The Financial Express, one of the leading newspapers recently published a news article on the Central Government’s plan to reduce the retirement age of employees from 60 to 58. This news shocked the central government employees.
“Reducing the retirement age of central government employees from 60 to 58 will help to solve the unemployment problem in India?”
Reasons cited for decreasing the retirement age from 60 to 58:
The following reasons are attributed for decreasing the present age of retirement:
1) To create more employment opportunities for the youth
2) To increase the contribution of younger employees in the government sectors and
3) To compensate the loss accrued due to payment of allowances
Unemployment issue:
None can have any disagreement about the fact that employment opportunities should be provided for the unemployed. There are so many ways for solving the unemployment problem. They are:
1) Introducing new employment policies
2) Filling all the positions lying vacant and
3) Promoting self-employment by introducing new schemes and providing suitable facilities and many more ways can help to solve the problem of unemployment.
Increasing the retirement age from 60 to 62 for scientists:
In the Rajya Sabha,in a written reply to a question raised on increasing the retirement age for scientists from 60 to 62 , the Government said, “it is under consideration”.
The important reasons for increasing the retirement age for scientists are:
1) Their experience and expertise should benefit the younger generation and
2) The average life span has increased.
Allowance issue:
Extra allowance that has to be paid is cited as a reason for bringing down the retirement age of employees from 60 to 58. However, in reality, the pay commission is set up only once in 10 years and benefits the central government employees.
“In the long interval of 10 years, only these allowances help the employees to cope with inflation”.
In the past, the average service period of a central government employee was 30 to 40 years. Presently, as the age limit for appointment has been relaxed, the average service period has come down to 20 to 30 years. Due to this, an employee can only have 2 or 3 pay commissions in his service period.
In this situation, citing allowance as a reason for decreasing retirement age and altering the present allowance rates will adversely affect the economic condition of central government employees.
Average retirement age in the world:
The average retirement age of government servants in many country is between 63 and 65. Comparatively speaking, even the age of 60 is obviously a very early age for retirement. In this context, we do not know whether the central government employees will accept 58 as the age of retirement.
Will early retirement solve the unemployment problem?
Employment for unemployed is a very important issue. It is the duty of the Government to provide employment opportunity to all the Gen Y and lead them in a better way. The hope and aspiration of every youth in this country is to get a good job. They do not expect the retirement age of central government employees to be brought down from 60 to 58.
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Senior officers/officials though have expertise do not have the enthusiasm. Crippled with disease,dirty politics in the office and other family problems they spent useful office time in gossiping which adversely affects the working spirit of young colleague. Besides,salary paid to a such a person can employ three/four young person which can reduce the unemployment and related problem in the country.A person who has worked for 33 years or of the age of 58 , in my opinion he has already served a lot. There fore i am in favour of reducing the retirement age from 60 to 58 or 33 years of complete service which ever is earlier and I am hopeful, Modi Government will do it.
It would be a very good decision if retirement age of central government restricted on completion of 33 years of service of 58 years of age whichever is earlier to induct new generation in govt. We can not compare it with other countries as social, economic & other condition are different in India.
Retirement age by 58 years to Govt. employees will snatch the major benefits which so far they are getting. If the govt. thinks it so to retire govt. employees at the age of 58 years, it should be uniform throughout irrespective of employees of state govt., scientists, judiciary, teachers etc. even the MLAs , MPs, Ministers after the age attaining 53 years will not be entitled for elected – because all are the govt. beneficiaries and being paid from the pockets of citizens of India.
Raising the retirement age is not correct. It is good if MG reduces it to 58 years as it will give employment to many thousands of youth.
Sir,
I am Govt servant presently posted in Delhi. I am favour of reducing retirement age to 58 from 60. We should give change to the unemployee’s also.
The age of retirement should be increased upto 62 to 65 years The Central Government has already increased the retirement age of professors in all the central universities from 62 to 65 years, two years back. Before that, the retirement age of professors of Central Universities was 62 with the provision for re-employment for three years after the superannuation
Sir retirement age is 60 to 58 better because so many employees retired but no recruitment those retired their work held up next senior so load is more than their work so please kindly recruitment. v.v. rao
sir pl send updates to my email address
DATED.11-12-2014.
