KUALA LUMPUR – The High Court allowed a pension increase for retirees based on their final salary, as outlined in the 2016 Public Services Department Circular, which will be effective from January 2022.
In the judicial review brought by retired civil servant Aminah Ahmad, Datuk Amarjeet Singh ordered the Public Services Department (PSD) and the government to pay the pension arrears within three months, Bernama reported.
Federal counsel M. Kogilambigai, who represented the respondents, requested an immediate delay of the ruling, but the request was denied.
The judge, however, ordered her to file a formal written application for a stay, so the court could fix a date for a hearing.
Aminah who retired as a civil servant with the Foreign Affairs Ministry, filed the judicial review application on Jan 12 last year in her capacity and on behalf of 56 retired members of 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, the 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 two per cent 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 the woman to proceed with the judicial review after the Attorney-General’s Chambers did not object to the application.
Meanwhile, Judge Amarjeet in his judgment today ruled that the circular had the effect of making salary revisions for government servants and under the Pensions Adjustment Act 1980, government 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,” said Amarjeet.
Aminah is represented by counsel Datuk Shukor Ahmad, Datuk Baljit Singh Sidhu and Gurpreet Singh. – January 16, 2025