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WHEN WILL A PENSION CEASE ?

A pension or other benefit granted under the Pensions Act 1980 to a person who is subsequently adjudged a bankrupt or declared insolvent by a Court, whether in Malaysia or elsewhere, shall cease forthwith.

When 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.

Where any person to whom a pension or other benefit has been granted is sentenced to death or any term of imprisonment by a Court, such pension or other benefit shall also cease forthwith.

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

If a person who has been granted a pension or other benefit under the Pensions Act 1980 has voluntarily, other than marriage, acquired citizenship of, or exercised rights of citizenship in, or has made a declaration of allegiance to, any other country other than Malaysia or has been deprived of his Malaysian citizenship, such pension or other benefit shall cease forthwith. No pension or other benefit shall be granted to the dependants under this circumstances.

A derivative pension or a derivative retiring allowance granted shall cease if the recipient is

  • a widow or widower, upon remarriage
  • a child who is receiving education in an institution of either 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
  • 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 above, upon marriage or upon attaining the age of 21 years, whichever is the earlier.
IS THERE ANY PENSION FOR DISABLED PERSON IN THE COURSE OF PERFORMING HIS OFFICIAL DUTY ?

In addition to payments made under the normal pension benefits, whenever applicable, a disability pension may be granted under the regulations where an officer, other than a contract officer is required to retire as a result of

  • sustaining an injury in the course and arising out of performing his official duty or due to a travel accident
  • contracting a disease to which he is exposed by the nature of his duty

Nevertheless, injury or disease for the purpose of the above matter does not include injury or disease due to, aggravated or contributed by negligence or misconduct.

WHAT IS THE RATE PAYABLE FOR DISABILITY PENSION ?
Degree of Impairment Rate Payable
Slightly impaired One-twelfth of his salary
Impaired One-sixth of his salary
Materially impaired One-fourth of his salary
Totally destroyed One-third of his salary

Where an officer who sustains a permanent injury due to a travel accident or while on duty in a security area, the disability pension payable shall be as follows :

Degree of Impairment Rate Payable
Slightly impaired One-eighty of his salary
Impaired One-quarter of his salary
Materially impaired Three-eighths of his salary
Totally destroyed One-half of his salary

Disability pension shall be payable in addition to a pension, gratuity or other benefit granted at the time of retirement.

IS A PENSION ASSIGNABLE ?

Any pension, gratuity or other benefit granted under the Pension Act 1980 shall not be assignable or transferable or liable to be attached, sequestrated or levied upon in respect of any claim except for the purpose of

  • 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.


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