SUBJECT:-NEED FOR RAISING THE RETIREMENT AGE OF CENTRAL GOVERNMENT EMPLOYEES FROM 60 YEARS TO 65 YEARS.
THE MATTER TO INCREASE THE RETIREMENT AGE OF CENTRAL GOVT EMPLOYEES FROM 60 YEARS TO 65 YEARS MAY KINDLY BE CONSIDERED SERIOUSLY BY THE CENTRAL GOVERNMENT .
NOW A DAYS, WHEN GOVERNMENT EMPLOYEES ARE BEING RETIRED AT THE AGE OF 60 YEARS, THEY REMAIN IN VERY GOOD HEALTH. HOWEVER, IN SOME CENTRAL GOVERNMENT GOVERNMENT DEPARTMENTS THESE RETIRED EMPLOYEES ARE BEING RE-EMPLOYED ON CONSULTANCY BASIS. DUE TO THEIR LONG EXPERIENCE IN GOVERNMENT SERVICE, THESE OFFICIALS BECOME EXPERTS IN THEIR FIELD OF WORK.THE CENTRAL GOVT SHOULD TAKE THEIR HELP FOR SOME MORE YEARS BY INCREASING THEIR RETIREMENT AGE FROM 60 YEARS TO 65 YEARS.
FURTHER, THE LIFE EXPECTANCY OF AN AVERAGE GOVERNMENT EMPLOYEE HAS ALSO GONE UP FROM 70 YEARS TO 80 YEARS. RETIRING A GOVERNMENT EMPLOYEE AT THE AGE OF 60 YEARS, WITH MANY MORE YEARS OF GOOD HEALTH LEFT IN HIM WOULD BE AN ADVANTAGE FOR THE CENTRAL GOVERNMENT TO KEEP THE GOVERNMENT AND HIS SERVANTS HEALTHY, WEALTHY AND WISE.
I HOPE THE GOVERNMENT WOULD SERIOUSLY CONSIDER THE REQUEST. EVEN OUR CENTRAL GOVERNMENT SCHOOL TEACHERS HAVE ALREADY BEEN GIVEN THIS BENEFIT BY RAISING THEIR RETIREMENT AGE UPTO 62 YEARS AND THEY ARE DOING A WONDERFUL JOB WITH THEIR USEFUL WISDOM ,KNOWLEDGE AND HARD WORK. IN THE SAME WAY THE CENTRAL GOVERNMENT EMPLOYEES WOULD ALSO PROVE TO BE AN ASSET UPTO THE AGE OF 65 YEARS.
BELOW ARE SOME OF THE PREVIOUS PUBLISHED REFERENCES FOR THE KIND CONSIDERATION OF THE CENTRAL GOVERNMENT IN RAISING THE RETIREMENT AGE OF CENTRAL GOVERNMENT EMPLOYEES FROM 60 YEARS TO 65 YEARS..
ONE OF THE RECENT EXAMPLES OF A RETIRED PERSON BEING RE-APPOINTED IN THE PMO AS THE PRINCIPAL SECRETARY TO THE PRIME MINISTER AT THE AGE OF 69 YRS IS A GOOD EXAMPLE OF HOW A RETIRED PERSON CAN BE VALUABLE TO THE GOVERNMENT AFTER RETIREMENT. HIS DETAILS ARE AS FOLLOWS:-
SH.NRIPENDRA MISRA, IS AN INDIAN RETIRED CIVIL SERVANT NOW APPOINTED AS THE PRINICIPAL SECRETARY TO THE PRIME MINISTER OF INDIA THROUGH AN ORDINANCE ISSUED BY THE GOVERNMENT OF INDIA. HE ASSUMED OFFICE ON 25 MAY 2014. HE WAS BORN ON 8 MARCH 1945.NOW HIS AGE IS MORE THAN 69 YEARS. HE WAS THE FORMER CHAIRMAN OF THE TELECOM REGULATORY AUTHORITY OF INDIA AND IS A 1967 BATCH INDIAN ADMINISTRATIVE SERVICE OFFICER FROM UTTAR PRADESH CADRE.
I HOPE, A SUITABLE POSITIVE DECISION WOULD BE TAKEN BY THE CENTRAL GOVERNMENT IN THE MATTER VERY SERIOUSLY BY RAISING THE RETIREMENT AGE OF ALL CENTRAL GOVERNMENT EMPLOYEES UPTO THE AGE OF 65 YEARS.
