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Under the Federal Constitution, pension is the responsibility of the Federal Government as provided under Article 74 9th Schedule, List I, Para 6(d) Federral List. Di bawah Perlembagaan Persekutuan, pencen merupakan tanggungjawab Kerajaan Persekutuan seperti mana ditetapkan di bawah Perkara 74 Jadual Ke-9, Senarai I, Para 6(d) Senarai Persekutuan. The protection of pension right is stipulated under Article 147 of the Constitution as follows:-

"147 (1) The law applicable to any pension, gratuity or other like allowance (in this Article referred to as an "award") granted to a member of any of the public services, or to his widow, children, dependant or personal representatives, shall be that in force on the relevant day or any later law not less favourable to the person to whom the award is made".