*PENSIONS ACT 1980

This Act shall apply throughout Malaysia in respect of—

who is a child under twenty-one years of age and includes—

a posthumous child, a dependent step-child and an illegitimate child of the officer; and

who is a child of any age and is mentally retarded or physically and permanently incapacitated and is incapable of supporting himself provided that such child is mentally retarded or physically and permanently incapacitated before the child reaches the age of twenty-one years;

“Director General” means the Director General of Public

Services;

“federal officer” means an officer in the service of the Federal

Government;

“last drawn salary” means the last drawn monthly substantive salary or in the case of retirement under section 12A his actual last drawn monthly substantive salary paid to him by the organization whilst on the same terms and conditions of service as in the New Scheme, and includes any pensionable allowance;

“local federal officer” means an officer who is recruited for, or transferred to, service under the Federal Government in Sabah or

Sarawak and has not been permanently transferred to service outside

Sabah or Sarawak;

Pensions 7

“New Scheme” means the revised salaries and terms and conditions of service of officers in the public service arising from the revision of salaries and terms and conditions of service of such officers made by the Federal Government with effect from 1 January 1976, or from any other subsequent revision made by the Federal Government from time to time;

“officer” means an officer on full-time employment in the public service;

“other public service” means service under a Government set out in the Schedule in respect of officers transferred to public service;

“pensionable officer” means an officer who has been conferred the status of a pensionable officer under section 7 or who is deemed to be a pensionable officer under subsection 6A (6C) or section 8;

“public service” means—

the Judicial and Legal Service;

the General Public Service of the Federal Government;

the Police Force;

the Railway Service;

the Education Service;

the Joint Public Services common to the Federal Government and of one or more of the States;

the Public Service of each State;

the Parliamentary Service; or

such other service as the Yang di-Pertuan Agong may determine to be public service for the purposes of this Act;

8 Laws of Malaysia ACT 227

“reckonable service” means service prescribed as reckonable service under the regulations;

“regulations” means any regulations made under section 5;

“state officer” means an officer in the service of the Government of a State; and

“Statutory or Local Authority” means a Statutory or a Local

Authority established by any written law.

Pension, etc., not an absolute right

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 withhold a pension, gratuity or other benefit for which the officer would have been eligible but for the provision of this section.

Pension, etc., to be charged on the Federal Consolidated Fund

For the purposes of this Act, pension, gratuity or other benefit does not include any cash award granted in lieu of accumulated vacation leave to an officer whose salary is not paid out of the

Federal Consolidated Fund.

Regulations

Notwithstanding any other written law, regulations made under this section may be given retrospective effect to a date earlier than the commencement of this Act in order to confer a benefit upon, or remove a disability attaching to, any person.

Computation of pension, etc.

For the purpose of subsection (1), an officer who retires before being confirmed in his second or subsequent appointment, the last drawn salary shall be the last drawn salary of his former appointment in which he had been confirmed had he remained in his former appointment until his retirement.

Any pension, gratuity or other benefit granted to an officer who retires under section 11 shall be computed in accordance with the regulations where the total period of his reckonable service shall be counted as if he had served until his compulsory age of retirement, whichever is applicable to him.

Exercise of option

The option under subsection (1) shall be made to the appropriate appointing authority in such manner as may be determined by the Director General.

10 Laws of Malaysia ACT 227

The exercise of the option by an officer under this section shall take effect on his being confirmed in his appointment and shall thereupon be irrevocable.

Where an officer opts for the Employees Provident Fund

Scheme, the provisions of this Act, except this section, shall not apply to such officer.

An officer who opts for the Employees Provident Fund

Scheme shall retire from the public service on attaining the age of sixty years.

Subsection (5) shall not apply to an officer who was appointed before 1 January 2012 and had been given an option before such date and had not opted for the compulsory age of retirement of sixty years.

The compulsory retirement age for an officer who had not opted for the compulsory retirement age of sixty years as referred to in subsection (5A) shall remain either fifty-five years or fifty-six years or fifty-eight years as the age that he had opted before 1 January 2012.

The option for the compulsory age of retirement of sixty years exercised by an officer for the purpose of subsections (5) and (5A) shall be irrevocable.

The Yang di-Pertuan Agong, in the case of a federal officer or a local federal officer, or the State Authority, in the case of a state officer, may require an officer who opts for the Employees Provident

Fund Scheme to retire from the public service in any of the circumstances referred to in paragraphs 10(5)(a), (b), (c), (d), (e) and

Notwithstanding subsection (3), an officer who had opted for the Employees Provident Fund Scheme before 1 January 2009 and has been confirmed in his appointment before such date shall be given an option to opt for pension, gratuity or other benefit granted under this Act.

