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
Anonymous says
For females retirement age is to be at 58 or 60 and for male performers skilled labour force be at 65 on the other hand govt should create employment opportunities for younger generations.as of employees at the age above 55 pay more taxes and the new employees pay less taxes up to 5 yrs of new job.There there is urgent need to rebook at enhancing retirement age at 62to 65 like other countries.It is also duty of the govt for wealth and creation.and retirement benefits be competitive with developed countries who pays texted honestly and smilingly.
Anonymous says
The GOI should enhance retirement at least 65 if not retirement benefits be like other countries where retirement is even after 65
So that retiring after 60 may not trace another job for better use of their skills
sita devi says
Very GOOD DECISION BUT STILL ITS JULY AND THE AGE IS NOT EXTENDED YET..PLZ INCRZ RETIREMENT AGE OF CENTRAL GOVT EMPLOYEES TO 62 YRS
A Legal says
the views expressed by different people out here totally outline the lack of government functioning, public policy and macro level policies. I think its an excellent stand keeping in mind 2 aspects: non performers should be compulsarily retiered as showcased int he past by this brilliant government and performers age should be increased. The age requirement was keeping in mind the health and well being at the time of passing of such law and with new increase in life expectancy rate etc the age should be progressively increased. The youth are getting their dues as more vacancies are there in the government. But there is no way the experience and maturity of a person be compensated by youth. please check the age limit for private sectors, judiciary and other fields you will know. Stop being stupid.If your kids are competant they can withstand all competition of age/reservation etc.
Excellent work by the government of balancing all interests and if it can increase the age it will be a great feat. Best wishes to the leadership.
Raghubir says
No body want to work for the country but the GOI intention is clear how to get work done by the skilled labour force to increase their life expectenvy like other countries where retirement is up to and more than the age of 65