PENSIONS ADJUSTMENT ACT 1980

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 238 PENSIONS ADJUSTMENT ACT 1980 As at 1 February 2013 2 PENSIONS ADJUSTMENT ACT 1980 … … … 31 July 1980 Date of publication in the Gazzette … … … 7 August 1980 Latest amendment made by Act A1447 which came into operation on … … … … … 1 January 2013 Date of Royal Assent … PREVIOUS REPRINTS First Reprint … … … 2001 Second Reprint … … … 2006 3 LAWS OF MALAYSIA Act 238 PENSIONS ADJUSTMENT ACT 1980 ARRANGEMENT OF SECTIONS Section 1. Short title, commencement and application 2. Interpretation 3. Adjustment of pensions and other benefits of officers and dependants 3A. Adjustment of pensions, disability pensions, retiring allowances or injury allowances 3B. Adjustment of lowest pensions and other benefits 4. Adjustment of derivative pension or derivative retiring allowance granted under any other written law 5. Grant and adjustment of derivative pensions or derivative retiring allowances for certain dependants under old scheme 6. (Deleted) 7. (Deleted) 8. Lowest pension, etc., for full service 9. (Deleted) 10. Adjustment of dependant’s pension 10A. Amendment of maximum reckonable service 11. Disability pension, etc., to be in addition to pension or other benefit 12. (Deleted) 13. Where information not sufficient to determine amount of pension, etc. 13A. Director General may re-determine proper amount of pension or other benefit 14. Allowances payable under administrative arrangements to cease 15. Restoration of pension 4 Laws of Malaysia Section 16. Powers to be exercised by Director General 17. Regulations FIRST SCHEDULE (Deleted) SECOND SCHEDULE (Deleted) THIRD SCHEDULE (Deleted) ACT 238 5 LAWS OF MALAYSIA Act 238 PENSIONS ADJUSTMENT ACT 1980 An Act to provide for the adjustment of pensions and other benefits of officers in the public service and in statutory and local authorities and of the dependants of such officers, for the granting and adjustment of pensions and other benefits of the dependants of certain categories of such officers, and for matters related thereto. [1 July 1980] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: Short title, commencement and application 1. (1) This Act may be cited as the Pensions Adjustment Act 1980 and shall be deemed to have come into force on 1 July 1980. (2) Subject to this section, this Act shall apply throughout Malaysia in respect of — (a) officers who on retirement receive or are entitled to receive pensions or other benefits under any written law; (b) the dependants of officers referred to in paragraph (a) who, on the death in service or in retirement of the officers concerned, receive or are entitled to receive pensions or other benefits under any written law; (c) the dependants of officers referred to in paragraph (a) being dependants who, prior to the coming into force of this Act, were not entitled to receive pensions or other benefits under any written law; and 6 Laws of Malaysia ACT 238 (d) the dependants of officers who had died or die in service under the old scheme where the officers had been or have been confirmed in their appointments and, in respect of pensionable officers, emplaced on the pensionable establishment in accordance with the written law or the terms and conditions of service applicable to their case, being dependants who, prior to the coming into force of this Act, were not entitled to receive pensions or other benefits under any written law. (3) (Deleted by Act A1345). (4) (Deleted by Act A1345). Interpretation In this Act, unless the context otherwise requires — 2. “child” means a child of a deceased officer — (a) who is a child under twenty-one years of age and includes — (i) a posthumous child, a dependent step-child and an illegitimate child of the officer; and (ii) a child adopted by the officer under any written law relating to adoption or under any custom or usage, on satisfactory proof of such adoption; and (b) who is a child of any age and is mentally retarded or physically and permanently incapacitated and is incapable of supporting himself; “current salary scale” means the latest salary scale which is, on or after the coming into force of this Act, applicable to officers of the public service and employees of statutory and local authorities to whom the revision of salaries made by the Federal Government with effect from 1 January 1976, or any other subsequent revision thereof made by the Federal Government from time to time, is applicable; “dependant” means a widow, widower, child, mother or father of a deceased officer; Pensions Adjustment 7 “Director General” means the Director General of the Public Services; “last drawn salary” means — (a) the actual last drawn monthly substantive salary of an officer before his death or retirement; or (b) where it is to his advantage, in the case of an officer who dies or retires before being confirmed in a second or subsequent appointment which he holds at the time of death or retirement, the last drawn monthly substantive salary of the last appointment in which he had been confirmed prior to his death or retirement, inclusive of any notional increments in salary that he would have been entitled to, in accordance with the service principles applicable to his case, were he to have reverted to that last appointment; or (c) in the case of a person for the portion of whose service in any of the territories which constitute Malaysia the Federal Government is responsible for the payment of pension or other benefit under any written law, the actual last drawn monthly substantive salary of that person when he so was last in the service of that territory; or (d) in the case of an officer referred to in regulation 22 of the Pensions Regulations 1957 [L.N. 233/1957], the last drawn monthly substantive salary of the office for which he opts or may have opted for the purpose of