The Court of Appeal will decide on the government’s challenge to a High Court order for pension adjustments based on final salary, affecting over 530,000 retirees

KUALA LUMPUR: The Court of Appeal will deliver its verdict tomorrow on the government’s appeal against a High Court ruling concerning pension adjustments for civil service retirees.

A three-member bench comprising Judges Datuk Lim Chong Fong, Datuk Azhahari Kamal Ramli and Datuk Meor Hashimi Abdul Hamid will decide the case at 9 am.

The appeal challenges a High Court decision that allowed a judicial review regarding pension increases based on a retiree’s final salary according to a 2016 circular.

The judicial review was filed by retired civil servant Aminah Ahmad on behalf of herself and 56 other retired public service members.

On Jan 16, 2025, High Court judge Datuk Amarjeet Singh allowed the review and ordered the government to pay arrears within three months.

However, on March 4, 2025, the same judge granted a stay on the payment of RM1.7 billion in arrears to 531,976 pensioners pending the appeal’s outcome.

Aminah sought orders to compel the government to adjust pensions according to the pre-2013 Pensions Adjustment Act formula.

She argued that the government’s failure to pay violates the Federal Constitution.

The case centres on a shift from a pension scheme revised based on current salaries to a flat 2% annual increment introduced in 2013.

Aminah initially lost her case at the High Court in 2020 before succeeding at the Court of Appeal.

The government and the Public Service Department director-general obtained leave to appeal in 2023.

On June 27, 2023, the Federal Court affirmed the appellate court’s decision that declared the amended pension scheme null and void.

The Federal Court’s five-member bench also dismissed the government’s appeal to overturn that decision.

Senior federal counsel Ahmad Hanir Hambaly @ Arwi represented the government during appeal hearings last September.

Counsels Datuk Dr Baljit Singh Sindhu and Datuk Dr Abd Shukor Ahmad represented the retiree, Aminah Ahmad.

 The Sun Malaysia