Central govt employees retirement age to be extended by 2 years to 62
The government is planning to extend the retirement age of all central government employees by two years from the current 60 to 62 years. Sources said that an in-principle decision has been taken in this regard and the department of personnel and training (DoPT) has begun the work to implement the same. A formal announcement to this effect is expected this year itself.
The last time the government extended the retirement age of central government employees was in 1998. It was also a two-year extension from 58. This was preceded by the implementation of the 5th Pay Commission, which had put severe strain on governments finances. Subsequently, all state governments followed the Centres policy by extending the retirement age by two years. Public sector undertakings followed suit too.
The decision to extend the retirement age is well-timed both politically and economically.
The UPA government reckons the move would be a masterstroke. At a time when it is buffeted by several corruption cases, it is felt that the extension of the retirement age will go down well with the middle classes. Economically also, the move makes sense because by deferring payment of lump sum retirement benefits for a large number of employees by two years, the government would be able to manage its finances better.
An in-principle decision has been taken to increase the retirement age by two years within this year itself. This would reduce the burden on the fisc from one-time payment of retirement benefits for employees including defence and railways personnel, an official involved in the discussion said. With the fiscal consolidation high on the government’s agenda, this deferment would come handy.
Theres some flip side too if the retirement age is extended by two years. Those officials empanelled as secretaries and joint secretaries would have to wait longer to actually get the posts. And of course, there is the issue of average age profile of the civil servants being turning north.
It is also felt that any extension is not being fair with a bulk of people who still look for jobs in the government.
However, officials point out that at least it prevents an influential section of the bureaucracy to hanker for post-retirement jobs with the government like chairmanship of regulatory bodies or tribunals.
As it is, a sizeable section of senior civil servants work for three to five years after the retirement in some capacity or the other in the government, said a senior government official. The retirement age of college teachers and judges are also beyond 60.
As per a study, the future pension outgo for the existing Central and State government employees is estimated at a staggering R1,735,527 crore or 55.88% of GDP at market prices of 2004-05.
Source: http://scm-bps.blogspot.in
ygmkrishna says
It is a very dangerous view. Because the youth are eagerly waiting for their jobs. But at the age of 60+ years one cannot perform like a person with an age of 24 years. And also with the salary at the age of 60 the govt. will get 3 persons in the new reruit and the production also increased. Already at the age of 57, wr are thinking about a special VRS like in Banks.
It is shamefull to Modi Govt. to increase the age to 62 years.
Ashraf says
My brother is having retirement in April he can be extended for 2 years.or not
divyanshu says
Res sir I read the news of 10 th march ’17 regarding govt is thinking to extension of 2 year i.e. 60 to 62 .This is a very surprising.that once we heard that govtis going to reduce retirement age i.e. 33 year service or 58 year age. Also those employees whose c.r. is not satisfactoriely the formula 30 year service or 55 year age whichever is earlier.Looking to the both formula I think that it should be a very good decission because we look at our sorroundings merely highly qualified people seeking govt job due to life security also in our Rlys large no.of qualified people like degree engineer masters in verious field are joining group D post like poitman p.p. sweeper al/p etc. That is extremely exploitetion as well as disregards of education .large group of people appearing competetion exam for very few post i.e. in gujarat recently 6.5 lacks candidate appeared in 17000 police constable vacancies out of which 52000 declare success This is only an example but every where large no of people seeking govt job and unemployed for this govt has to do curtail the retirement age and open the door for indian youth they are more knowing than ageed person like use of computr also quick work my point may pl.to be put up over this desk for discussion with the people. Thanks
Immanuel C. Ganapathy says
If the Government going on increasing the retirement age by two years what about the fate of our children seeking jobs in govt. department. This will give temporary relief to the govt. Unemployment will be more.
Naresh chohan says
I am not agree