SUBJECT:- REQUEST FOR RAISING THE RETIREMENT AGE OF CENTRAL GOVERNMENT EMPLOYEES FROM 60 YEARS TO 65 YEARS.
RESPECTED SIR,
I WISH TO HUMBLY SUBMIT THAT THE MATTER TO INCREASE THE RETIREMENT AGE OF CENTRAL GOVT EMPLOYEES FROM 60 YEARS TO 65 YEARS MAY KINDLY BE CONSIDERED SERIOUSLY BY THE CENTRAL GOVERNMENT .
NOW A DAYS, WHEN GOVERNMENT EMPLOYEES ARE BEING RETIRED AT THE AGE OF 60 YEARS, THEY REMAIN IN VERY GOOD HEALTH. HOWEVER, IN SOME CENTRAL GOVERNMENT GOVERNMENT DEPARTMENTS THESE RETIRED EMPLOYEES ARE BEING RE-EMPLOYED ON CONSULTANCY BASIS. DUE TO THEIR LONG EXPERIENCE IN GOVERNMENT SERVICE, THESE OFFICIALS BECOME EXPERTS IN THEIR FIELD OF WORK.THE CENTRAL GOVT SHOULD TAKE THEIR HELP FOR SOME MORE YEARS BY INCREASING THEIR RETIREMENT AGE FROM 60 YEARS TO 65 YEARS.
FURTHER, THE LIFE EXPECTANCY OF AN AVERAGE GOVERNMENT EMPLOYEE HAS ALSO GONE UP FROM 70 YEARS TO 80 YEARS. RETIRING A GOVERNMENT EMPLOYEE AT THE AGE OF 60 YEARS, WITH MANY MORE YEARS OF GOOD HEALTH LEFT IN HIM WOULD BE AN ADVANTAGE FOR THE CENTRAL GOVERNMENT TO KEEP THE GOVERNMENT AND HIS SERVANTS HEALTHY, WEALTHY AND WISE.
I HOPE THE GOVERNMENT WOULD SERIOUSLY CONSIDER THE REQUEST. EVEN OUR CENTRAL GOVERNMENT SCHOOL TEACHERS HAVE ALREADY BEEN GIVEN THIS BENEFIT BY RAISING THEIR RETIREMENT AGE UPTO 62 YEARS AND THEY ARE DOING A WONDERFUL JOB WITH THEIR USEFUL WISDOM ,KNOWLEDGE AND HARD WORK. IN THE SAME WAY THE CENTRAL GOVERNMENT EMPLOYEES WOULD ALSO PROVE TO BE AN ASSET UPTO THE AGE OF 65 YEARS.
BELOW ARE SOME OF THE PREVIOUS PUBLISHED REFERENCES FOR THE KIND CONSIDERATION OF THE CENTRAL GOVERNMENT IN RAISING THE RETIREMENT AGE OF CENTRAL GOVERNMENT EMPLOYEES FROM 60 YEARS TO 65 YEARS..
ONE OF THE RECENT EXAMPLES OF A RETIRED PERSON BEING RE-APPOINTED IN THE PMO AS THE PRINCIPAL SECRETARY TO THE PRIME MINISTER AT THE AGE OF 69 YRS IS A GOOD EXAMPLE OF HOW A RETIRED PERSON CAN BE VALUABLE TO THE GOVERNMENT AFTER RETIREMENT. HIS DETAILS ARE AS FOLLOWS:-
SH.NRIPENDRA MISRA, IS AN INDIAN RETIRED CIVIL SERVANT NOW APPOINTED AS THE PRINICIPAL SECRETARY TO THE PRIME MINISTER OF INDIA THROUGH AN ORDINANCE ISSUED BY THE GOVERNMENT OF INDIA. HE ASSUMED OFFICE ON 25 MAY 2014. HE WAS BORN ON 8 MARCH 1945.NOW HIS AGE IS MORE THAN 69 YEARS. HE WAS THE FORMER CHAIRMAN OF THE TELECOM REGULATORY AUTHORITY OF INDIA AND IS A 1967 BATCH INDIAN ADMINISTRATIVE SERVICE OFFICER FROM UTTAR PRADESH CADRE.
