PUTRAJAYA: The Court of Appeal has reserved its decision on the government’s application to stay a High Court ruling that permitted pension adjustments for retirees based on their final salary according to a 2016 circular.
A three-member bench chaired by Justice Datuk Lim Chong Fong deferred judgment after hearing submissions from both parties and set September 17 for case management.
Retired civil servant Aminah Ahmad filed the judicial review application on January 12 last year on behalf of herself and 56 other retired public service members.
The High Court had on January 16 this year ordered the Public Services Department and government to pay pension arrears within three months from the judgment date.
Judge Datuk Amarjeet Singh subsequently allowed the government’s application on March 4 to stay payments of RM1.7 billion in pension arrears to 531,976 pensioners pending the appeal disposal.
Aminah sought a mandamus order to compel respondents to expedite pension adjustments according to the formula in the original Pensions Adjustment Act 1980 before its 2013 amendments.
She also requested an order for respondents to pay pension arrears within 14 days and a declaratory order stating that failure to pay violates the Federal Constitution.
The old pension scheme revised retiree pensions based on the prevailing salary of incumbent civil servants in that grade, while the 2013 amendment introduced a flat 2% annual increment.
Senior Federal Counsel Ahmad Hanir Hambaly @ Arwi argued that the High Court judge erred in holding that doctrines of res judicata, issue estoppel and abuse of court process were not applicable.
He submitted that the salary revision issue forming the crux of the judicial review had been directly raised in an Originating Summons filed by Aminah in 2017.
Counsel Datuk Dr Abd Shukor Ahmad, assisted by Datuk Dr Baljit Singh Sindhu, argued that the application did not constitute abuse of court process as it was prompted by appellants’ continued refusal to implement pension adjustments despite post-judgment salary revisions. – Bernama
