Malaysia
Court of Appeal overturns High Court order on RM1.7b pension arrears claim by retired civil servants
The three‑judge bench ruled that the matter had already been resolved by a 2022 Court of Appeal decision, making the respondents’ latest judicial review an abuse of process. — Picture by Choo Choy May

PUTRAJAYA, March 9 — The Court of Appeal today set aside a High Court decision that had ordered the government to adjust the pensions of a group of retired civil servants based on a 2016 service circular.

Justice Datuk Azhahari Kamal Ramli, delivering the unanimous ruling of a three-member bench, said the issue had already been determined in a previous Court of Appeal decision in 2022, according to Free Malaysia Today.

He said the judicial review filed by Aminah Ahmad and 56 other retired civil servants was therefore res judicata and amounted to an abuse of the court process.

The bench, chaired by Justice Datuk Lim Chong Fong, also comprised Justice Datuk Meor Hashimi Abdul Hamid.

Justice Azhahari clarified that the ruling applies only to the 57 respondents involved in the present case.

The dispute arose after Aminah, a former Foreign Ministry officer, filed the judicial review seeking a court order compelling the government to adjust their pensions using the formula under the Pension Adjustment Act 1980 before amendments were introduced in 2013.

Under the earlier formula, pension revisions were tied to salary adjustments for serving civil servants.

In January 2023, the High Court allowed the respondents’ application, prompting the government to file the present appeal. The order was subsequently stayed pending the outcome of the appeal.

During submissions, the government — represented by senior federal counsel Ahmad Hanir Hambaly @ Arwi — argued that retirees were not entitled to pension adjustments based on Service Circular PP 1/2016 as the circular only enhanced the civil service scheme and did not constitute a salary revision.

The Court of Appeal agreed with the government’s position, noting that Aminah had also failed to demonstrate that she suffered losses as a result of the 2013 amendments and had not previously appealed the matter.

Following today’s ruling, the government is no longer required to implement the pension adjustments sought by the respondents.

Counsel Datuk Baljit Singh Sidhu, who appeared for the respondents together with Gurpreet Kaur Pannu, said he had instructions to seek leave to appeal the decision to the Federal Court.

Federal counsel Mohammad Sallehuddin Md Ali also appeared for the government.

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