I HOPE, A SUITABLE POSITIVE DECISION WOULD BE TAKEN BY THE CENTRAL GOVERNMENT IN THE MATTER VERY SERIOUSLY BY RAISING THE RETIREMENT AGE OF ALL CENTRAL GOVERNMENT EMPLOYEES UPTO THE AGE OF 65 YEARS.
THANKING YOU.
YOURS FAITHFULLY,
ENCL:-AS ABOVE.
SD/-
(RAJIV PATHAK).
Qr.598,Sector-9,
R.K.PURAM,
NEW DELHI.-110022.
E.Mail:[email protected]
SOME OF THE REFERENCES PUBLISHED IN THE PRINT MEDIA (SOME TIME BACK) JUSTIFYING THE RAISING OF THE RETIREMENT AGE OF CENTRAL GOVERNMENT EMPLOYEES FROM 60 YEARS UPTO THE AGE OF 65 YEARS – REFERENCE-PARLIAMENTARY PANEL IN THE LAST LOK SABHA
On Saturday, February 8, 2014 01:48 PM.
A parliamentary panel has urged the Centre to raise the retirement age to 65 years, noting that growing lifespan was adding to the need for “productive ageing”.
The recommendation for increase in retirement age comes with a reminder that senior citizens would form 12.4% of the total population in 2026 from 7.5% in 2001.
“The committee feels that with the increase in life expectancy and relatively better state of health of people, the government needs to look at continuity of employment up to 65 years,” said the report of standing committee of Parliament on social justice and empowerment tabled on Friday.
It also recommended that government look at greater post-retirement opportunities for senior citizens and create greater financial support for the elderly by hiking the old age pension to Rs 1,000 per month from the present Rs 200 for those above 60 years and Rs 500 for those above 80 years.
While suggesting immediate redressal for the ageing population, the panel sought to train the government’s focus on the 60-plus group by pointing out that its growing numbers would be a serious challenge in health and social care.
Specifically, it underlined that as per population projections, the 80-plus bloc, the most-vulnerable group, would see a sharper rise in numbers.
The urgency of parliamentarians towards senior citizens comes amid growing global realization that increasing lifespan is creating a new demographic bloc requiring state intervention.
Seeking government attention, the committee noted that senior citizens comprised 7.5% of the total population in 2001 but their share is likely to increase to 12.4% in 2026. Importantly, UN projections say while India’s population will rise by 55% by 2050, that of 60-plus would increase by 326% and that of 80-plus would go up by 700%.
Given the rising challenge, the panel headed by Hemanand Biswal found the government response inadequate, noting that “issue of rapid population ageing in the country has not received due attention of the government and the community at large”.
The panel said special focus should be on the octogenarian bloc. “This age group is the most vulnerable and runs the risk of getting dementia, Alzheimer’s disease, Parkinson disease, depression in their older years,” it said, and asked the Centre to constitute an expert group of relevant government departments to devise specialized healthcare programme for them.
Source: http://timesofindia.indiatimes.com/…/articlesh…/30015235.cms
Parliamentary panel urged to raise the retirement age to 65 years…
Posted: 07 Feb 2014 10:57 PM PST
Parliamentary panel urged to raise the retirement age to 65 years…
Raise age of retirement to 65: House panel
NEW DELHI: A parliamentary panel has urged the Centre to raise the retirement age to 65 years, noting that growing lifespan was adding to the need for “productive ageing”.
The recommendation for increase in retirement age comes with a reminder that senior citizens would form 12.4% of the total population in 2026 from 7.5% in 2001.
“The committee feels that with the increase in life expectancy and relatively better state of health of people, the government needs to look at continuity of employment up to 65 years,” said the report of standing committee of Parliament on social justice and empowerment tabled on Friday.
It also recommended that government look at greater post-retirement opportunities for senior citizens and create greater financial support for the elderly by hiking the old age pension to Rs 1,000 per month from the present Rs 200 for those above 60 years and Rs 500 for those above 80 years.
While suggesting immediate redressal for the ageing population, the panel sought to train the government’s focus on the 60-plus group by pointing out that its growing numbers would be a serious challenge in health and social care.
Specifically, it underlined that as per population projections, the 80-plus bloc, the most-vulnerable group, would see a sharper rise in numbers.
The urgency of parliamentarians towards senior citizens comes amid growing global realization that increasing lifespan is creating a new demographic bloc requiring state intervention.
