1 -1. Short title, commencement and application.

(1) This Act may be cited as the Pensions Adjustment Act 1980 and shall be deemed to have come into force on l 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

(d) the dependants of officers who had died or die in service under the old scheme where the officer

2 -2. Interpretation.

"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 dependant 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;

"corresponding last drawn salary" (Deleted by Act A1447:s.2)

"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 fro

3 -3. Adjustment of pensions and other benefits of officers and dependants.

(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

3A -3A. Adjustment of pensions, disability pensions, retiring allowances or injury allowances.

(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).

3B -3B. Adjustment of lowest pensions and other benefits.

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).

[Ins. Act A1447:s.4]

4 -4. Adjustment of derivative pension or derivative retiring allowance granted under any other written law.

(1) Any derivative pension or derivative retiring allowance received under any other written law shall be adjusted in accordance with subsection 3(1).

[Subs. Act A1447:s.5]

(1A) The amount of derivative pension or derivative retiring allowance to be used as the basis for the first of the adjustments under subsection 3(1):

(a) in the case of a recipient who received the derivative pension or derivative retiring allowance before or on 1 January 2012, shall be the amount of derivative pension or derivative retiring allowance which had been adjusted on that date;

(b) in the case of a recipient who received the derivative pension or derivative retiring allowance on or after 2 January 2012, shall be the amount of derivative pension or derivative retiring allowance which had been granted to the recipient.

[Ins. Act A1447:s.5]

5 -5. Grant and adjustment of derivative pensions or derivative retiring allowances for certain dependents under old scheme.

(1) Notwithstanding any other written law to the contrary but subject to this Act, where an officer had died or dies:

(a) in service under the old scheme and:

(i) he had been or has been confirmed in his appointment and emplaced on the pensionable establishment; or

(ii) he would have been entitled on retirement to an annual allowance, also called a retiring allowance;

or

(b) in retirement under the old scheme and he was in receipt of or would have been entitled to receive a pension or an annual allowance, also called a retiring allowance,

in accordance with the written law or the terms and conditions of service applicable to his case, his widow or child, or both widow and child, if not in receipt of or not entitled to receive any derivative pension or derivative retiring allowance under any other written law, shall, upon the coming in

6 -6. (Deleted)

(Deleted by Act A1447:s.7)

7 -7. (Deleted).

(Deleted by Act A568:s.6)

8 -8. Lowest pension, etc., for full service.

(1) Notwithstanding any other written law to the contrary but subject to the Schedules, where any pension or other benefit granted and adjusted under this Act or granted under any other written law and adjusted under this Act is calculated on the basis of reckonable service of not less than twenty-five years:

(a) the lowest amount of pension or derivative pension payable after adjustment shall not be less than one hundred and eighty ringgit per month;

(b) the lowest amount of retiring allowance or derivative retiring allowance payable after adjustment shall not be less than three-quarters of one hundred and eighty ringgit per month.

(2) The Yang di-Pertuan Agong may by order in the Gazette increase the lowest amount of pension or other benefit payable pursuant to this section.

9 -9. (Deleted)

( Deleted by Act A1447:s.9 )

10 -10. Adjustment of dependant's pension.

(1) Where a dependant's pension is granted under any written law, it shall be adjusted in accordance with subsection 3(1) but the factor applicable shall be the factor applicable under that written law.

(2) Where the factor referred to in subsection (1) changes according to the eligibility of the dependant as specified under that written law, the dependant's pension shall be adjusted based on the notional salary as determined under subsection (3) using the new factor applicable under that written law.

(3) The notional salary:

(a) in the case of a dependant who received the dependant's pension before or on 1 January 2012, shall be the amount of the corresponding last drawn salary received by an officer on 1 January 2012 which has been calculated with an increment of two percent annually up to the year when the factor changes;

(b) in the case of a dependant who received the dependant's pensio

10A -10A. Amendment of maximum reckonable service.

