Federal Court strikes down ‘unconstitutional’ pension law

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Federal Court strikes down ‘unconstitutional’ pension law FMTNews FMTEng

The Federal Court has reinstated the original wording of Section 3 of the Pensions Adjustment Act 1980 after finding that an amendment passed by Parliament in 2013 breached Article 147 of the Federal Constitution.

In a unanimous decision today, a five-member apex court panel led by Court of Appeal president Abang Iskandar Abang Hashim held that the appeal by the director-general of public service and the government had no merit. Delivering the decision, Zabidin said both the High Court and the Court of Appeal had acknowledged that an amendment to Section 3 of the Pensions Adjustment Act passed in 2013 had put former civil servants in a “less favourable situation” with regard to their entitlement to increments in their pension.The apex court said the existence of such a risk meant that the amended Section 3 breached the constitutional protection accorded to pensioners by Article 147 of the Federal Constitution.

The Federal Court went on to order the reinstatement of the original Section 3 of Pensions Adjustment Act, 1980.The case arose after former Wisma Putra staff member Aminah Ahmad and 56 retired civil servants filed a lawsuit against the public service department claiming that Sections 3 and 7 of the Pensions Adjustment Act violated Article 147.

 

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