computing his reckonable service under that regulation; and where such officer or person is or was in receipt of or entitled to receive any pensionable allowance in the public service or in the service of a statutory or local authority or, in the case of a person referred to in paragraph (c), in the service of any of the territories which constitute Malaysia, the pensionable allowances shall form part of his last drawn salary; “officer” means an officer of the public service or an employee of any statutory or local authority who, prior to his retirement or death, was serving in Malaysia or in any of the territories which presently constitute Malaysia; “old scheme” means the appropriate scheme pertaining to the salaries and terms and conditions of service which is applicable to officers of the public service and employees of statutory and local authorities to whom the revision 8 Laws of Malaysia ACT 238 of salaries and terms and conditions of service made by the Federal Government with effect from 1 January 1976, or any other subsequent revision of salaries, or the terms and conditions of service, or both made by the Federal Government from time to time, is not applicable; “pension or other benefit” includes pension, retiring allowance, annual allowance, disability pension, injury allowance, derivative pension, derivative retiring allowance and dependant’s pension granted under any other written law and adjusted under this Act, or granted and adjusted under this Act, as the case may be; “pensionable officer” means an officer who has been emplaced on the pensionable establishment or conferred pensionable status or who on retirement or death is deemed to be pensionable under any written law; “public service” means — (a) the judicial and legal service; (b) the general public service of the Federation; (c) the police force; (d) the railway service; (e) the education service; (f) the joint public services mentioned in Article 133 of the Federal Constitution; (g) the public service of each State; (h) the Parliamentary Service referred to in the *Parliamentary Service Act 1963 [Act 394]; and (i) such other service as the Yang di-Pertuan Agong may by order in the Gazette determine to be public service for the purposes of this Act; *NOTE— Parliamentary Service Act 1963 [Act 394] has since been repealed by paragraph 7(d) of Act A837— see also section 7 for Status of members of Parliamentary Service. Pensions Adjustment 9 “reckonable service” means any service of an officer in Malaysia or in any of the territories which presently constitute Malaysia which has been used in the computation of the pension or other benefits of the officer on his retirement or of his dependants upon his death; “retiring allowance” includes an annual allowance paid or payable to an officer on retirement on a non-pensionable appointment; “statutory or local authority” means a statutory authority or local authority established under any written law relating to a statutory authority or local authority; “written law” means any written law relating to the pensions and other benefits of officers in the public service or of employees of statutory and local authorities, and of their dependants, and includes this Act. Adjustment of pensions and other benefits of officers and dependants 3. (1) Pensions and other benefits granted to officers and their dependants under any written law shall be adjusted annually by an increment of two percent in accordance with the provisions of this Act and shall be paid or be payable with effect from January of each year. (2) Notwithstanding subsection (1), where the application of the specified rate of increment would result in a situation that is less favourable to an officer appointed before the coming into force of this section, the Yang di-Pertuan Agong may by order in the Gazette prescribe an appropriate higher percentage of increment to be applied in such case. (3) For the purpose of an order under subsection (2), the Yang di-Pertuan Agong may prescribe— (a) different percentages of increment for different categories of recipients; (b) that the higher percentage of increment shall only apply for a specified year or any part thereof, and in such case, the date on which the adjustment shall be payable. 10 Laws of Malaysia ACT 238 Adjustment of pensions, disability pensions, retiring allowances or injury allowances 3A. (1) Pensions, disability pensions, retiring allowances or injury allowances received by an officer under any written law shall be adjusted in accordance with subsection 3(1). (2) The amount of pension, disability pension, retiring allowance or injury allowance to be used as the basis for the first of the adjustments under subsection 3(1)— (a) in the case of an officer who retired before or on 1 January 2012, shall be the amount of pension, disability pension, retiring allowance or injury allowance which had been adjusted on that date; (b) in the case of an officer who retired on or after 2 January 2012, shall be the amount of pension, disability pension, retiring allowance or injury allowance which had been granted to the officer. (3) The adjustment referred to in subsection (1) is subject to any higher percentage of increment which may be made under subsection 3(2). Adjustment of lowest pensions and other benefits 3B. Where an officer is receiving the lowest amount of pension or other benefit payable pursuant to section 8, the said lowest amount shall be used as the basis for the first of the adjustments under subsection 3(1). Adjustment of derivative pension or derivative retiring allowance granted under any other written law 4. (1) Any derivative pension or derivative retiring allowance received under any other written law shall be adjusted in accordance with subsection 3(1). (1A) The amount of derivative pension or derivative retiring allowance to be used as the ba