Don’t forget pensioners in 2019 Budget

WE, a group of government pensioners and former trade union leaders, call on the new government to help pensioners who are facing financial difficulties with their meagre monthly pensions due to the high cost of living.

The main cause of pensioners’ hardship is the previous administration. It had forgotten the promise made to pensioners in 1996. The pension calculation on the full period of service, which was approved in 1996, was withheld due to the economic downturn from 1997 to 1998. It was promised that once the economy improved, pensioners would be paid their dues, but it has been more than 20 years and nothing has been done.

The British introduced the Pension Ordinance in 1951, in which the formula for calculating gratuity and pension was based on the full period of service. After independence in 1957 and the formation of Malaysia in 1963, the 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 gratuity and pension 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, Government Pensioners’ Association and government pensioners, in March 1994, a formula for calculating gratuity and pension on the full period of service was discussed and approved at the Third National Joint Council Meeting on March 28 and 29, 1994, in Kota Baru, Kelantan.

Subsequently, RM943 million was allocated for pension adjustment and was duly approved by the Finance Ministry and cabinet. In 1996, the Public Services Department issued a circular, in which the formula for calculating gratuity and pension on the full period of service was approved and backdated to Jan 1, 1995.

Although the gratuity calculated on the full period of service was implemented and paid to pensioners, backdated to Jan 1, 1995, unfortunately, the pension calculated based on the full period of service, backdated to Jan 1, 1995, was withheld because of the economic downturn then. Twenty-three years have passed and pensioners are still waiting.

In 2008, the fifth prime minister generously increased the limit on period of service, from 25 years to 30 years, with effect from Jan 1, 2009. In the past 23 years, pension payments have been reduced by nearly 50 per cent because about 10 major government departments have been privatised.

Moreover, during this 23-year wait, nearly 50 to 60 per cent of pensioners who were waiting for the implementation of the revised formula are dead and gone.

We, the remaining pensioners, are not asking the government for anything new. We are only asking that the promise made 23 years ago be fulfilled — pay back what is due to pensioners — the allocated amount of RM943 million for the pension adjustment.

Pensioners have given the best part of their working lives to the government. They should be treated fairly when they are facing difficulties.

We appeal to the prime minister and the government to increase by 10 per cent our monthly pension, and increase the annual increase of pension from the current two per cent to five per cent in the 2019 Budget.

We pray and hope the new government will consider our appeal sympathetically and approve our claim. Thank you. Representatives of Government Pensioners’ Association and former general secretaries of National Joint Government Clerical and Allied Council Professional Group Services Union

Government pensioner, former deputy president, Congress of Unions of Employees in the Public and Civil Services