The Court of Appeal has overturned a High Court order for the government to pay RM1.7 billion in pension arrears to over 530,000 retirees

PUTRAJAYA: The government has won its appeal to set aside a High Court order to pay RM1.7 billion in pension arrears.

A three-member Court of Appeal bench delivered the unanimous decision today.

The bench comprised Justices Datuk Lim Chong Fong, Datuk Azhahari Kamal Ramli and Datuk Meor Hashimi Abdul Hamid.

Justice Azhahari, reading the decision, stated the pension adjustment issue was already decided by a previous Court of Appeal in 2022.

That ruling related to an originating summons filed by the applicant, Aminah Ahmad, in 2017.

Aminah, who retired from the Foreign Ministry, filed the latest judicial review application on January 12, 2024.

She acted in her own capacity and on behalf of 56 other retired public servants.

The High Court had ordered payment to 531,976 pensioners based on a 2016 Public Services Department circular.

Following today’s appeal victory, the government is not required to pay the RM1.7 billion sum.

Justice Datuk Azhahari Kamal Ramli, who delivered the court’s judgment, stated that the issue of whether a 2016 Public Service Department circular constituted a salary revision was irrelevant to the appeal.

“In the circumstances, we are of the opinion that this is an appropriate case where we should exercise appellate intervention to correct the plain error committed by the learned High Court judge,” he said.

The bench made no order as to costs, citing the appeal’s wide public interest.

On 16 January 2025, High Court judge Datuk Amarjeet Singh had allowed a judicial review application by pensioner Aminah Abdullah.

He ordered the PSD director-general and the government to pay the arrears within three months from the judgment date.

The arrears were for 531,976 pensioners, amounting to the RM1.7 billion sum.

However, on 4 March 2025, Judge Amarjeet granted the government a stay on the payment pending the outcome of its appeal.

The Court of Appeal’s ruling now overturns that original order entirely.