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
NARENDER SINGH THAKUR says
AVERAGE LIFE EXPECTANCY IN INDIA HAS SIGNIFICANTLY GROWN. IT WAS 42 YEARS IN 1960 , 62 YEARS IN 2000 & RISEN TO 70 YEARS IN 2016. THESE STATICS ARE ENCOURAGING . PEOPLE DONT LOOK LIKE OLD PEOPLE AT EVEN 65 OR SOME AT EVEN 70 YEARS. GOVERNMENT SHOULD INCREASE THE RETIREMENT AGE TO 62.
Bibnoy Bhushan Kundu says
While the Central Govt. has enough fund to meet the retirement benefits and on the other hand, due to the present burning problem of “Unemployment” in India, there are no logical ground that the Govt. will persuade by logical argument into doing this. So provability of extension of retirement age from 60 to 62 years may be nil.
NARENDER SINGH THAKUR says
SEEING THE GROWING LIFE EXPECTANCY GOVT MUST INCREASE THE RETIREMENT AGE AS IS BEING DONE GLOBALLY . IT WILL GIVE BOOST TO INDIAN ECONOMY AS GOVT WILL BE FREE FROM GIVING RETIREMENT BENEFITS FOR 2 YEARS. THIS WILL GIVE POSITIVE IMPRESSION GLOBALLY .
J S Rajan says
The same old news is being circulated again.
Rajendra kumar says
No. It must not be raised, if possible, instead should be reduced to 58 years. Give
our youth chances to learn
and groom. As greed has no
limit. Practically and honestly,
in old age, mostly people do
not intend to work instead two
youngsters can be appointed
for one old employee salary.
divyanshu says
It will be a vry frustrating step if the govt decide.because in all our world India is having a meximum no. of youth .Also education ratio is higher than past. The present generation is hardworking as well as good grasping power and sound computer knowledge .Merely people want to come to join govt. service because of life security Also at present now a days there is wast unemplyoment in india i.e.in gujarat for the selecton of police constable 6.5 lacks people appeared for the17000 vacancies and 52000 declare successful. In those people merely were engineers .bds dr.bams dr. etc In rly large no of people doing job in group D catagory like pointman gangemen sweeper who possess higher educational qualification.If the age curtail by 2 years i.e. from 60 to 58 .so that so many young people can be entered .At present we heared that govt is going to declare 30 year service or 55 year for the bad c.r. emplyee and 33 years service or 58 year for good c.r. for all the cent.govt.emplyee That will be a good decission by govt.now govt.have to give a chance to new generation .