(1) This Act may be cited as the Statutory and Local Short title, Authorities Pensions Act 1980 and shall be deemed to ment and have come into force on 1st January 1976. •application.
(2) This Act shall apply throughout Malaysia in respect of employees in the statutory and local authorities—
(a) who have opted or who are deemed to have opted for the New Scheme;
(b) who were appointed under the New Scheme; or
(c) who by virtue of their option were bound by the New Scheme.
Act 239
Statutory and Local Authorities Pensions Act 1980
Akta pencen pihak-pihak berkuasa berkanun dan tempatan 1980
Text recovered by OCR from a scanned copy — section numbers and wording may be wrong. Check the official PDF on lom.agc.gov.my before citing.
An Act to provide for the administration of pensions, gratuities and other benefits for employees in the statutory and local authorities and their dependants pursuant to the revision of salaries and terms and conditions of service of such employees made by the Government with effect from 1st January 1976. [lst January 1976.] BE IT ENACTED by the Duli Yang Maha Mulia Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: 1. (1) This Act may be cited as the Statutory and Local Short title, Authorities Pensions Act 1980 and shall be deemed to ment and have come into force on 1st January 1976. •application. (2) This Act shall apply throughout Malaysia in respect of employees in the statutory and local authorities— (a) who have opted or who are deemed to have opted for the New Scheme; (b) who were appointed under the New Scheme; or (c) who by virtue of their option were bound by the New Scheme. 2. In this Act, unless the context otherwise requires- Interpreta- mnapropmatoe asthutiy rocal a thority, board or "employee" means a person on full time employment of a statutory or local aythority; "mbi6%eomdahs a stalütory or Tocal authority; • AA904 "last drawn salary" means the actual last drawn monthly substantive salary paid to an employee before his retirement or deatly, provided that in respect of an 8# 619
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In this Act, unless the context otherwise requires- Interpretamnapropmatoe asthutiy rocal a thority, board or "employee" means a person on full time employment of a statutory or local aythority; "mbi6%eomdahs a stalütory or Tocal authority; • AA904 "last drawn salary" means the actual last drawn monthly substantive salary paid to an employee before his retirement or deatly, provided that in respect of an 8# 619
[S.2-3] cuch pensionable allevane salenrmpare alois las drawn salary; "Minister" means the Minister charged with the responsibility for pensions; "New Scheme" means the revised salaries and terms and conditions of service of employees in the statutory and local authorities arising from the revision of salaries and terms and conditions of service of such employees made by the Government with effect from Ist January 1976, or from any other subsequent revision Lor approved AA904 HAtAc made/by the Grovernment from time to time; "pensionable employee" means an employee who has been conferred pensionable status under section 6 or deemed to have been conferred pensionable status under section 7; "pensions authority" means the Director General of Public Services or any officer authorised by him in writing to act on his behalf; "reckonable service" means service prescribed as reckonable service under the regulations; "regulations" means regulations made under section AASZ8 28; "salary"means a monthly salary including any pensionable allowance payable in accordance with the salary scales of the New Scheme; stae (o" meani, oice n dery he Cotory or 1ocal authority; and ocat autority local autpury" mo the aeatohemor Pension etc. 3. (1) No employee shall have an absolute right to . absolute right. compensation for past service or to any pension, gratuity or other benefit under this Act.
(2) Where it is established to the satisfaction of the Minister by an appropriate authority that an employee has been guilty of negligence, irregularity or misconduct, the Minister may reduce or withhold the pension, gratuity or other benefit for which such employee would be eligible but for this section.
(1) Tiada scorangpun pekerja boleh mempunyai hak mutlak untuk mendapat pampasan bagi perkhidmatan dll. bukan suatu hak yang lepas atau untuk mendapat apa-apa pencen, gan- yang jaran atau lain-lain faedah di bawah Akta ini. mutlak.
(2) Jıka pihak berkuasa yang berkenaan telah membuktıkan hingga memuaskan hatı Menteri bahawa seseorang pekerja telah bersalah atas kecuaian, salahaturan atau salahlaku, maka Menteri boleh mengurangkan atau menahan pencen, ganjaran atau lain-lain faedah yang pekerja itu sepatutnya layak mendapat jika tidak kerana seksyen ini.
(1) Pensions, gratuities and other benefits granted Pensions, under this Act shall be charged on the Consolidated etc. charged on the Con- Fund from Ist January 1981. solidated Fund.
(2) Payment of any pension, gratuity or other benefit granted under this Act up to 31st December 1980 shall be made from the Fund established under the statutory Act 185. and Local Authorities Superannuation Fund Act 1977. .) Any pension, gratuty or otner benelit granted Computa ınder thıs Act shall be computed in accordance witl tion of pensions, the regulations; provided that, in the case of retirement etc. under paragraph (a) of subsection (5) of section 10,or under Rection (3 the amount of pension granted shall not be less than one-fifth of the employee's last drawn salary.
