Kota Kinabalu: More than 6,000 Sabah pensioners expect to gain from the “Penghargaan Khas Kepada Pesara” (PKKP) announced by Prime Minister Datuk Seri Anwar Ibrahim to compensate them following a June 2023 Federal Court ruling to reinstate higher pension benefits as based on the old Pensions Adjustment Act 1980.
The apex court’s decision means that the older version of the law which contains the old pension adjustment scheme would be restored, as the amendments in 2013 have been invalidated.
For civil servants who retired before 2013, pension payments would revert to the amount as in December 2012.
The Federal Court on June 27 ruled unanimously that Sections 3 and 7 of the Pensions Adjustment (Amendment) Act 2013 which introduced a lower flat rate of two per cent annual increment were invalid and unconstitutional.
Our report on July 13.
Chief Judge of Malaya Datuk Mohamad Zabidin Mohd Diah explained the amendments made to Sections 3 and 7 of the Pensions Adjustment (Amendment) Act 2013 would be less beneficial to pensioners.
Sabah Government Pensioners Association President Datuk Wilfred Lingham said:
“All of us retired before 2013 and therefore are affected. We have been appealing to the Federal Government since 2020.
“A joint Memorandum with our Sarawak counterpart was sent to the Federal Government appealing for yearly pension increment be raised from two per cent to five per cent. And 20 per cent for B40 pensioners.
“There was no response until this court ruling on June 26, 2023. We welcome it gladly and are anxiously awaiting the mechanism for it to be implemented. More than 6,000 members expect some windfall,” Wilfred said.
Anwar said the government always appreciates the contributions of retirees and is concerned about their welfare and that pension adjustments will be implemented based on the predetermined percentage increase in accordance with the Pensions Adjustment Act 1980.
“It is hoped that this will have a positive impact on public servants, retired public servants, and the government,” Anwar said.
