[UPDATED] Retired civil servants to get original pension amount, says Anwar after court ruling

KUALA LUMPUR – Retired civil servants will be paid the original pension amount following the Federal Court's decision last month to reject amendments made in 2013 to the pensions law, the cabinet decided today.

Prime Minister Datuk Seri Anwar Ibrahim said for pension payments from July to December 2023, the difference between the current pension amount and original amount will be paid to retired civil servants in the form of special assistance.

The payment of the difference is for civil servants who are paid a higher amount of pensions following the legal amendments.

“This payment will be called Penghargaan Khas Kepada Pesara (PKKP) in order to ensure that the payment received by retired civil servants will be same as the current pensions amount, which is the amount as of June 2023,” Anwar said in a statement this evening.

He said the cabinet today decided on the matter after taking into account the apex court’s recent judgement.

The amendments to the pensions law to raise pension payments by 2% each year were made in 2013 but were challenged in court by a group of retired civil servants.

The Federal Court on June 27 had upheld a lower court’s decision to strike down the amendments as unconstitutional.

As such, the law prior to the amendments will be back in force to govern pension adjustments.

“The government is aware of the decision of the Federal Court on June 27, 2023 which has ruled that Sections 3 and 7 of the Pension Adjustment (Amendment) Act 2013 are invalid, and the law before the amendments is applicable by itself for the purpose of pension adjustments,” Anwar said.

He also said the government would continue to study a review of salaries for the civil service as well as for retired public officers. 

The adjustment of pensions will be done according to the Pensions Adjustment Act 1980.

“We hope this decision can bring a positive impact to civil servants, retired public officers and the government,” Anwar said. – The Vibes, July 12, 2023