Seeking government attention, the committee noted that senior citizens comprised 7.5% of the total population in 2001 but their share is likely to increase to 12.4% in 2026. Importantly, UN projections say while India’s population will rise by 55% by 2050, that of 60-plus would increase by 326% and that of 80-plus would go up by 700%.
Given the rising challenge, the panel headed by Hemanand Biswal found the government response inadequate, noting that “issue of rapid population ageing in the country has not received due attention of the government and the community at large”.
The panel said special focus should be on the octogenarian bloc. “This age group is the most vulnerable and runs the risk of getting dementia, Alzheimer’s disease, Parkinson disease, depression in their older years,” it said, and asked the Centre to constitute an expert group of relevant government departments to devise specialized healthcare programme for them.
Source: http://www.timesofindia.indiatimes.com
[http://timesofindia.indiatimes.com/…/articlesh…/30015235.cms
Wednesday, May 29, 2013
Union government wants retirement age 62
The Union Government is seriously considering raising the retirement age to 62 for Central Government employees. Obviously, if the Congress announces this before the Lok Sabha polls, it could expect a sizeable vote share. North Block, which houses the Union Ministry of Finance would be more than happy to have 62 years as the retirement age because for next two years the pension funds can accumulate.
The UPA2 also wants to put the next government in fiscal tight spot, or what is called the War Room effect of the AICC.
Source: http://www.news.rediff.com
Tuesday, June 04, 2013
Central govt employees’ retirement age to be extended by 2 years to 62 – Financial Express
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 government’s finances. Subsequently, all state governments followed the Centre’s 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.**********
There’s 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 Rs 1,735,527 crore or 55.88% of GDP at market prices of 2004-05.
Source: http://www.financialexpress.com
[http://www.financialexpress.com/…/central-govt-emplo…/784342
]
Sunday, December 02, 2012
Proposal of raising the retirement age of government employees..!
Is raising retirement age of Central Government Employee a threat for employment prospects of youth ?
At the end of Every Year people used to talk about the proposal of raising the retirement age of government servants. Normally the people who are at the verge of retirement from government service are eagerly expecting the government to increase the retirement age. The Government servants especially those who are in the pay structure of Pay band –I will have to face financial burden as the Pension amount they will be paid after commutation will be very meager and it is not sufficient enough to meet their expenses of day to day life. Because the Government employees those who are drawing grade pay of Rs.1800/-, 1900/-, 2000/-, 2400/-and 2800/- will get only around Rs.20000 as the gross salary of every month. It is understood that one cannot lead a financially successful life with this income alone. So many government servants, to run the life, forced to avail loans from where ever they can get. At the end, they are badly in debt at the time of retirement.
That is why the government servants don’t feel happy about retiring from service. But extending the service of two years from 60 to 62 will not solve all their problems. It will help them to put off facing the financial crisis for at least two years. But the Government does not consider this aspect any way to increase the retirement age of central government employees from 60 to 62.
Extension of Service to Bureaucrats
The Central Government always wanted to make better use of the knowledge and experience of its Bureaucrats even after their retirement. In other words Government wants to secure their top brass preferably IAS officers by giving service extension. Sometime extending their service for further period of two year is difficult task for the concerned department. Extension in service can be given only in “exceptional circumstances”. For example recently home Ministry wanted to give one year extension to its former Director-General of the Central Reserve Police Force (CRPF) as he has done commendable work in his stint . But it was denied by the Appointments Committee of the Cabinet (ACC). However, it was mainly the service rules that led to the ACC declining Home Ministry’s proposal. Normally IAS officers offered multiple service extension.
The Retirement Age of Professors
The Central Government has already increased the retirement age of professors in all the central universities from 62 to 65 years, two years back. Before that, the retirement age of professors of Central Universities was 62 with the provision for re-employment for three years after the superannuation. That time there was some allegation that this provision of re-employment was being “misused” by the authorities who took such decisions in an “arbitrary” manner. So Central Government decided to increase the retirement age of Professors to 65 uniformly.
One year extension for state government employees
Recently the Punjab government’s decided to offer an extension of one year in service to its retiring employees with effect from October 2012 . The condition laid down for this offer was 1.Employees will be given an option to continue at the same salary.2. They will get no increments in salary during the extension period but will get any due promotions. The decision to give the extension was taken to meet the shortage of 35,000 employees who are expected to retire in next one year. Since, the move may affect employment prospects of the youth, the government increased the maximum age limit for recruitment into government service from 37 to 38 years.
