KUALA LUMPUR: Pensioner Aminah Ahmad succeeded in her class action suit that sought the government and the Public Service Department (PSD) to expedite pension adjustments based on a 2016 PSD circular.
High Court judge Datuk Amarjeet Singh, in allowing Aminah's judicial review application, ordered the PSD and the government to pay the arrears in three months from today.
The judge ruled that the circular had the effect of making salary revision for government pensioners and they are entitled to pensions corresponding to the revision of their salary.
"An order of mandamus is granted compelling the (PSD) director-general to make corresponding adjustments for thepurpose of computing the pensions in favour of the entitled pensioners.
"In view of the federal court's decision, backdated pensions will be paid from January 2022 until the next salary revision.
"Backdated pensions will be paid to entitled pensioners within three months from today."
Amarjeet made no order as to cost.
Senior federal counsel M. Kogilambigai applied for an oral application for stay but was objected by Aminah's lawyers, Datuk Baljit Singh Sidhu and Datuk Shukor Ahmad.
Amarjeet then ordered Kogilambigai to file a formal written application for a stay.
In the 2017 suit, Aminah, who retired from Wisma Putra in 2002, sued in her personal capacity and on behalf of 56 retired members of the public service.
She claimed that the amendments to the Pensions Adjustment Act resulted in a situation "less favourable" to her as compared with the preceding retirement adjustment scheme under the Pensions Adjustment Act 1980.
Under the old scheme, a retiree's pension is revised based on the prevailing salary of incumbent civil servants in that grade. However, the 2013 amendment was introduced based on a flat rate of two per cent annual increment.
In January 2022, the Court of Appeal ruled in favour of Aminah and granted a declaration that the amendments to Sections 3 and 7 of the Pensions Adjustment (Amendment) Act 2013 that came into effect in January 2013 were null and void as they contravened Article 147 of the Federal Constitution.
In June 2023, the Federal Court dismissed the government and PSD director-general's appeal against the Court of Appeal's decision to declare an amended pension law null and void.