What pension amount reverts for those retired before 2013?

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Pension Payments Revert to Pre-2013 Levels for Some Retirees

For civil servants who retired before 2013, their pension payments will revert to the original pension amount as of December 2012, following a Federal Court decision. This reversion is a consequence of the court's ruling that declared the amended pension law, which introduced a two per cent annual increment, null and void. To ensure these pensioners do not receive less than their current pension, the government has implemented a special aid known as Penghargaan Khas Kepada Pesara (PKKP).
Original Pension Amount Reinstated

The Federal Court's decision on June 27 upheld the Court of Appeal's ruling, effectively cancelling the adjustment of the two per cent annual increment in pension. Consequently, the pension payments for individuals who retired before 2013 are to be recalculated based on their original pension amount from December 2012. This means that the basis for their future pension disbursements will revert to the figures established prior to the 2013 amendment of the Pension Adjustment Act.
Special Aid to Maintain Pensioner Income

To address the potential reduction in pension amounts for those affected by the court's decision, the Penghargaan Khas Kepada Pesara (PKKP) has been introduced. This special aid is calculated to be equivalent to the difference between a pensioner's current pension and their original pension amount from December 2012. The objective of PKKP is to ensure that the total sum received by these pensioners from July to December 2023 remains consistent with the pension amount they were receiving before the Federal Court ruling.
Government Commitment to Pensioner Welfare

The implementation of PKKP demonstrates the government's commitment to safeguarding the welfare of its pensioners and acknowledging their past contributions. For instance, if a pensioner's original pension in December 2012 was RM1,413.49, and they receive a PKKP payment of RM343.94, their total payout will be RM1,757.43, matching the amount they received in June 2023. This initiative ensures financial stability for a significant portion of the 874,842 pensioners as of December 31, 2022.
No Repayment of Past Increments

Crucially, pensioners who received the two per cent annual increment since 2013 are not required to repay these amounts. The court ruling specifically stated that the government cannot reclaim the two per cent annual pension adjustment that has already been disbursed. The PKKP special aid, which has been allocated under Budget 2023, will not impose additional financial burdens on the country. The future of PKKP and subsequent pension adjustments will be reviewed by the Civil Service Remuneration System Review Committee.

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What pension amount reverts for those retired before 2013?

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