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Pension Adjustment

Frequently Asked Questions

Federal Court’s Decision Related to the Pensions Adjustment (Amendment) Act 2013

1. What is the effect of the Federal Court's decision on pensioners?

Pension payments to all pensioners shall be returned to the original pension amount, which is:

  1. public officers who retired before 2013 – pension payments are returned to the December 2012 amount; and
  2. public officers who retired from 2013 – pension payments are returned to the original amount upon retirement.
2. Do pensioner have to repay the two per cent (2%) pension increase that has been granted since 2013?

There is no need. The Federal Court has ruled that the government cannot recover the previously paid 2% annual pension adjustment.

3. What does it mean to receive special assistance known as a Special Appreciation for Pensioners (PKKP)?

PKKP is the Government’s initiative to harmonise the implementation of Federal Court’s decisions while protecting the welfare of pensioners.

PKKP is the payment of the difference between the current pension amount and the original pension amount to provide the pensioners' monthly payments equal to the current pension amount.

For example, if the pensioner's original pension amount in December 2012 was RM1,413.49, while the pension amount in June 2023 is RM1,757.43, the calculation of PKKP is as follows:

Original pension amount + PKKP special assistance = current amount

= RM1,413.49 + RM343.94 = RM1,757.43

4. How long will pensiones be paid PKKP?

Payments will be made between July 2023 and December 2023.

6. When will pension adjustments be made for pensioners?

Pension adjustments will be made in accordance with the implementation of the Public Service officers' salary review.

7. Does the Government plan to review the Public Service officers’ salaries in the near future?

The government is working on a proposal to review the salaries of Public Service officers. However, any consideration of salary revision recommendations is subject to Malaysia’s financial capacity.