Should the Government Pay Pension Arrears to Retirees Before 2013?

thecekodok


The High Court, which was scheduled to announce a landmark decision on Monday involving more than 930,000 pensioners, has postponed the decision to January next year.


It will determine whether pensioners can claim pension arrears before 2013, following an order from the Court of Appeal that mandated the government to address the issue from January 2022.


Judge Datuk Amarjeet Singh Serjit Singh said he needed more time to make a decision and set the date for January 16 next year.


The case began with Aminah Ahmad, a former civil servant, challenging an amendment made in 2013 under the Pension Adjustment (Amendment) Act.


The change introduced a flat 2% annual pension increase, which many saw as unfair compared to the previous system, where pensions increased based on the current salary of civil servants.


In January 2022, the Court of Appeal declared the amendment unconstitutional, on the grounds that it violated Article 147 of the Federal Constitution, which protects pension rights.


The Federal Court later upheld this decision, overturning the 2013 changes.


Prime Minister Anwar Ibrahim pledged to ensure that pensioners' rights were protected, revising payments to reflect the original system.


For pensioners before 2013, pensions would be restored to the 2012 amount, while pensioners after 2013 would receive their original pension amounts.