PENSIONS ACT 1951 (REVISED - 2022)

Pensions LAWS OF MALAYSIA Act 841 PENSIONS ACT 1951 (Revised—2022) REVISED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 2022 1 2 Laws of Malaysia Act 841 PENSIONS ACT 1951 Revised up to … … Date of publication in the Gazette of this revised edition … … 1 November 2022 … … 7 November 2022 Date appointed for coming into operation of this revised edition pursuant to paragraph 6(1)(xxiii) of the Revision of Laws Act 1968 [Act 1] … … … … 15 November 2022 First enacted in 1951 as Ordinance No. 1 of 1951 Pensions 3 LAWS OF MALAYSIA Act 841 PENSIONS ACT 1951 ARRANGEMENT OF SECTIONS Part I PRELIMINARY Section 1. Short title 3. Application 2. Interpretation Part II PROVISIONS RELATING TO PENSIONS 4. Pensions, etc., to be charged on Federal Consolidated Fund 6. Service not accounting for pension, etc. 5. 7. 8. 9. 10. Pensions, etc., not an absolute right Grant of pension, etc. Retirement in the public interest Compulsory retirement Maximum pension from public service Part III CESSATION OF PENSIONS, GRATUITY OR OTHER ALLOWANCE 11. Pension, etc., to cease on bankruptcy 13. Pension, etc., may cease on accepting employment in certain companies, or in engaging in certain occupations for gain 12. Pension, etc., to cease on conviction 4 Laws of Malaysia Act 841 Part IV PROVISIONS RELATING TO DERIVATIVE PENSION OR GRATUITY Section 14. 15. Derivative pension or derivative gratuity where officer dies in service or after retirement Cessation of derivative pension Part V GENERAL 16. Pension, etc., not to be assignable, etc. 18. Power to make regulations 17. Liability of pensioners to be called upon to take further employment Part VI REPEAL AND SAVING PROVISIONS 19. Repeal and saving Schedule 5 Pensions LAWS OF MALAYSIA Act 841 PENSIONS ACT 1951 An Act to regulate the granting of pensions, gratuities and other allowances to officers in the public service of the Federation of Malaya. [27 February 1951] Part I PRELIMINARY Short title 1. This Act may be cited as the Pensions Act 1951. Interpretation 2. In this Act, unless the context otherwise requires— “Federal officer” means— (a) an officer in the service of the Government of the Federation whose conditions of employment do not involve a liability to serve under the Government of a State; and (b) an officer in the service of the Government of the Federation or of the Government of a State whose conditions of employment involve liability to serve under one or more of the Governments of a State; 6 Laws of Malaysia Act 841 “Federation” means the Federation established in accordance with the Federation of Malaya Agreement 1957; “last drawn salary” means the last drawn monthly salary payable in accordance with the salary scales under the revision of salaries and terms and conditions of service pursuant to the recommendations of the Report of the Cabinet Committee of 1977, or any changes of salary scales under any revision thereafter; “officer” means a Federal or State officer and includes a police officer of any rank; “other public service” means public service not under the Government of the Federation or under the Government of any State in the Federation; “pensionable officer” means an officer who has been emplaced on the pensionable establishment or deemed to have been so emplaced; “public service” means service in a civil capacity under the Government of the Federation, or any State Government in the Federation, in any statutory or local authority or in such other service as the Yang di-Pertuan Agong may determine to be “public service” for the purpose of this Act; “public service in the Federation” means public service under the Government of the Federation or any State Government or service in any statutory or local authority or such other service as the Yang di-Pertuan Agong may determine to be “public service in the Federation” for the purpose of this Act; “salary” means— (a) in respect of public service in the Federation a monthly salary payable in accordance with the salary scale attached to the office in which an officer is serving or has served together with any pensionable allowance; and (b) in respect of other public service, emoluments which count for pension in accordance with the law or regulations in force for such service; Pensions 7 “State officer” means an officer in the service of the Government of a State whose conditions of employment involve liability to serve only in that State; “statutory or local authority” means a statutory or local authority within the purview of the revision of salaries and terms and conditions of service in statutory and local authorities pursuant to the recommendations of the Royal Commission appointed by the Yang di-Pertuan Agong. *Application 3. (1) This Act shall apply to all officers— (a) appointed to the public service in the Federation after the commencement of this Act; (b) in the public service in the Federation at the commencement of this Act; and (c) who have been transferred from any territory now comprised in the Federation to any other public service before the commencement of this Act. (2) For the purpose of paragraph (1)(c), nothing in this Act or in any regulation made under this Act shall— (a) diminish the amount of pension, gratuity, other than a gratuity under section 14 or other allowance for which an officer in the public service in the Federation at the commencement of this Act would have been eligible had this Act not been enacted; or (b) adversely affect the conditions which would have been applicable to that pension, gratuity or other allowance. *NOTE—see s.28 of the Pensions Act 1980 [Act 227]. 