Pensions 11

The option made under subsection (6A) shall be irrevocable on 1 February 2009 and the provisions of this Act shall apply to the officer from that date.

Where an officer has opted for pension, gratuity or other benefit pursuant to subsection (6A) and dies before the option becomes irrevocable pursuant to subsection (6B), the officer is deemed to be a pensionable officer and the provisions of this Act shall apply to him from the date of his death.

In this section “Employees Provident Fund Scheme” refers to a provident fund established under the Employees Provident Fund

Act 1991 [Act 452], including an approved fund as defined in that

Act.

Conferment of pensionable status

been confirmed in his present appointment; and

completed not less than three years’ reckonable service.

Officers deemed to be pensionable officers

an officer who has already been emplaced or qualified to be emplaced on the pensionable establishment under the

Pensions Ordinance 1951 [Ord. 1 of 1951] prior to 1 July 1977, the Pensions Ordinance 1963 of Sabah [Ord. 3 of 1963]

or the Pensions Ordinance of Sarawak [Cap. 89] prior to 1 July 1978, as the case may be;

12 Laws of Malaysia ACT 227

a permanent and confirmed officer who dies in service, retires on medical ground or under section 12A before completing ten years’ reckonable service; or

a pensionable employee under the Statutory and Local

Authorities Pensions Act 1980 [Act 239] or any other written law who is permanently transferred by appointment to the public service.

Grant of pension, etc.

compulsory retirement under section 10; or

optional retirement under section 12 after completing a period of not less than ten years’ reckonable service; or

retirement under section 11.

(Deleted by Act A625).

The Yang di-Pertuan Agong may grant a pension, gratuity or other benefit to a pensionable officer if the retirement is under section 12A.

Compulsory retirement

Where an officer attains the compulsory age of retirement of fifty-five, fifty-six, fifty-eight or sixty years, as the case may be, and a criminal or disciplinary proceeding which may result in his conviction or dismissal is not concluded, his service shall be deemed to have been extended beyond any of that age, as the case may be, but on no-pay leave until his case is determined.

Pensions 13

Where the criminal or disciplinary proceeding under subsection (2) does not result in his conviction or dismissal, he shall retire on attaining the age of fifty-five, fifty-six, fifty-eight or sixty years, as the case may be of his compulsory age of retirement, and the period of service after any of this age, as the case may be, shall not be regarded as reckonable service.

Subsection (1) shall not apply to—

The Yang di-Pertuan Agong, in the case of a federal officer or a local federal officer, or the State Authority, in the case of a state officer, may require any officer to retire from the public service—

Paragraph (5)(f) shall apply only to officers appointed to the public service after the commencement of this subsection.

The compulsory age of retirement of sixty years provided for in subsection (1) shall apply to an officer who is appointed on or after 1 January 2012.

The compulsory age of retirement of sixty years provided for in subsection (1) shall not apply to an officer who was appointed before 1 January 2012 and had been given an option before such date and had not opted for the compulsory age of retirement of sixty years.

Pensions 15

The option for the compulsory age of retirement of sixty years exercised by an officer referred to in subsection (8) shall be irrevocable.

Retirement at the instance of the Government

the Yang di-Pertuan Agong may require a federal officer to retire at any age—

on ground of national interest; or

the State Authority may require a State officer to retire at any age—

with the approval of the Yang di-Pertuan Agong, on ground of national interest; or

Where an officer who is appointed before the commencement of this section retires under subsection (1), such officer may be granted a pension, only on attaining the age of—

Where an officer who is appointed after the commencement of this section retires under subsection (1), such officer may be granted a pension, only on attaining the age of *fifty-five years.

An officer who retires under subsection (1) may on his retirement be granted a gratuity, cash award granted in lieu of accumulated vacation leave or other benefit.

*(Deleted by Act A1409).

Subject to section 16, where an officer who has retired under subsection (1) dies before attaining forty-five years of age, fifty years of age or fifty-five years of age, as the case may be, the

Yang di-Pertuan Agong may forthwith grant to the person prescribed in the regulations a derivative pension of not less than one-fifth of the deceased officer’s last drawn salary and a derivative gratuity or a derivative gratuity only.

(Deleted by Act A1343).

*NOTE—Saving and transitional–see section 12 of the Pensions (Amendment) Act 2011 [Act A1409]

which comes into operation on 1 January 2012.

