Ex Servicemen Not Entitled To Pension Adjustment Court Of Appeal Hears

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The government is appealing a High Court order handed down last year which directed it to take all necessary steps to adjust the pensions of armed forces personnel who retired before Jan 1, 2013.
PUTRAJAYA: Former servicemen who retired before Jan 1, 2013 are not entitled to any further pension adjustments as there has been no revision of salaries since then, the Court of Appeal heard today.
Senior federal counsel Ahmad Hanir Hambaly, representing the government, said the servicemen had benefitted from five revisions between 2000 and 2012.
“During these revisions, the pensions of the retirees were also adjusted,” he told a three-member bench chaired by Justice Hashim Hamzah.
The appeals court is hearing the government’s appeal against a High Court ruling handed down last year.
The High Court had declared that the government was in breach of Articles 8 and 137 of the Federal Constitution, read with Section 187 of the Armed Forces Act 1972, by failing to adjust the pensions of all armed forces personnel before Jan 1, 2013.
The High Court further ordered that the government take the necessary steps to adjust the pensions of the retired personnel.
The case had been brought by 50 armed forces personnel, who retired in 2012 or earlier, against the government, the Armed Forces Council, and two other parties.
Hanir said the general principle is that pensions are only adjusted when there is a salary revision.
He said the government had given equal treatment to all the pensioners irrespective of whether they had retired before or after Jan 1, 2013, as all pension adjustments were based on Regulation 54 read with Regulation 51 of the Regular Forces (Pensions, Gratuities and Other Benefits) Regulations 1982.
Hanir, who was assisted by federal counsel M Kogilambigai, said the High Court judge had misinterpreted the contents of a 2013 circular in coming to his decision.
“There is no breach of Article 8, 137 or the principle of legitimate expectations,” said Hanir, in asking that the appeal be allowed.
In reply, lawyer Haniff Khatri Abdulla, representing the army veterans, said Hanir’s arguments were overly simplistic.
He said the armed forces had in 2013 created a scheme that altered the requirements of the different ranks.
The revisions were designed for those in the force and for future entrants, said Haniff.
“Those still serving were given the option to remain in the current scheme or accept the new scheme,” he said, adding that the scheme was approved by the Armed Forces Council on May 29, 2013.
Haniff said the High Court had arrived at the correct finding and called for the appellate court to maintain the ruling.
Hashim, who sat with Justices Wong Kian Kheong and Ismail Brahim, deferred the court’s ruling to a date to be fixed. - FMT

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