PUTRAJAYA: The Prime Minister has revealed that the restoration of the pension scheme for retired civil servants will come at a cost of RM1.3 billion. However, Datuk Seri Anwar Ibrahim clarified that this amount is not an additional allocation, as it has already been earmarked in Budget 2023. His statement came on Thursday (July 13), following the Prime Minister’s announcement on Wednesday (July 12) that the government would reinstate the previous pension scheme in response to a Federal Court decision last month.
To address the disparity in pension sums received by civil servants who retired before 2013, Anwar announced the implementation of a special assistance payout called the Special Appreciation for Pensioners (PKKP). This payout is intended to bridge the gap and ensure that these civil servants receive the same amount of pension as before December 2012. Meanwhile, those who retired from 2013 onwards will have their pensions restored to the amount they initially received at the time of retirement.
The Federal Court’s unanimous decision on June 27 dismissed the government’s appeal against the Court of Appeal’s January 2022 ruling, which declared that the amendments made to the Pensions Adjustment Act in 2013 were less favorable to retired civil servants. These amendments had mandated a 2% annual increment in pension. With the restoration of the scheme, pensions will be adjusted or increased each time the government declares a salary revision for civil servants.
This significant development in the pension scheme aims to ensure fairness and provide long-awaited relief to retired civil servants. The government’s commitment to honor their dedication and service is apparent through the allocation of RM1.3 billion in Budget 2023 for this purpose. As Malaysians celebrate this positive news, retired civil servants can look forward to a more equitable pension scheme that recognizes their valuable contributions.
Credit: The Star : News Feed
