Retired civil servants react to the Court of Appeal’s decision to block RM1.7 billion in pension arrears, with some accepting the ruling and others considering a final appeal.
PETALING JAYA: Retired civil servants have expressed mixed reactions following a decision by the Court of Appeal to block RM1.7 billion in pension arrears.
While some fear the ruling could affect their finances, others say it would not significantly impact their day-to-day lives.
The judicial review, filed on Jan 12, 2024 by retired Foreign Ministry officer Aminah Ahmad and 56 other retired civil servants, sought arrears based on pre-2013 pension formulas that linked adjustments to serving officers’ salaries.
The High Court had ruled in favour of the retirees but the government successfully appealed, with the Court of Appeal citing legal doctrines such as res judicata and abuse of process to bar further claims.
Datuk Shahul Hamid Abdul Rahim, 70, a retired KLIA immigration operations chief, said many retirees had left the service before the 2013 amendment which replaced salary-linked adjustments with a flat 2% annual increment.
“Pension adjustments were linked to salary revisions.
“Now the government gives a fixed 2% increment, which is considered an allowance, not an official increase.
“The Pensions Act and the Constitution do not state that pensions must increase. Salaries may rise, but pensions do not necessarily increase.”
He also highlighted the difference between traditional pensions and retirement systems based on lump-sum savings.
“With pensions, although the amount may be small, retirees still receive a steady monthly income after retirement.
“But when it is replaced with EPF, it depends on how individuals manage the money.
“If someone spends the lump sum quickly, they may end up with no regular income later.”
“We respect the court’s decision because that is the law and the ruling made by the court.
“But we could still appeal to the Federal Court. That will be our final opportunity.”
Suhirley Arfiza Khalil, 52, said the ruling reflects how civil service remuneration schemes operate.
“Whenever the government introduces a new scheme, officers must sign a declaration agreeing to adopt it.
“Once you accept the new scheme, your previous scheme and its benefits effectively stop.
“For example, when I moved to the new scheme, my salary increased by about 15%.
“That itself was a benefit. So when I retired, I had already agreed to the terms voluntarily. Nobody forced me to accept it.”
She added that retirees who accepted newer frameworks cannot later claim advantages from older schemes.
“In my opinion, the appeal made by Aminah is actually not very relevant.
“Yes, the previous system may have provided certain advantages.
“But once someone agrees to adopt a new scheme, any benefits from the old system are automatically discontinued. We simply have to move on.”
A 65-year-old retired government healthcare worker, who requested anonymity, said expectations of large arrear payments fuelled disappointment among some pensioners.
“Most government pensioners are in the B40 category. Monthly pensions are often below RM3,500, so annual adjustments are not very significant.
“Maybe individuals notice the difference for a month or two, but after that, things go back to normal.”
He added that he was personally less affected, having largely settled his financial commitments.
“Perhaps those living in cities and still supporting families were hoping the case would succeed because of the arrears. As for me, I’m fortunate.
“My housing and car loans are settled, my children are grown and working, and my health is still good, so I’m grateful.”
The Sun Malaysia
