KUALA LUMPUR, March 8 — The Court of Appeal will decide tomorrow on the government's appeal against a High Court’s decision that allowed a judicial review regarding a pension increase for retirees based on their final salary according to the 2016 Public Services Department Circular, effective January 2022.
A three-member bench comprising Judges Datuk Lim Chong Fong, Datuk Azhahari Kamal Ramli and Datuk Meor Hashimi Abdul Hamid will deliver the verdict at 9am.
On September 9, 2025, the panel heard submissions from senior federal counsel Ahmad Hanir Hambaly @ Arwi, representing the government and the Public Service Department (PSD) director-general, while counsels Datuk Baljit Singh Sindhu and Datuk Abd Shukor Ahmad represented retired civil servant Aminah Ahmad.
Aminah, who retired with the Foreign Ministry, filed the judicial review application on January 12, 2024 in her capacity and on behalf of 56 retired members of the public service.
On January 16, 2025, High Court judge Datuk Amarjeet Singh, when allowing the judicial review by Aminah, ordered the PSD director-general and the government to pay the arrears within three months from the date of the judgment (January 16).
However, on March 4, 2025, Judge Amarjeet allowed the government's application to stay the payment of pension arrears to 531,976 pensioners amounting to RM1.7 billion, pending the disposal of its appeal at the Court of Appeal.
Aminah was seeking a mandamus order to compel the respondents to expedite the pension adjustments to the qualifying amount following the formula contained in Sections 3 and 6 of the Pensions Adjustment Act 1980 (PAA 1980), before amendments were made under Sections 3 and 7 of the Pensions Adjustment Act (Amendment) 2013 (PAA 2013).
She also sought an order for the respondents to pay the pension arrears within 14 days, in addition to a declaratory order stating that the failure to pay violates the Federal Constitution.
Under the old scheme, the retiree's pension is revised based on the prevailing salary of incumbent civil servants in that grade. However, the 2013 amendment was introduced based on a flat rate of two per cent annual increment.
Aminah initially lost her case at the High Court in 2020. She then appealed to the Court of Appeal, which decided in her favour. The government and the PSD director-general obtained leave to appeal in 2023.
On June 27, 2023, the Federal Court affirmed the Court of Appeal's decision that declared the amended pension null and void. The five-member bench also dismissed the appeal by the government and the PSD director-general to overturn the appellate court's decision.