Pensions 17

Retirement on being appointed to serve in organization

Where a pensionable officer being a woman officer who is below forty-five years of age or a male officer who is below fifty years of age, is appointed by or with the approval of the Government to serve in any organization on the same terms and conditions of service as in the New Scheme he may be granted a pension, gratuity or other benefit on attaining the age of sixty years if he has served in such organization or any of its subsidiaries for a continuous period of not less than five years from the date of his leaving the public service, and in such case, any period of such service under the same terms and conditions of service as in the New Scheme with the organization or any of its subsidiaries may be reckoned for the purpose of granting the pension, gratuity or other benefit to the officer.

Where an officer referred to in subsection (2) who was appointed before 1 January 2012 had been given an option before such date and had not opted for the compulsory age of retirement of sixty years, subsection (2) shall apply to him with the words

‘fifty-five’ or ‘fifty-six’ or ‘fifty-eight’, as the case may be, being substituted for the word ‘sixty’.

18 Laws of Malaysia ACT 227

In the case of a pensionable officer to whom subsection (2)

does not apply, he may be granted a pension, gratuity or other benefit in the case of a woman officer on attaining forty-five years of age or in the case of a male officer fifty years of age, if he has served in the organization or any of its subsidiaries or the international organization to which he was appointed by or with the approval of the Government for a continuous period of not less than five years from the date of his leaving the public service or until forty-five years of age or fifty years of age, as the case may be, whichever is the earlier.

Notwithstanding the provisions of subsections (2) and (3), where the service of the officer is terminated by the organization or any of its subsidiaries or the international organization to which he was appointed by or with the approval of the Government on ground of retrenchment or ill health, or where the contract is not renewed in respect of his appointment in the international organization, he may be granted a pension, gratuity or other benefit.

Monthly contributions to the Consolidated Fund

(Deleted by Act A1343).

Derivative pension where an officer dies after retirement

(Deleted by Act A1343).

where a pensionable officer dies within or after the period of *twenty years from the date of his retirement from the public service, the Yang di-Pertuan Agong may grant to the person prescribed in the regulations a derivative pension equivalent to the amount of pension paid to him:

Provided that any grant of derivative pension after the expiration of the period of *twenty years from the date of his retirement shall only be made where the recipient—

in the case of a widow or widower, was married to the deceased officer while such officer was still in service;

Where an officer dies after his retirement but during the period of retirement prior to his death his pension was not granted or has ceased under section 21, subsection (1) shall apply and for this purpose the officer shall be deemed to have received the pension.

Cessation of derivative pension

(Deleted by Act A1171);

a child, other than a child who is mentally retarded or physically and permanently incapacitated and incapable of supporting himself or a child referred to in paragraph (c), upon marriage or upon attaining the age of twenty-one, whichever is the earlier; or

a child who is receiving education in an institution of higher learning but not beyond education leading to a first degree, upon completing or ceasing to receive such education or upon marriage, whichever is the earlier.

Cessation of pension in respect of child attaining age of eighteen deemed valid

Where subsection (1) is applicable, but such child is under this Act eligible to be paid a derivative pension or other benefit, such child shall, subject to section 16, be paid the portion of the derivative pension or other benefit due to him as from the publication of this Act.

Disability pension

sustaining an injury in the course and arising out of performing his official duty or due to a travel accident; or

contracting a disease to which he is exposed by the nature of his duty.

For the purpose of subsection (1), injury or disease means injury or disease which is not due to, aggravated or contributed by negligence or misconduct.

Dependant’s pension

the officer dies in the circumstances under section 17; and

such death occurs within seven years of the date of sustaining the injury or contracting the disease.

22 Laws of Malaysia ACT 227

Pension, etc., not to be assignable

a debt due to the Federal Government, or the Government of any State or a Statutory or Local Authority;

an order of a Court for the payment of periodical sums of money towards the maintenance of the wife or former wife or minor child, whether legitimate or not, of the officer to whom the pension, gratuity or other benefit has been granted; or

an order of a court issued in relation to bankruptcy matters under any written law relating to it.

The pension or other benefit under subsection (1) shall be restored with retrospective effect in the case of a person who after conviction receives a free pardon.

Where a pension or other benefit ceases under subsection (1), the Yang di-Pertuan Agong may grant an alimentary allowance equivalent to the whole or any part of such moneys to which the pensioner would have been entitled by way of pension or other benefit as he thinks proper to the pensioner’s wife or children for

Pensions 23

their maintenance and benefit and, after the expiration of his sentence, to such pensioner himself.

Pension, etc., to cease on acquiring citizenship of other country

Where pension or other benefit ceases under subsection (1), no pension or other benefit shall be granted to the dependants.

