SUBANG JAYA: The government has agreed to continue providing the Special Recognition for Retirees (PKKP) aid to retirees and derivative pension recipients who have previously benefited from it.
Prime Minister Datuk Seri Anwar Ibrahim said this was to ensure they receive a higher pension rate to safeguard their well-being in facing the current living costs.
The PKKP means that the two per cent annual pension increments enjoyed by retirees would be maintained.
The Federal Court ruled that Sections 3 and 7 of the Pensions Adjustment (Amendment) Act 2013 were null and void, and therefore, the law before the amendment is applicable by itself for pension adjustment.
This means that pension payments for civil servants who retired before 2013 to be reverted to the December 2012 amount while those who retired from 2013 onwards would have their pension payments reverted to the original amount at the time of their retirement.
"As a commitment to ensuring the welfare of retirees and derivative pension recipients, the Cabinet yesterday, has agreed to continue the PKKP provision for retirees and derivative pension recipients who have previously received PKKP.
"This is to ensure they receive a higher amount to safeguard their welfare in addressing current living costs.
"This demonstrates the Madani's government concern, in line with the concept of Ihsan (compassion and benevolence)," he said at a press conference, here, today.
Meanwhile, Anwar said the Public Service Remuneration System (SSPA), effective Dec 1, includes the adjustment of pensions for retirees and derivative pension recipients.
This is in line with Section 3 of the Pension Adjustment Act 1980.
"The pension amount will be adjusted based on the percentage of salary adjustments to the retirees' final salary according to their respective service groups in phases on Dec 1 (this year) and Jan 1, 2026," he said.
On Aug 16, he announced that civil servants in the implementing and professional group will receive a 15 per cent salary increment effective Dec 1.
Anwar, who is also the finance minister, said civil servants in top management and professional roles will see an increase of seven per cent.
The increment, he said, will be implemented in two phases: the first phase in December this year and the second phase in January 2026.
He said retirees and derivative pension recipients would receive pension adjustments with the same percentage increments as active civil servants, to be implemented in two phases.