Pensions: PM, cabinet ready to discuss with retired judges, dependants

 

The prime minister, the cabinet and the government are ready to begin discussions with thirty-five retired judges and dependents over the alleged failure to increase pension payouts.

When contacted, senior federal counsel Shamsul Bolhassan confirmed he told this to the Kuala Lumpur High Court during today's case management of the ex-judges and dependents' lawsuit over the issue.

"We received instructions to initiate discussions with the plaintiffs over the matter," he said.

Shamsul represents the prime minister, the cabinet, the government and the Public Services director-general.

These four parties are the defendants targeted by legal action over the pensions. They are not named in the originating summons.

The present prime minister is Ismail Sabri Yaakob.

Shamsul added that the matter is fixed for further case management on July 14.

When contacted today, counsel Christopher Leong - acting for the former judges and dependents - confirmed that Shamsul informed the court that the Attorney-General's Chambers has instructions that the defendants are "amenable to enter into without prejudice discussions with the plaintiffs to see if the matter could possibly be resolved".

Back on Feb 14, the court suggested mediation as a method for parties to try to resolve the lawsuit.

Earlier on Jan 24, the retired judges and dependents filed the originating summons.

Pension calculations changed

According to cause papers, the plaintiffs contended, among others, that the defendants failed to prescribe, via an order in the Gazette, an appropriate higher percentage than two percent annually to the pensions and other benefits to each plaintiff, in line with Section 15B(2) of the Judges Remuneration Act 1971.

The plaintiffs contended that the defendants had effected an amendment to Section 15B, which allegedly changed the calculation of the pensions.

They claimed that initially, the unamended Section 15B would calculate the pensions based on an automatic adjustment to correspond to the salary increase of serving judges.

The plaintiffs, however, claimed that when the amendment to the provision (Section 15B(1)) was made and took effect on July 1, 2015, it resulted in the pensions being adjusted annually by a two percent increment while not even taking into account or reflecting the increase in serving judges' salaries.

They further claimed that this purported failure has "continuously altered the pension and other benefits of each of the plaintiffs to their disadvantage" in breach of Article 125 (7) of the Federal Constitution, read with Article 125(9) of the said Constitution.

Article 125 of the Federal Constitution deals with the tenure of office and remuneration of judges of the Federal Court.

"The plaintiffs are aggrieved by the anomalous and unconstitutional situation which has been brought about through the non-adjustment of their constitutionally-protected right to advantageous adjustment of their pensions pursuant to Articles 125(7) and 125(9) of the Federal Constitution, as embodied in the Judges' Remuneration Act 1971.

"These retrospective amendments have adversely altered the pensions of the plaintiffs to their detriment and disadvantage owing to the non-implementation of parts of the amended provisions, in outright breach of Articles 125(7) and 125(9) of the Federal Constitution," claimed the plaintiffs.

They contended that the present lawsuit was filed following the government disregarding their letter of demand dated Sept 17 last year.

They explained that the legal letter had sought for the defendants to pay to each plaintiff, within two weeks beginning Sept 17 last year, "one lump sum the amount each of them is entitled to".

Among the reliefs the plaintiffs sought through the suit is an order for the prime minister and the cabinet ministers to advise the Yang di-Pertuan Agong to prescribe, via an order in the Gazette, the appropriate higher percentage of increment than two percent annually to the pension and other benefits.

The former judges and dependents also seek, among others, pre-judgment interest on the amount awarded at five percent, to be calculated from July 1, 2015, until the date of judgment, as well as a five interest on the amount awarded, to be calculated from the date of judgment until the full settlement. - Mkini