8 Laws of Malaysia Act 841 (3) In the application of this Act to officers who were officers on the Malayan Establishment within the meaning of section 2 of the *Malayan Establishment Pensions Ordinance 1948 [M.U. Ord. No. 4 of 1948] immediately before 1 July 1954, the following provisions apply: (a) where any such officer was in the public service in the Federation immediately before 1 July 1954, all rights accrued to that officer in respect of pensions, gratuities or other allowances under the Malayan Establishment Pensions Ordinance 1948 or the Minutes made under that Ordinance shall continue to subsist under this Act as if the service in respect of which such rights accrued had been public service in the Federation; and (b) nothing in this Act or in any regulation made under this Act shall— (i) diminish the amount of a pension, gratuity or allowance for which any officer referred to in paragraph (a) would have been eligible under the Malayan Establishment Pensions Ordinance 1948 or the Minutes made under the Ordinance had that Ordinance not been repealed and had that officer continued to serve on the Malayan Establishment; or (ii) adversely affect conditions that would have been applicable to such pension, gratuity or other allowance under such Ordinance or Minutes. Part II PROVISIONS RELATING TO PENSIONS Pensions, etc., to be charged on Federal Consolidated Fund 4. The sums of money granted by way of pension, gratuity or other allowance in accordance with this Act shall be charged on and paid out of the Federal Consolidated Fund. *NOTE—Malayan Establishment Pensions Ordinance 1948 has since been repealed by Pensions (Amendment) Ordinance, 1954 [Ord. No. 23 of 1954]—see s.3 of Ord. No. 23 of 1954. Pensions 9 Pensions, etc., not an absolute right 5. (1) No officer shall have an absolute right to compensation for past services or to any pension, gratuity or other allowance under this Act, and nothing in this Act shall limit the right of the Government of the Federation or of the Government of any State to dismiss any officer without compensation. (2) Where the Yang di-Pertuan Agong is satisfied that an officer has been guilty of negligence, irregularity, or misconduct, the Yang di-Pertuan Agong may reduce or altogether withhold the pension, gratuity or other allowance for which such officer would have become eligible but for this section. Service not counting for pension, etc. 6. (1) No pension, gratuity or other allowance shall be granted under this Act to any officer— (a) in respect of any service while on probation or agreement, unless, without break of service, he is confirmed in his appointment in the public service in the Federation and emplaced on the pensionable establishment or in an office in any other public service which is at the time of confirmation pensionable in accordance with the law and regulations in force in such service; (b) in respect of any service on leave without salary other than leave without salary granted on grounds of public policy; (c) in respect of any service during which he is undergoing training and for which he is paid only an allowance; or (d) in respect of any service during which the officer was liable to contribute to the Employees Provident Fund established under the *Employees Provident Fund Act 1951 *NOTE—Employees Provident Fund Act 1951 [Act 272] has since been repealed by Employees Provident Fund Act 1991 [Act 452]—see s.75 of Act 452. 10 Laws of Malaysia Act 841 [Act 272] or to any other provident fund established under any written law or otherwise except upon condition that there shall be first paid to the Government a sum equal to the total amount of the contributions paid by the Government or employer to those funds on account of the officer in respect of such service, together with the interest on the contributions. (2) For the purpose of paragraph (1)(a), any interruption in service caused by a temporary suspension of employment not arising from misconduct or voluntary resignation shall be disregarded. Grant of pension, etc. 7. (1) No pension, gratuity or other allowance shall be granted under this Act to any officer until he has retired from the public service. (2) No pension, gratuity or other allowance shall be granted under this Act to any officer who has retired from the public service in the Federation unless the officer has retired— (a) on or after attaining the age of fifty-five years; (b) subject to the prior consent of the Yang di-Pertuan Agong in the case of a Federal officer, or of the Ruler or Yang di-Pertua Negeri, as the case may be, of the State in the case of a State officer, having been obtained to his retiring from the public service, on or after attaining the age of— (i) fifty years, in the case of a male officer other than a male officer of the categories referred to in subparagraph (ii); or (ii) forty-five years in the case of a female officer, an officer of the Fire Services holding the rank of Sub-Officer and below, a police officer below the rank of Assistant Superintendent of Police, a prison officer below the rank of Superintendent and a male nurse at a mental hospital; Pensions 11 (c) on medical evidence to the satisfaction of the Yang di-Pertuan Agong in the case of a Federal officer, or of the Ruler or Yang di-Pertua Negeri, as the case may be, of the State in the case of a State officer that he is incapable of discharging the duties of his office, by reason of infirmity of mind or body likely to be permanent; (d) on the abolition of his office; (e) on the termination of his employment in the public interest; (f) on compulsory retirement for the purpose of facilitating improvement in the organization of the department to which he belongs by which greater efficiency or economy may be effected; or (g) on the ground of national interest at the instance of the Government. Retirement in the public interest 8. (1) Where an officer’s services are terminated on the ground that, having regard to the conditions of the public service, the usefulness of the officer to the public service and all the other circumstances of the case, such termination is desirable in the public interest, and a pension, gratuity or other allowance cannot otherwise be granted to him under