Maximum pension

Where an officer has been or is granted a pension in respect of other public service, he may be granted the full pension for which he is eligible in respect of his public service, but no such officer shall draw from the Federal Consolidated Fund the amount of pension which, when added to the amount of pension drawn in respect of other public service, exceeds six-tenths of his last drawn salary.

For the purpose of subsection (2), the pension of an officer in respect of his other public service means the amount of pension which he might have had if he had elected not to be paid a commuted pension and reduced pension.

For the purpose of this section, any benefits granted under section 17 or 18 shall not be taken into account.

24 Laws of Malaysia ACT 227

Lowest pension for full service

Subject to subsection (1), where an officer has retired under subparagraph 11(a)(i) or 11(b)(i) and within the period of five years thereof involves himself in any activity which may be in conflict with the purpose of his retirement, the Yang di-Pertuan Agong may suspend his pension until he reaches the age of sixty or completes a period of five years retirement, whichever is the earlier.

Where an officer referred to in subsection (2) who was reappointed before 1 January 2012 had been given an option before such date and had not opted for the compulsory age of retirement of sixty years, subsection (2) shall apply to him with the words

‘fifty-five’ or ‘fifty-six’ or ‘fifty-eight’, as the case may be, being substituted for the word ‘sixty’.

In respect of retirement under subparagraph 11(b)(i), subsection (2) shall apply only to officers appointed to the public service after the commencement of this subsection.

Pensions 25

Grant of retiring allowance to temporary officer

was continually in service with the Federal Government or a State Government prior to 1 January 1976 and up to the date of his retirement after 1 January 1976;

has completed a period of not less than ten years’ reckonable service with the Federal Government or a State Government;

and

was on the date of his appointment not liable to contribute to the Employees Provident Fund or other provident fund.

Grant of derivative retiring allowance to temporary officer

where a temporary officer dies in service and would have become eligible for retiring allowance and gratuity under section 24 had he retired on the date of his death, the

Yang di-Pertuan Agong may grant to the person prescribed in the regulations—

a derivative gratuity equivalent to the officer’s gratuity; and

where a temporary officer who is receiving a retiring allowance dies within or after the period of *twenty years from the date of his retirement, a derivative retiring allowance equivalent to the officer’s retiring allowance may be granted to the person prescribed in the regulations:

Provided that any grant of derivative retiring allowance after the expiration of the period of *twenty years shall only be made where the recipient—

in the case of a widow or widower, was married to the deceased officer while the officer was still in service;

(Deleted by Act A1343).

Where an officer dies in service, any cash award payable in lieu of accumulated leave granted under the regulations may be paid to his dependants without probate or letters of administration.

Where any payment is made in good faith under this section and in accordance with the provisions of this Act and of the regulations made thereunder, such payment shall constitute a full and proper discharge of all liability and no action, suit or proceedings for such payment or calling such payment in question be brought or shall lie against the Government or any of its officers or servants.

For the purpose of this section—

cases of cheating in order to enjoy the pension and other benefit conferred under this Act; or

offences under the regulations made under this Act.

28 Laws of Malaysia ACT 227

Any reward paid under this Act shall be charged on the

Federal Consolidated Fund.

Amendment of Schedule

The Pensions Ordinance 1951, the Pensions Ordinance 1963

of Sabah and the Pensions Ordinance of Sarawak, shall continue to apply to officers who do not opt for or are not appointed under the

New Scheme.

NOTE—Savings and transitional provisions–see section 10 of the Pensions

(Amendment) Act 2009 [Act A1343] which comes into operation pursuant to section 1 of Act A1343 which provides the following provisions:

Savings and transitional provisions

For the purpose of subsection (1), the option of the officer shall be deemed irrevocable one month from the date he exercises the option and the provisions of the principal Act shall apply to the officer from that date.

The grant of pension, derivative pension, retiring allowance or derivative retiring allowance in respect of an officer who retires before 1 January 2009 or dies before 31 December 2008 shall be based on the principal Act as if it has not been amended by this Act, and such grant of pension, derivative pension, retiring

Pensions 29

allowance or derivative retiring allowance shall be based on the amendments made to the principal Act by this Act only from 1 January 2009 and shall be payable from that date.

In the case of the abolishment of the requirement of residency in Malaysia, the grant of derivative pension or derivative retiring allowance before 1 January 2008 shall be based on the principal Act as if it has not been amended by this Act and such grant of derivative pension or derivative retiring allowance shall be based on the amendments made to the principal Act by this Act only from 1 January 2008

and shall be payable from that date.