KUALA LUMPUR, Sept 7 — A court ruling last June that an annual 2 per cent increment for pensions which has been given since 2012 is unconstitutional has retired civil servants worried their pensions will revert to pre-2013 levels next year as the government is soon to table Budget 2024 in Parliament.

Even as it expressed its thanks to the government for continuing to pay the existing sum despite the amendments to the Pensions Act 1980, Persatuan Bekas Penjawat Awam & Swasta Malaysia (Pejasma) hoped the government will not change its disbursement next year.

"We are fortunate this is possible because the provision was included in this year’s budget. So, for the pensioners to continue getting the same amount, it must be provided for in Budget 2024 being drawn up now.

"Otherwise, we will be in deep trouble as the difference amounts to hundreds of ringgit,” Pejasma president Datuk Azih Muda told news portal Free Malaysia Today.

In the news report published this morning, Azih said the ongoing salary revision may take over a year to finalise, and pensioners will be badly hit if payment of the special incentive is not continued while the process is ongoing.

He also said a notice to that effect has been displayed on the homepage of the Public Services Department.

On June 28 following the Federal Court ruling, the government announced that the current pension payments that will include increments given over the last 10 years, will continue to be paid until the end of this year in the form of a special incentive payment to the retirees.

Azih, a former Cuepacs president, said a retiree receiving a monthly pension of RM1,413 in December 2012 would draw RM1,757 per month presently with the increment in place.

"So, the difference in the amount will be RM344, which is now classified as a special incentive payment. Can you imagine pensioners, especially the estimated 60 per cent in the B40 category, getting much lower sums suddenly?” he was quoted as saying.

Azih urged Prime Minister Datuk Seri Anwar Ibrahim to continue with the special payments until the new salary scheme for civil servants with the adjusted pensions is put in place.

On June 27, the Federal Court sided with a lower court ruling striking down a 2013 amendment to the Pensions Adjustment Act 1980 as unconstitutional.

The amendments introduced a new scheme that increases pension payments to civil servants at a fixed rate of 2 per cent annually.

However, the government has said pensioners will not have to pay back the annual increments they have enjoyed over the last 10 years.

Budget 2024 is scheduled to be tabled in the Dewan Rakyat next month.