Retired civil servants to get pensions owed to them, says PM

 

Prime Minister Anwar Ibrahim said this will ensure the amount received by retirees is equivalent to the current pension amount as of June 2023. (Bernama pic)

PETALING JAYA: The government will pay retired civil servants the pensions owed to them in line with the Federal Court’s recent ruling that amendments made in 2013 to a law governing the pension of civil servants were unconstitutional.

“The difference between the current pension amount and the original pension amount will now be paid in the form of a special assistance called Penghargaan Khas Kepada Pesara (PKKP),” said Prime Minister Anwar Ibrahim in a statement.

Anwar said this was to ensure the amount received by retirees is equivalent to the current pension amount as of June 2023.

On June 27, the Federal Court affirmed a lower court ruling striking down as unconstitutional a 2013 amendment to the Pensions Adjustment Act 1980, which governs the pension of civil servants.

The amendments introduced a new scheme that increases pension payments annually by 2%.

The apex court’s 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.

In today’s statement, Anwar said the government always appreciates the contributions of retirees and is concerned about their welfare.

He added that pension adjustments will be implemented based on the predetermined percentage increase in accordance with the Pensions Adjustment Act 1980.

“It is hoped that this will have a positive impact on public servants, retired public servants, and the government,” he said. - FMT