JUDGMENT
Introduction
[1] The appellants in this case, who were the plaintiffs at the court below, were former members of the upper house of Parliament. They retired from the Senate prior to the coming into force of the Members of Parliament (Remuneration) (Amendment) Act 2015, by the terms of which salaries of the then-serving members of the Senate and House of Representatives were significantly increased.
[2] The appellants argued that their pensions ought to be adjusted to account for the increased salaries of the members of the Senate.
Background
[3] Section 3 of the Members of Parliament (Remuneration) Act 1980 provides for the salaries of members of the two Houses of Parliament. Section 8 of the Act in turn provides for the entitlement to pension, gratuity and other benefits, which is prescribed in the First Schedule to the Act.
[4] In 1981, the First Schedule was amended by the introduction of para 19A to grant to the Yang di-Pertuan Agong the power to amend the First Schedule. This power is expressed by para 19B of the First Schedule to be exercisable by the Prime Minister or by any person authorised in writing by the Prime Minister.
[5] On 4 March 2015, in exercise of the powers under para 19A, para 20 of the First Schedule was amended by the Members of Parliament (Remuneration) (Amendment of First Schedule) Order 2015 (the "2015 Order"). Prior to this amendment, the pension of previous members of Parliament would be adjusted to take into account revisions in the salaries of currently serving members. The original para 20 read as follows:
20. Recomputation of pension and derivative pension.
(1) Whenever the salaries of a Member are revised, the salary on which a pension granted under para 2 or a derivative pension granted under paras 5, 6 or 7 is based shall be adjusted to the revised salary as appropriate and the pension or derivative pension recomputed accordingly.