(2) For the purpose of subsection (1), the last drawn salary of an employee who retires before being confirmed in his second or subsequent appointment 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.
The pensions authority may confer a permanent Conensmnt employee the status of a pensionable employee if he of pensionable status. has-
(a) been confirmed in his present appointment; and three sub.AA827
(b) completed not less than ten years' reckonable C.19- 111112) service. %. Without prefúdice to section 6, the following < AA 794 -пAдo4 AдI1ь Employees employees shall be deemed to be pensionable deemed to be employees: pensionable employees.
(a) an employee who has already been emplaced or qualified to be emplaced on the pensionable establishment under the Statutory and Local Act 185. Authorities Superannuation Fund Act 1977 prior to lst July 1977 in the case of an employee in West Malaysia or 1st July 1978 in the case of an employee in Sabah or Sarawak;
IS. 7-8]
(b) an employee who has been conferred the status of a pensionable employee by the appropriate authority before the publication of this Act; Act 227.
(c) a pensionable officer under the Pensions Act 1980 or any other written law and who is Lby appointment AA 794 permanently transferred/to a statutory or local authority; and or undler section is
(d) a permanent and confirmed employee who dies in service, of retires on medical grounds/before completing ten years' reckonable service: Provided that where an employee has been found to have been wrongly conferred the status of a pensionable employee by the appropriate authority, the pensions authority may direct the appropriate authority to revoke such conferment and thereafter the pensions authority shall be responsible for the conferment of pensionable status on the employee under section 6. Contributions. Sub. AA824 #A619 Act 185. Act 185.
(I) An employer shall make monthly contributions to the Consolidated Fundjat the rate of seventeen and a half per centum of the employee's monthly salary in respect of each pensionable employee and such rate Shall take effect from Ist January 1981.
(2) Notwithstanding subsection (1), all monthly contributions by an employer up to 31st December 1980 shall be paid into the Fund established under the Statutory and Local Authorities Superannuation Fund Act 1977 and upon the winding up of the Fund, all the contributionsand income thereot, less any payments made in respect of pensions, gratuities or benefits granted under this Act, shall be transferred to the Consolidated Fund.
(3) Notwithstanding subsection (1), all contributions made by an employer in respect of each pensionable employee at the rate set out in the Second Schedule of the Statutory and Local Authorities Superannuation Fund Act 1977 up to 31st December 1980 shall be deemed to have been properly made.
(4) Where the amount of monthly contributions which an employer is liable to pay in respect of all pensionable employees is not paid within the period
[S.8-10] prescribed in the regulations, the employer shall be liable to pay interest on such amount at the rate of half per centum in respect of each month or part of a month after the expiration of such period during which such amountremains unpaid exceptthat interest shall only be collected for arrears incurred after 1st January 1981.
(5) The Minister may, with the concurrence of the Minister of Finance, by order amend the rate under subsections (1) and (4).
(6) The Minister of Finance may in any case which he thinks fit remit in whole or in part the payment of Sub.AAGHS any interest due under this section. 9.A pensionable employee may be granted a pension, Grant of gratuity or other benefit on— pensions, etc.
(a) compulsory retirement under section 10;
(b) retirement under section 11; or
(c) optional retirement under section 12 after completing a period of not less than ten years' reckonable service, or
(d) retirement under section 13, previded that the employeehas attained the age of fifty years. 01/AA69
(2) -- AA Ep9
(I) Subject to subsections (3) and (4), an employee Compulsory Shall retire from shall neton ftom ihe theage ofti lyatte yea or ocal Ins/AA 1125/01 SUO/AA 1125/0)
(2) A serving employee who has attained fifty-five years on the publication of this Act shall retire within 2/AA1125/01 six months thereof.
(3) Where a criminal or disciplinary proceeding which may result in the conviction or dismissal of an , Sub/mro1125/o) employge is not concluded when he attains the age of hity-five years, his service shall be deemed to have been extended beyond that age but on no-pay leave until his case is determined.
(4) Where the criminal or disciplinary proceeding under subsection (3) does not result in his conviction or dismissal, heshall retire on attaining the age of fifty-sub/aA1125/01 fifeyears and the period of service after this age shall not be regarded as reckonable service.
[S. 10-13]
(5) An appropriate authority may, with the consent of the pensions authority, require any employee to retire from service in a statutory or local authority-
(a) where the pensions authority is satisfied on medical evidence that the employee is incapable of discharging the duties of his office, by reason of infirmity of mind or body likely to be permanent;
(b) on the abolition of the office held by him;
(c) for the purpose offacilitating improvement in tne organisation of the statutory or local authority to which the employee belongs by which greater efficiency or economy may be achieved; AA645 AA794 Ins145%o - (l) and(e) on the termination of his employment in the public interest. 11.7 Notwithstanding sections 10 and 12, with the consent of the employee, the Minister may require an Minister. employee to retire at any age-
(a) on grounds of national interest; or
(b) in the interest of the service of the statutory or local authority. Subs AA 794 Optional retirement.
