PUTRAJAYA (March 6): The Court of Appeal (COA) will deliver its decision on the federal government and Public Services Department’s appeal over a RM1.7 billion payout to some 530,000 pensioners on Monday (March 9).

A three-member appellate bench, led by Datuk Lim Chong Fong, who sat with judges Datuk Azhahari Kamal Ramli and Datuk Meor Hashimi Abdul Hamid, had heard the government and PSD’s appeal on Sept 9, 2025, and reserved its decision. The bench will be delivering its verdict on Monday.

The appeal involves a decision by High Court judge Datuk Amarjeet Singh Serjit Singh, who on Jan 16 last year had allowed retired civil servant Aminah Ahmad and 56 other pensioners’ judicial review, issuing a mandamus order to compel the government to comply with service circular No 1/2016 for a pension adjustment following a salary review according to the Pension Adjustment Act 1980 (PAA 1980).

Amarjeet had ordered for the arrears to be paid within three months, only for the High Court to subsequently grant a stay of execution on it.

This highly-charged public interest case involves an expected payout of RM1.7 billion to be borne by the PSD and the government.

Aminah’s counsel Datuk Baljit Singh in a statement said the COA’s decision on Monday will affect thousands of retirees nationwide. Among the issues to be decided is whether the No 1/2016 circular amounted to a salary revision, which would result in pension adjustments.

Background of the case

Aminah, a former Wisma Putra staff member who had retired in 2002, brought the action in 2017, and named the government and the PSD director general as respondents.

She claimed that the Pension Adjustment Act 2013 amendment, which had brought about a flat rate of 2% increment, was unconstitutional when compared to the PAA 1980, which was more favourable, since the pension of government retirees was revised based on the prevailing salary of incumbent civil servants at that grade.

The COA’s unanimous decision in January 2022, written by then-judge Datuk Darryl Goon Siew Chye, agreed that the PAA 2013 amendment may result in a less favourable position, and hence contravenes Article 147 of the Federal Constitution. However, the appellate bench ruled that the decision should apply prospectively from January 2022, and not retrospectively.

Article 147, regarding the protection of pension rights, stipulates: The law applicable to any pension, gratuity or other like allowance (in this constitution referred to as an “award”) granted to a member of any of the public services, or to his widow, children, dependants, or personal representatives, shall be that in force on the relevant day or any later law not less favourable to the person to whom the award is made.

The decision was upheld by the Federal Court in June 2023. However, the government had allegedly failed to comply with the implementation of the decision, resulting in Aminah filing the judicial review to compel the government to pay the sum.

The PSD and government claim that the pensions had been adjusted to consider the court’s decision in January 2024 and said that the High Court’s allowing of the judicial review may result in double payment.

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