(1) Where the maximum reckonable service under any written law is amended, the adjustment in accordance with subsection 3(1) to the pension or other benefits shall be modified accordingly and shall be based on the amount of the pension or other benefits calculated based on the notional salary as determined by the Director General through the formula prescribed under the written law.

(2) In determining the calculation of the notional salary for the purpose of subsection (1), the Director General may use the calculation of notional salary as specified in subsection 10(3) with necessary modifications.

[10A. Ins. Act A1447:s.11]

11 -11. Disability pension, etc., to be in addition to pension or other benefit.

Notwithstanding any written law to the contrary, the disability pension or injury allowance and dependant's pension referred to in sections 3A and 10 shall be paid or be payable in addition to any pension or other benefit which is granted under any other written law and adjusted under this Act or granted and adjusted under this Act, as the case may be.

[Am. Act A1447:s.12]

12 -12. (Deleted).

(Deleted by Act A568:s.8)

13 -13. Where information not sufficient to determine amount of pension, etc.

Where, for the purpose of granting and adjusting or adjusting any pension or other benefit under this Act, the Director General is not in possession of sufficient information to enable him to determine the amount of pension of other benefit payable, the amount payable shall, in the case of:

(a) a pension or retiring allowance, be fifty per cent of the highest pension or retiring allowance payable to an officer of an equivalent grade on the current salary scale as the officer whose pension or retiring allowance is to be adjust under this Act;

(b) a derivative pension or derivative retiring allowance, be of the same amount as the pension or retiring allowance payable under paragraph (a) ;

(c) a disability pension or an injury allowance, be fifty per cent of the maximum disability pension or injury allowance payable, calculated on the highest factor provided under the written law unde

13A -13A. Director General may re-determine proper amount of pension or other benefit.

(1) Where any pension or other benefit is granted under any other written law and adjusted under this Act or granted and adjusted under this Act in the circumstances referred to in section 13 and subsequent thereto the Director General receives such information as is sufficient to enable him to re-determine the proper amount of pension or other benefit payable, he shall re-determine the same.

(2) Where, upon re-determination under subsection (1), the proper amount of pension or other benefit payable is found to be:

(a) less than the amount paid under section 13, the proper amount shall be payable instead with effect from the date of re-determination and the amount overpaid shall be deemed to have been overpaid by mistake of fact but shall, however, not be recoverable from the person concerned; or

(b) more than the amount paid under section 13, the proper amount shall be payable instead together wit

14 -14. Allowances payable under administrative arrangements to cease.

(1) Notwithstanding anything to the contrary but subject to this Act, all allowances payable under any administrative arrangements (in addition to pensions and other benefits granted under this Act or granted and adjusted under this Act), shall, upon the coming into force of this Act, cease to be payable.

(2) Any allowance payable to the holder of a medal under Force Order No. 627/56 shall cease to be payable only upon the death of the officer concerned.

(3) Where the total amount of any pension or other benefit granted under any other written law and adjusted under this Act or granted and adjusted under this Act is less than the total amount of the pension or other benefit currently receivable, the total amount of pension or other benefit payable under this Act shall be equal to the total amount currently receivable.

(4) In subsection (3), the expression "the total amount currently receivable" means the pension or other benefit

15 -15. Restoration of pension.

(1) Where, under any written law, an officer has been granted a reduced pension by virtue of his option for a commuted pension, such office shall, on the expiration of the period of twelve and a half years from the date of his retirement, be eligible to have his pension restored; provided that such restoration:

(a) shall not be made earlier than 1 January 1973; and

(b) shall not be applicable in the case of any pension paid after the adjustment made under this Act.

(2) Where the pension of any officer as referred to in subsection (1) has been restored after the expiration of the period of twelve and a half years from the date of his retirement but before the coming into force of this Act, such restoration shall be deemed to have been properly and legally made.

16 -16. Powers to be exercised by Director General.

All powers under this Act shall be exercisable by the Director General or any officer authorised by him in writing.

17 -17. Regulations.

The Yang di-Pertuan Agong may make regulations for the purpose of carrying out or giving effect to this Act.