Walal apä, pon perentukan sokeyen 10 dan 12, on98, nenaak sescorangi dengan persetujuan pekerja itu, Menteri boleh meng- kehendak hendaki seseorang pekerja supaya bersara pada mana- Menteri. mana peringkat umur-
(a) atas alasan kepentingan negara; atau
(b) demi kepentingan perkhidmatan pihak berkuasa berkanun atau tempatan. Subs. An 794
An appropriate authority may, with the approval of the pensions authority on the employee's application, consent to the retirement of an employee on or after attaining the age ot—
(a)forty-fiveyears for-
(i) a female employee; and
(il) an employee of the fire service holding the rank of sub-officer and below; or
(b) fifty years for a male employee, other than an employee under sub-paragraph (ii) of paragraph (a). Suln-Ly AA619 Retirement
Where a pensionable employee who is below fifty on being appointed years of age is appointed by or with the approval of the to serve in business or Government to serve in any business organization in international organiwhichthe Government or any State Government has zation. an interest or in any international organization of which the Government is a member he may be deemed to have retired from the service of the statutory or local authority on the date of his leaving the authority,
[S. 13-16] and such employee, in the event that he dies before attainng the age of fifty shall, for the purposes of section 15, be deemed to have died in service.
The Minister may, if he thinks fit, grant a pension, Retirement gratuity or other benefit to an employee who is retired in the public (in the public interest, but the amount shall not exceed interest. Lunder section that for which such employee would be eligible had his rocs)(d) or pension, gratuity or other benefit been calculated section 1o(s)(Đ) AH 794 based on his actual length of reckonable service.
(1) Where a pensionable employee dies in service, A derivative the Minister may grant to the person prescribed in the pension or gratuity regulations a derivative pension of not less than one- where an fifth of the deceased employee's last drawn salary and dies in a derivative gratuity or a derivative gratuity only. service.
(2) Subject to section 17, the derivative pension granted under subsection (1) shall be payable for a period not exceeding twelve and a half years from the date immediately following the date of death of the eredoit i, a nd theiaa sea t he recipie to perovidesd ven ig percent of the amount granted.
(1) Subject to section 17— Derivative pension
(a) where a pensionable employee dies within the when an employee period of twelve and a half years from the date dies after of his retirement the Minister may grant to the retirement. person prescribed in the regulations a derivative pension equivalent to the amount of pension paid to him for a period not exceeding the difference between the period of twelve and a half years and the retirement period of the deceased employee; and thereafter such derivative pension shall continue to be payable at the rate of seventy per centum of the amount granted; and
(b) where a pensionable employee dies after twelve and a half years from the date of his retirement the Minister may grant to the
IS. 16-18] AA S78 Cessation of derivative pension. d/A41172/02 Cessation of pension in respect of child attaining age of eighteen deemed valid. person prescribed in the regulations a derivative pension equivalent to seventy per centum of the employee's pension: Provided that any grant of derivative pension atter the expiration of the period of twelve and a half years from the date of his retirement shall only bermade where the recipient—
(i) was married to the deceased employee Sub.AA645 while such employee was still in service; and
(ii) is a resident in Malaysia.
(2) Where a pensionable employee dies after his retirement but during the period of retirement prior to his death his pension was not granted or has ceased under section 22 or 23, subsection (1) shall apply and for this purpose the employee shall be deemed to have received the pension. 164•-
A derivative pension granted under this Act shall cease if the recipient is— {a) a widow or widower, upon remarriage;
(b) 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 pargaraph (c), upon marriage or upon attaining the age of twentyone, whichever is the earlier; or
(c) 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.
(1) Notwithstanding section 17, where prior to the publication of this Act any payment is respect of a derivative pension or other benefit payable to a child has ceased upon the child attaining the age of eighteen, such cessation and any apportionment of the derivative pension or other benefit to any other dependants subsequent to the cessation shall be deemed to have been properly and validly done.
[S. 18-21]
(2) 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 17, be paid the portion of the derivative pension or other benefit due to him as from the publication of this Act.
(1) In addition to payments under section 9, the Disability Minister may grant a disability pension under the pension. regulations where an employee, other than a contract employee, is required to retire as a result of-
(a) sustaining an injury in the course and arising out of performance of his official duty or due to a travel accident; or
(b) contracting a disease to which he is exposed by the nature of his duty.
