The High Court has ruled that pensions for retired civil servants should be adjusted based on their final salary, in line with the 2016 Public Services Department circular. This decision challenges the previous 2% flat annual increase introduced by the 2013 Pension Adjustment Act and requires the government to settle outstanding pension arrears within three months. We discuss the implications of this decision with Dr Lee Hwok-Aun, Senior Fellow, Malaysian Studies Programme, ISEAS-Yusof Ishak Institute.

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