AMINAH AHMAD v. THE GOVERNMENT OF MALAYSIA & ANOR
COURT OF APPEAL, PUTRAJAYA
VAZEER ALAM MYDIN MEERA JCA
ABU BAKAR JAIS JCA
DARRYL GOON SIEW CHYE JCA
[CIVIL APPEAL NO: W-01(A)-77-02-2020]
14 JANUARY 2022
[2022] CLJ JT (1)

Abstract – Any amendment or adjustment made to any pension legislation must not result in any ‘less favourable’ situation for pensioners, lest it runs the risk of contravening art. 147 of the Federal Constitution (FC) and renders both the amended and amending provisions null and void. The amendments to ss. 3 and 6 of the Pensions Adjustment Act 1980 as made by ss. 3 and 7 of the Pensions Adjustment (Amendment) Act 2013 herein by substituting an adjustment based on a salary revision for Government employees with a standard two percent annual increment to the pension payable offends art. 147 of the FC and the constitutional guarantee and protection provided therein. It is to be noted that for art. 147 to be contravened, it is not necessary that the pensioner must suffer actual loss or damage. The existence of a risk that a less favourable situation might arise and the mere possibility that it could arise, as happened here, suffices in establishing that a less favourable situation has indeed already existed and come about.

ADMINISTRATIVE LAW: Public services – Gratuity and pension – Pension legislation – Adjustments – Validity – Whether amendments resulted in ‘less favourable’ situation for pensioners – Whether contravened art. 147 of the Federal Constitution – Whether null and void and unconstitutional – Preceding scheme of pension adjustments – Whether to be revived – Pensions Adjustment Act 1980, ss. 3, 6 – Pensions Adjustment (Amendment) Act 2013, ss. 3, 7 – Federal Constitution arts. 4(1) & 147