Malaysian Retiree Wins Lawsuit, Govt Faces RM1.7 Billion Payout To 531,976 Pensioners
Here's a brief look at how Aminah Ahmad and 56 civil service retirees took the government to court over unfair pension payout adjustments.
By Yap Wan Xiang — 24 Feb 2025, 04:05 PM
In a landmark legal battle, retired civil servant Aminah Ahmad has won a lawsuit against the government, potentially leading to a RM1.7 billion payout for over half a million pensioners
The case, which reached the Federal Court, revolved around amendments to the Pension Adjustment Act, reported Harian Metro.
The amendments introduced a fixed 2% annual pension increase. Before 2013, pensions were adjusted based on economic changes and salary revisions, meaning retirees' pensions rose whenever civil servants received pay raises — usually every five years.
In response to the amendments, Aminah, a former Wisma Putra officer, and 56 civil service retirees sued the government, arguing that the changes violated Article 147 of the Federal Constitution, which protects pensioners from unfair reductions in their pension rights.
The courts agreed that the 2013 amendment was less beneficial to pensioners, ruling it unconstitutional
Following the Federal Court's decision, Aminah filed another lawsuit demanding that the government recalculate pension payments since 2013 based on the previous rules.
As a result, the High Court ordered the government to pay an estimated RM1.7 billion in backdated pension adjustments to 531,976 affected retirees.
The government has since applied a stay on the decision pending appeal, citing that calculating the arrears may take time.
The stay application indicates that the legal battle over pension adjustments may continue, leaving retirees waiting for the outcome and disbursement of the owed arrears.
To learn more about the lawsuits in detail, read Harian Metro's coverage here or FMT's coverage here.
