They want the RCI to examine, among others, why amounts linked to the previous 2% annual pension increase are still being taken into account.
About 70 veterans and retirees, represented by Rafique Ali Ahmad Nordin, gathered outside Parliament today to voice their concerns.
Rafique said the RCI should examine why amounts linked to the previous 2% annual pension increase mechanism are being taken into account in the current scheme, despite a 2023 court ruling that the mechanism in the 2013 amendments to the Pensions Adjustment Act 1980 was unconstitutional and invalid.
“The main question is why the effect of the 2% mechanism, which was struck down by the Federal Court, is still reflected in the SSPA 2024 pension calculation,” he told FMT.
The SSPA, which came into force on Dec 1, 2024, linked pension adjustments to the revised salary structure instead of the previous 2% annual increase.
The government said the SSPA pension adjustment for retirees was based on the equivalent final salary for 2024, with the pension calculated as one-600th of the equivalent final salary multiplied by the years of service, plus the special appreciation to pensioners (PKKP) component where applicable.
Rafique said the issue affects about 530,000 civil service pensioners and armed forces veterans who retired before 2013.
He said the fixed 2% increase widened the gap between pensioners because those with higher pensions received larger increases than those with lower pensions.
He said the memorandum proposes that the RCI examine whether the current method complies with the Pensions Adjustment Act and related regulations, as well as how the formula was developed.
He said the proposed inquiry was not meant to interfere with court proceedings over the method used to adjust pensions, but to obtain a “complete picture of the facts, documents, policies and administrative processes” and find a lasting solution to the pension dispute. - FMT
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