Pensioners appeal for their dues
WE, a group of government pensioners and former trade union leaders, have submitted a memorandum of appeal to the Chief Secretary to the Government and the Finance Minister to help pensioners who are facing financial difficulties due to meagre pensions and the increasing cost of living.
The main cause of pensioners’ hardship is the fact that previous administrations forgot a promise made to government pensioners in 1996. The pension calculation based on the full period of service was approved in 1996 but was withheld due to the Asian financial crisis from 1997 to 1998. It was promised that once the economy improved, government pensioners would be paid their dues. However, it has been more than 20 years and we have not been paid.
The British colonial government introduced the Pension Ordinance in 1951, in which the formula for calculating gratuities and pensions was based on the full period of service. After independence in 1957 and the formation of Malaysia in 1963, the Malaysian government, under the fourth prime minister, introduced the Pension Act 1980, which replaced the Pension Ordinance 1951. Under the Pension
Act 1980, the formula for calculating gratuities and pensions was reduced from the full period of service to only 25 years of service. Thus, pensioners lost the full benefits provided under the British and under the first, second and third prime ministers, which should be restored in light of Article 147 (Protection of Pension Right) of the Federal Constitution.
After many appeals by trade
unions, the Government Pensioners’ Association and government pensioners, in March 1994, a formula for calculating gratuities and pensions based on the full period of service was discussed and approved at the third national joint council meeting in Kota Baru. Subsequently, RM943mil was allocated for this pension adjustment, duly approved by the Finance Ministry and the Cabinet. In 1996, the Public
Services Department issued a circular – Surat Keputusan Kerajaan Ruj: JPA(R)81/16/4 Klt.16/(43) dated Jan 30, 1996 – signed by the director-general of the Public Services Department in which the formula for calculating gratuities and pensions based on the full period of service was approved and backdated to Jan 1, 1995.
Although gratuities calculated for the full period of service, backdated to Jan 1, 1995, was implemented and paid to pensioners, the pension payment was withheld because of the economic downturn that began in 1997. More than two decades have passed and pensioners are still waiting for that payment.
In the past 25 years, government pension payments have been reduced by nearly 50% because about 10 major government departments have been privatised. Moreover, in the past 20-over years, nearly 60% to 70% of the pensioners who were waiting for the implementation of the revised formula have died.
We, the remaining pensioners, are not asking the government for anything new. We are only asking that the promise made two decades ago be fulfilled: Pay what is due to pensioners, which is the RM943mil allocated for the pension adjustment. Government pensioners have given the best part of their working lives to the government. They should be treated fairly.
Apart from getting what is owed to us, we also appeal to the prime minister and the government to increase by 10% our monthly pension, and to increase the present yearly pension from 2% to 5% in Budget 2021.
We pray and hope this government will consider our appeal sympathetically and approve our claim.
Note: Mylvaganam was formerly general-secretary, Government Clerical and Allied Services Union of Peninsular Malaysia; Mohd Jamil Ismail was formerly staff side secretary, National Joint Council for Managerial and Professional Employees; Santhanasamy was formerly deputy president, Congress of Unions of Employees in the Public and Civil Services.