled that the government and its co-appellants – the Prime Minister, the Defence Minister, and the Malaysian Armed Forces Council – did not breach the Federal Constitution in their treatment of pensions for military personnel who retired before 1 January 2013.
“We find there is merit in the defendants’ appeal that warranted appellate intervention,” said Justice Hashim, who was joined on the bench by Justices Datuk Wong Kian Kheong and Datuk Ismail Brahim.
The court found that the government had not placed the claimants in a less favourable position in violation of Article 147 of the Federal Constitution, which protects pension rights.
The appeal was allowed with no order for legal costs.
In a supporting judgment, Justice Wong explained that two key government documents cited by the plaintiffs – the ‘Garis Panduan Pelaksanaan Pindaan Syarat-Syarat Perkhidmatan ATM’ dated 17 January 2013, and a letter dated 14 March 2013 concerning rank equivalency and salary adjustments under the Malaysian Remuneration System (SSM) – were not pension directives, but amendments to terms of service for active military personnel.
He emphasised that the purpose of the changes was to enhance the pay structure for serving members, not to disadvantage those who had already retired.
“There was no unequal treatment between pensioners who retired before and after 1 January 2013,” Wong noted, adding that no pension adjustments were made for post-2013 retirees either.
The legal challenge was originally filed at the Kuala Lumpur High Court on 17 November 2022 by 50 retired MAF personnel of various ranks. They sought a declaration that the government had violated the Federal Constitution and Section 187 of the Armed Forces Act 1972 by failing to implement updated pension adjustments for those who retired before 2013.
On 5 February 2023, the High Court had ruled in their favour, holding that all military pensioners should receive adjustments based on the same methods applied to those who retired after 1 January 2013. The ruling raised the possibility of equalising pension benefits across service timelines.
However, today’s appellate decision nullifies that judgment.
Representing the government was Federal Counsel M. Kogilambigai, while the retired service members were represented by lawyer Mohamed Haniff Khatri Abdulla.
Speaking to reporters after the hearing, Haniff said he would examine the court’s written judgment before deciding whether to seek leave to appeal to the Federal Court. - June 4, 2025
