Government gets to stay order for RM1.7 billion in pension payment

Judge Datuk Amarjeet Singh decided after hearing the submissions by Senior Federal Counsel Ahmad Hanir Hambaly @ Arwi, representing the government and the Director-General of the Public Service, and lawyer Datuk Dr Abd Shukor Ahmad, representing Aminah Ahmad.

"After considering the affidavits and submissions from both parties, I find that there are special circumstances to allow the stay. There is no order as to costs," said the judge.

Meanwhile, the court dismissed the respondent's application to stay the decision.

The government filed the stay application against a High Court decision which allowed Aminah's judicial review and ordered the Public Service Department (PSD and the government to pay the pension arrears within three months, starting Jan 16.

Ahmad Hanir, in his submission, said that the payment of the pension arrears, starting January 2022, is estimated at RM1.7 billion and to be disbursed to 531,976 pensioners.

He said recalculations are necessary to align the pensions accordingly.

"It is undeniable that the 531,976 pensioners reside in various locations, in Malaysia and abroad. If the respondent succeeds in the appeal at the Court of Appeal, there is a risk that the respondent will not get the additional pension payment," he said and requested the application for a stay of the High Court order dated Jan 16 be allowed.

Abd Shukor, who objected to the stay application, said that the payment of pension arrears is a legal obligation and not a waste of time, cost or manpower.

"The prospect of success in the appeal is still speculative and cannot be used as a reason to withhold the payment of the pension arrears because any administrative burden lies entirely with the respondent and should not be used to prejudice the rights of the applicant (Aminah) and other pensioners," he said.