(2) For the purpose of subsection (1), "injury" or "disease" means injury or disease which is not due to, or aggravated or contributed by, his negligence or misconduct.
In addition to derivative pension and derivative Dependant's gratuity, the Minister may grant to an employee's pension. dependants a dependent's pension prescribed in the regulations where—
(a) the employee dies in the circumstances under section 19; and
(b) such death occurs within seven years of the date of sustaining the injury or contracting the disease.
Any pension, gratuity or other benefit granted . Pension, etc. not under this Act shall not be assignable or transferable or to be liable to be attached, sequestrated or levied upon in assignable. respect of any claim except for the purpose of satisfying-
(a) a debt due to the Government, or the Government of any State, or a statutory or local authority; or
(b) an order of a Court for the payment of periodical sums of money towards the maintenance of the wife or former wife or child,
[S. 21-23] Pension etc. to cease on bankruptcy. Pension etc.to cease on conviction. whether legitimate or not, of the employee to whom the pension, gratuity or other benefit has been granted.
(1) An employee shall not be granted a pension, gratuity or other benefit if at the date of his retirement from service in a statutory or local authority—
(a) he has been adjudged a bankrupt or declared insolvent by a Court, whether in Malaysia or elsewhere; and
(b) he has not obtained a discharge from such adjudication or declaration.
(2) A pension or other benefit granted under this Act to a person who is subsequently adjudged a bankrupt or declared insolvent by a Court, whether in Malaysia or elsewhere, shall cease forthwith.
(3) The Minister may grant an alimentary allowance to, and for the maintenance or benefit of, the employee or pensioner, his wife or chila, where a pension, gratuity or other benefit is not granted under subsection (I), or ceases under subsection (2), and the allowance shall be equivalent to the pension, gratuity or other benefit to which the employee or pensioner would have been entitled had he not become a bankrupt or insolvent.
(4) For the purpose of subsection (3), moneys applied for the discharge of the debts of the employee or pensioner shall be regarded as applied for his beneht.
(5) When such . a person is discharged from his bankruptcy or insolvency, his pension or other benefit shall be restored to him with effect from the date of such discharge.
(1) Subject to subsection (2), where any person to whom a pension or other benefit has been granted under this Act is sentenced to death or to any term of imprisonment by a Court, such pension or other benefit shall cease forthwith.
(2) 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.
[S. 23-27]
(3) Where a pension or other benefit ceases under subsection (1), the Minister 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 their maintenance and benefit and, after the expiration of his sentence, to the pensioner himselt. 1A645
A pension granted under section 9, 15 or 16 shall Maximum not exceed one-half of the employee's last drawn salary. pension.
In the case of a pension which has been calculated Lowest on the basis of reckonable service of not less than pension for twenty-five years, the amount payable under this Act full service. shall not be less than one hundred and eighty ringgit per month or any such amount as may be determined by the Minister from time to time by notification in the Gazette.
(I) Where an employee to whom a pension has Suspension been granted under this Act or under any written law of pension. is reappointed as a permanent employee, the Minister may suspend the pension during the period of his reappointment.
(2) Subject to subsection (1), where an employee has retired under paragraph (a) of section 11 and within a perod of five years therof such employee involves himsell in any activity which may be in contlict with the purpose of his retirement, the Minister may suspend his pension until he reaches the age of fifty-five years or sub/AA 125/0 completes a period of five years' retirement, whichever is the earlier.
(24)... Ins/AA 1125/01 fub. AA6A5
(1) Notwithstanding any written law to the con-Payment trary, where a pensioner to whom any payment could without be made under the regulations dies before any payment letters of probate or is made and the amount remains unpaid, the amount so unpaid may be paid to his dependants under the tration. regulations without probate or letters of administration.
(2) For the purpose of this section, "unpaid" means unpaid by the pensions authority or undrawn by the pensioner,
[S. 28-29] Regulations. 28. The Minister may make regulations for the purposes of this Act, but such regulations shall not provide for any pension, gratuity or other benefit which is more favourable than the pension, gratuity or otner benefit granted in accordance with the regulations Act 227. Previous actions. made under the Pensions Act 1980. 29nsons of amripe sendong atto piry on aeboal of the Act shall be deemed to have been properly done. AA645 4A645 30.--- > 31. .-- -(ac) KUALA LUMPUR DICETAK OLEH KETUA PENGARAH PERCETAKAN NEGARA DAN DITERBITKAN DENGAN PERINTAH PADA 7HE OGOS 1980 Harga: 50 sen STA
Cite this legislation
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- Act 239
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Statutory and Local Authorities Pensions Act 1980 [Act 239] (Laws of Malaysia, lom.agc.gov.my). Retrieved via LawPlayer, https://lawplayer.com/my/act/act-239
This text is synced from lom.agc.gov.my. In case of any discrepancy, the authoritative text prevails.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).