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Pension means money paid under given conditions to a person following retirement or to surviving dependants.

The Pensions Act 1980 which came into force on the 1st January 1976 is the governing act for pensions benefits in Malaysia. This Act provide for the administration of pensions, gratuities and other benefits for officers in the public service and their dependants.

Under the Pensions Act 1980, pension, gratuity or other benefit granted shall be charged on the Federal Consolidated Fund.

Pension 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.

An officer refers to an officer of the public service or an employee of any statutory or local authority who prior to retirement or death, was service in Malaysia or in any of the territories which presently constitute Malaysia.


In Malaysia, officers on full-time employment in the public service under given condition are entitled to pension benefits.

Public service refers to :

  • 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
  • such other service as the Yang di-Pertuan Agong may determine to be public service for the purposes of the Pensions Act 1980

Officers in the public service

  • who have opted or who are deemed to have opted for any New Scheme
  • who are or were appointed under any New Scheme
  • who by virtue of their option are bound by any New Scheme

and temporary officers in the public service who were appointed prior to the 1st January 1976 and who were not given the option to opt for the New Scheme which came into force from that date are entitled for pension benefits.

New Scheme is 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 the 1st January 1976 or from any other subsequent revision made by the Federal Government from time to time.


An officer who is found guilty of negligence, irregularity or misconduct may have his or her pension, gratuity or other benefit for which the office would have been eligible, be reduced or withheld.

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