Thanks for the detailed answer!
Changing the function sinature seams to have solved the problem:
CREATE OR REPLACE FUNCTION ceilDecimal(num numeric) RETURNS float AS
$BODY$
BEGIN
RETURN CEIL(num * 100) / 100;
END
$BODY$
LANGUAGE 'plpgsql';
SELECT ceilDecimal(0.07);
ceildecimal
-------------
0.07
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