Ex-senators granted bid to set aside decision over pension payments

PUTRAJAYA: Two former senators have succeeded in their appeal to set aside the High Court’s decision, which had dismissed their suit against the government over pension payments.

A three-member bench, including Court of Appeal judges Datuk Lee Swee Seng, Datuk Che Mohd Ruzima Ghazali and Datuk Azizul Azmi Adnan, unanimously allowed the appeal by Datuk Idris Buang and Datuk Seri Kamarudin Ambok as the appellants.

Reading out the decision, Justice Azizul Azmi said the court had concluded that the appellants were entitled to receive a pension equivalent to a proportion of the salaries of senators at that time.

Justice Azizul Azmi further explained that the court held the view that the Members of Parliament (Remuneration) (Amendment of First Schedule) Order 2015 (the 2015 Order) did not have retrospective effect. It could only come into force on March 4, 2015, which was the day on which the 2015 Order was gazetted.

The judge further said this was due to the existence of the accrued right of the appellants to receive a pension as a proportion of the then-current salaries of existing parliamentarians and the absence of provisions in the Members of Parliament (Remuneration) Act 1980 that would provide, whether expressly or by necessary implication, for orders made pursuant to paragraph 19A of the First Schedule to have retrospective effect.

Justice Azizul Azmi explained that, in contrast, the 2015 Amendment Act did have retrospective effect due to the powers of Parliament to legislate retrospectively. Therefore, when there was an increase in the salaries of current members of the Senate from RM4,112.79 to RM11,000, there was a corresponding increase in the pension entitlement of the appellants as of January 1, 2015.

“Starting from March 4, 2015, which is the date the 2015 Order officially came into force, any subsequent increases in the pension of the appellants would be at a rate of two per cent per annum, following the amendments to paragraph 20 of the First Schedule.

“Therefore, the appeal is allowed accordingly. We set aside the order of the court below and direct that each party bear their own costs in this appeal,” the judge said adding that the appellants argued that their pensions should be adjusted to account for the increased salaries of the members of the Senate.

The appellants are appealing the dismissal of their originating summons by the Kuala Lumpur High Court on Jan 16, 2020.

On Aug 15, 2019, the duo, representing a group of other retired senators, filed an originating summons and named the chief administrator of Parliament, the Public Service Department (PSD) directorgeneral and the government as respondents.

They filed an application to seek a declaration that they have the right to have their pensions recomputed and revised in accordance with the increased salary of Members of Parliament, pursuant to the Members of Parliament (Remuneration) (Amendment) Act 2015 (Act A1491).

According to the appellants, this amendment took effect on Jan 1, 2015.

They also seek a declaration that they are entitled to receive recomputed and revised pensions based on the substantial (about 167.45 per cent) increased salary of current serving members of the Senate/Parliament, which has been raised from the original salary of about RM4,112.79 a month to RM11,000 a month.

Additionally, they request subsequent orders directing the respondents to pay the appellants their respective recomputed and revised pensions.

The appellants were represented by counsel Krishna Dallumah, while Senior Federal Counsel Liew Horng Bin acted for the respondents. — Bernama