The Retirement Age of Judges
On August 18, 2012, The Prime Minister Dr. Manmohan Singh, speaking at the 150th year celebrations of the Bombay High Court, said the government was in favour of raising the age of retirement of High Court judges. Presently, Supreme Court judges retire at 65 and High Court judges at 62.
Re engagement of Retired Employees in Railways
Whether it is true or not but it is believed that Railway gave its consensus to raise the retirement age of its employees, as it is already re-engaging their retired employee for daily remuneration after their retirement till the age of 62. It was followed from 1998 with the reference of Railway Board Letter No.E(NG)II/97/RC-4/8 dated 03.02.98. In 2009 the rates of Daily Allowances also revised for engagement of retired employees on daily remuneration basis.
So keeping in view of the entire above aspects one can assume that the state and central governments and some Departments are in fovour of increasing the retirement age of Central and State government employees.
But Social Activists and youth associations are against this proposal and they expressed their dissatisfaction over this and telling that the retirement age of central government employees should not be increased to 62 as increasing the retirement age is a threat for employment prospects of the youth.Many of them opined that instead of increasing, the retirement age should be reduced to 58 so that the youngsters will be given opportunity to get into Central government services.
Source : http://www.gservants.com
[http://gservants.com/…/is-raising-retirement-age-of-ce…/
]
Other Related posts are :-
Thursday, February 17, 2011
Retirement age (62) of central government employees
Retirement age of central government employees from 60 to 62..!
Will the Retirement age of central government employees go up from 60 to 62 years?
As we heard every time before the budget session of parliament, this time also a rumor about raising the retirement age of central government employees from 60 to 62 is spreading here and there among the central government employees. May be the officers at the verge of retirement be happy about this rumor. Otherwise there is no reason to be happy about this rumor.. As India is having 51% of people below the age of 25 years , it is not a good news to millions of jobless people. Sources close to the trade union movements and Federations told that there is no such proposal with the government since none of the workers federations have demanded it.
In 2009, The Manmohan Singh government was serious in weighing the pros and cons of increasing the retirement age for government employees from 60 to 62 years.That time it was believed that the finance ministry had prepared a detailed note on the issue and sent it to the prime minister’s office (PMO) But the government shelved the idea, largely because of fears that a higher retirement age would adversely impact employment generation and create resentment in the bureaucracy because of blocked promotional avenues. At that time, it was the Department of Personnel and Training (DoPT) that was asked by the PMO to study the issue and prepare a report.
The BJP led National Democratic Alliance government had raised the retirement age from 58 to 60, in 1998, a move that benefitted 90,000 government servants and 50,000 defence personnel. At the time, the logic was: the retirement of 140,000 employees would have cost Rs 5,200 crore whereas paying salaries cost only Rs 1,493 crore.
Incase if the decision is finally taken, it will only be the third time the government will have raised the retirement age. Jawaharlal Nehru was the first prime minister to have increased the age of superannuation from 55 to 58 following the 1962 war with China. The Atal Bihari Vajpayee government did it a second time in 1998.
Source: Vinmoney – Monday, May 02, 2011
Central Government employees’ retirement age to be extended by 2 years to 62 years.
New Delhi: 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 government’s finances. Subsequently, all state governments followed the Centre’s 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.
There’s 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.
PIL on retirement age of civil servants
Lucknow, Sep 24 (PTI) A PIL was filed in the Lucknow bench of the Allahabad High Court today, seeking direction to extend the retirement age of officers of India Civil Services from 60 years to at least 65 years.
Neelendra Pandey, a local social worker, stated in his PIL that he is aggrieved with discrepancies in the retirement policy of different government services.
He said IAS, IPS and IFS officers retire at 60 years, while people of about 80 years and sometime even more continue as President, Prime Minister, Governor and Chief Minister, Minister and MLAs.
Professors and doctors of Central universities and institutions like AIIMS retire at 65 and primary school teachers retire at 62, Pandey said while terming the retirement policies as defective and challenging the same.
He requested the court to direct Central government to consider making a universal retirement policy for all public servants.
Source:— PTI
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