The Federal Court today overturned the decision in a pension dispute involving retired senators, ruling that they were not entitled to an increment in their pension when the salaries of serving MPs are raised.

A three-judge panel led by Chief Judge of Malaya Hasnah Mohammed Hashim allowed the appeals by the government, the Public Service Department (PSD) director-general, and the chief administrator of Parliament.

This decision reversed the Court of Appeal’s decision that...