Malaysian Retiree Wins Lawsuit, Govt Faces RM1.7 Billion Payout To 531,976 Pensioners

A major legal victory for a retired civil servant could force the government to pay over half a million pensioners RM1.7 billion in backdated payments. The lawsuit, led by Aminah Ahmad and 56 other retirees, challenged changes to the Pension Adjustment Act that reduced their pension benefits.

Before 2013, pensions increased based on salary revisions for active civil servants. However, an amendment introduced a fixed 2% annual increase instead, limiting pension growth. Arguing that this change violated their constitutional rights, the retirees took the case to court.

The Federal Court ruled in their favor, declaring the amendment unconstitutional. Following the ruling, Aminah filed another lawsuit demanding a recalculation of pensions dating back to 2013. The High Court upheld her claim, ordering the government to compensate the affected pensioners.

Despite the ruling, the government has applied for a stay on the decision, arguing that calculating the arrears will take time. This means retirees will have to wait longer for the funds they are owed. The case is expected to set a major precedent for future pension policies in Malaysia.

Source: SAYS