KUALA LUMPUR – More than 2,000 military veterans filed an application at the high court here to register an arbitration tribunal’s decision for backdated pension payments after Putrajaya failed to challenge the award.
The 2,332 military personnel named the Armed Forces Council, Defence Ministry, Finance Ministry, and federal government as respondents.
Initially, the veterans filed a claim against the respondents at the Kuala Lumpur Arbitration Court on May 15, 2023.
They contend that after the Pensions Adjustment (Amendment) Act 2013, retired members of the armed forces only saw a 2% annual increase in their pension payments.
It was argued that the government should not apply the Pensions Adjustment (Amendment) Act 2013 for matters pertaining to military pensions as it falls under the Armed Forces Act 1972.
“The interpretation provision under the Pensions Act 1980 and the Pensions Adjustment Act 1980 does not include armed forces personnel as members of the public service,” the statement of claim reads.
Attempting to illustrate losses suffered, arbitration court documents show that the veterans provided nine examples of backdated pensions lost by the retirees since 2013, with the amounts ranging from RM64,063.78 to RM185,322.33.
Given that there are 2,332 military veterans named, Scoop estimates that their claim for backdated pension payments could range from RM150 million to RM430 million.
The veterans also sought an order for the government to continue increasing pensions as was done pre-2013.
However, despite claiming that a notice regarding the arbitration proceedings was served to the respondents, the government failed to respond or reply.
After trial on November 30, 2023, the Kuala Lumpur Arbitration Court decided on an award favourable to the veterans which was later sent to the Attorney-General’s Chambers (AGC).
However, the AGC in a reply letter stated that they did not receive any document or information related to the proceedings and there was no agreement to conduct arbitration proceedings between parties.
Due to the government’s failure to challenge the arbitration award dated November 30, 2023 via judicial review, the veterans proceeded to file an originating summons at the Kuala Lumpur High Court on May 13. – May 25, 2024