“We will deal with it. We have to respect the decision of the court but we have a mechanism to protect the pensioners,” he told reporters after an event here today.

Anwar, who is also the finance minister, was asked about the financial implications of the Federal Court’s decision to nullify amendments to the Pensions Adjustment (Amended) Act.

The amendments introduced a new scheme that increases pension payments annually by 2%.

The apex court’s decision means that the older version of the law which contains the old pension adjustment scheme will be restored, as the new amendments in 2013 have been invalidated.

Under the old scheme, the pension of government retirees would be revised based on the prevailing salary of incumbent civil servants in the same grade.

Yesterday, civil service union Cuepacs urged the government to maintain the 2% annual increment for pensioners until Putrajaya carries out a salary and pension adjustment for civil servants.

Cuepacs president Adnan Mat proposed that the quantum could be retained by offering alternative forms of incentives, such as cost of living allowance, instead of discontinuing the increment.

He said it was unfair to withdraw privileges enjoyed by pensioners without replacing them with other incentives.

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