PUTRAJAYA, July 20 — The Penghargaan Khas Kepada Pesara (PKKP) special aid is an initiative implemented by the government to ensure that the amount of pension and derivative pension received is not less following the court ruling cancelling the adjustment of two per cent annual increment in pension, according to the Public Service Department (JPA).

JPA Pension Division director Datuk Mohd Shaiful Ibrahim said PKKP is a special payment equivalent to the difference between the current pension amount and the original pension so that the sum received by pensioners from July to December 2023 will be the same as the current pension amount.

On June 27, the Federal Court upheld the Court of Appeal’s decision declaring the amended pension law as null and void after rejecting an appeal by the government to annul the decision.

According to Mohd Shaiful, following the Federal Court decision relating to the Pension Adjustment (Amendment) Act 2013, the pension payment for civil servants who retired before 2013 would revert to the original pension amount in December 2012, while that for officers who retired beginning 2013 would go back to the pension amount when they retired.

"The government has decided that pension and derivative pension be paid using the original pension amount plus the PKKP special aid for July until December 2023,” he told reporters here, adding that the government respects the court decision.

"For example, if the original pension amount of pensioners in December 2012 was RM1,413.49, with the PKKP (payment) of RM343.94, the pensioners will receive RM1,757.43, which is the same as the amount received in June 2023,” he added.

Mohd Shaiful said the PKKP initiative was implemented to harmonise the need for the government to take care of pensioners’ welfare, apart from appreciating the contributions of this group while they were in service.

He also said the PKKP special aid would not have financial implications on the country as the sum had been allocated under Budget 2023.

Mohd Shaiful said pensioners also need not have to pay back the two per cent annual increment given since 2013 because the court ruling stated that the government could not collect back the two per cent annual pension adjustment which had been paid.

Asked whether the PKKP would be continued next year, Mohd Shaiful said it would be studied and discussed in the Civil Service Remuneration System Review Committee meeting which would be chaired by Prime Minister Datuk Seri Anwar Ibrahim soon.

"For subsequent pension adjustment, studies will be implemented alongside the proposal on review of civil service remuneration system together with the Finance Ministry to see the effect on pensioners,” he said.

According to him, the last pension adjustment made in 2012 involved a rise of seven to 13 per cent depending on grade, and it was subsequently adjusted by the government then by giving a two per cent annual increment without having to wait for the implementation of a salary adjustment.

There were 874,842 pensioners as at December 31, 2022, he said. — Bernama