It has come to the attention of the G25 group of eminent Malays that the Federal Government has yet to implement a Federal Court decision in favor of government pensioners. The court ruled that the Pensions Adjustment (Amendment) Act 2013 is invalid and contravenes the Federal Constitution. The court ordered the reinstatement of the original Section 3 of the Pensions Adjustment Act of 1980. G25 stands in solidarity with the pensioners and believes that their entitlement to enjoy the fruits of their labor must be respected.
G25 also shared its expectations for Budget 2024 in a statement. The group believes that the government must not delay in implementing the Federal Court’s judgment, especially considering that many pensioners are in the later years of their lives. The current pension scheme, introduced in 2013, provides for an annual increment of 2%, which is less favorable than the former method of calculating pensions. G25 argues that this violates the Federal Constitution and the ruling of the Federal Court.
G25 highlights the disparity in pensions between those who retired decades ago and those who recently retired, citing examples from the Malaysian Armed Forces and the medical profession. The group argues that the 2% annual increment scheme is unfair and less favorable for pensioners. G25 acknowledges the potential strain on the national coffers but believes that the implementation of the Federal Court’s judgment is inevitable and mandatory.
In terms of Budget 2024 expectations, G25 emphasizes the need for institutional reforms to safeguard the country’s finances and address concerns about corruption. The group suggests reintroducing the Goods and Services Tax (GST) and reducing subsidies, particularly on petrol and diesel. G25 argues that these measures, along with strong revenue from the GST, can compensate the poor for additional costs and help the government devise a better pension scheme.
G25 concludes by urging the government to maintain Malaysia’s sovereign international credit rating to inspire confidence in the country as a stable economy. The group believes that a stronger revenue base will allow for a better pension scheme while not compromising on the principles of the Federal Constitution.
G25 suggests implementing a new pension scheme in stages that would benefit older pensioners initially and gradually extend to others. The group calls for social justice and compassion for those who have served the nation and emphasizes the need to appreciate their services.
Credit: The Star : News Feed
