Retain annual 2% increment for pensioners, govt urged

 

Cuepacs hopes the government will expedite the salary adjustment for civil servants as the current salary structure has not been reviewed for a long time. (Bernama pic)

KUALA LUMPUR: Civil service union Cuepacs has urged the government to maintain the 2% annual increment for pensioners until Putrajaya carries out a salary and pension adjustment for civil servants.

Cuepacs president Adnan Mat said the quantum could be retained by offering other forms of incentives, like cost of living incentives, instead of stopping the increment as a whole.

He added that it was not fair to withdraw privileges enjoyed by pensioners without replacing them with other incentives.

“Based on the recent Federal Court ruling, pensioners would not enjoy any benefit until a salary adjustment is carried out for civil servants. The government must take this issue seriously to ensure the welfare of civil servants and pensioners.

“Cuepacs appeals to the government to not withdraw the 2% annual increment that had been agreed upon since 2013, because most of those who benefited from the previous scheme were from the M40 and B40 groups,” he said in a statement.

Adnan also hoped the government would expedite the salary adjustment for civil servants as the current salary structure had not been reviewed for a long time.

On June 27, the Federal Court ruled that legal amendments introduced in 2013, including a new pension scheme that increased pension payments by 2% annually, were unconstitutional and less favourable to pensioners.

The decision means that the older version of the law which contains the old pension adjustment scheme will be restored, as the new amendments in 2013 have been invalidated.

Adnan said Cuepacs respects the Federal Court’s decision to invalidate the amendments made to the pension scheme in 2013. - FMT