PETALING JAYA: The Public Service Department (JPA) should explain to more than a million pensioners what is the way forward following the Federal Court’s decision on the pension scheme, says a workers’ union.
Union Network International-Malaysia Labour Centre president Datuk Mohamed Shafie BP Mammal said government pensioners deserved to know what the future holds in their retirement.
“JPA has a great responsibility to the pensioners. It has an important role to play now and it must not keep quiet,” he said in an interview yesterday.
On Tuesday, the Federal Court affirmed a decision by the Court of Appeal that struck down a “less favourable” amendment to the law provision concerning civil servants’ pensions.
Pensioner Aminah Ahmad and 56 other retired civil servants had filed a lawsuit against JPA because Sections 3 and 7 of the Pensions Adjustment (Amended) Act 1980 violated Article 147 of the Federal Constitution.
The group was challenging the amendments made to the Act where a new pension scheme gave pensioners a flat rate of 2% annual increment.
Under the old scheme, government retirees were entitled to pensions based on the prevailing salary of incumbent civil servants in the same grade.
On Jan 8, 2020, the High Court dismissed Aminah’s legal challenge.
However, on Jan 13, 2022, the Court of Appeal favoured the pensioners and reversed the dismissal.
Mohamed Shafie said this was a “shocking decision”.
“Since 2013, all retired civil servants get an automatic 2% annual increment no matter if their last drawn salary was high or low.
“With this court decision, it becomes a big question mark what will be their future now.
“Will the 2% given in the last 10 years be taken back or how? What will the future hold for them, while a majority of pensioners are in the B40 group?” he said.
Reiterating that the annual 2% increment was not enough, he said the government should look at a proper pension adjustment in view of the economic challenges.“There has been almost no salary revision for the civil servants now, that’s why we always hear unions voicing out about salary adjustments.
“Pensioners don’t have yearly increments and they rely on pension adjustment to cushion the rising cost of living,” he said.
Persatuan Pesara Kerajaan dan Swasta (Pejasma) president Datuk Azih Muda concurred, adding that the cost of living during the 1980s and 2020s was different.
“The salaries in the public sector have not been reviewed for 20 years.
“The minimum wage for the public sector is still RM1,200.
“After factoring in statutory deductions and with the rising cost of living, how do people survive?” he said.
Azih said civil pensioners had contributed to nation-building and deserved attention from the government.
“I hope we can have better laws to safeguard civil pensioners’ welfare,” he said.
