Tuesday, May 03, 2011

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 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.

Courtesy;financialexpress

23 comments:

  1. I agree with the decision of central govt. employee which is extended from 60 to 62.

    ReplyDelete
  2. i did not agree with the decision of central govt employee for extended retirement age from 60 to 62 years. the reason is behind that due to this decision the youth frustrated.

    ReplyDelete
  3. in government employes does not work after 50 years,so 55 years is enough....

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  4. This policy is very adverse, as India is in strong financial position and there is no need to increase retirement age. Government Should re-consider its decision and postponed till implementation of 7th pay commission.

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  5. I agree because:
    a) there no retirement age for politicians
    b) UGC hoders retirement age is 63-65
    c) Judiciary 62-65
    d) constitutional posts 65
    e) central autonomous bodies-62-70
    f) commissions and statutory boards ( where retired officials and judges are appointed with hefty packages -no age limit, some times upto there death.

    ReplyDelete
  6. There is no need to increase the retirement age from 60 to 62. The reason is behind that due to this decision the youth frustrated.
    By
    Poovaraj S

    ReplyDelete
  7. Increase the retirement age from 60 to 62 is required for those employees are joining after the age of 30 years and more.But there should be 35 years for qualifying service and retirement at the age of 62 years whichever is earlier.

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  8. Dear Sir

    Retirement age should be increased to 62 years,to avoid the financial crises, as well as to save govt exchequre for sustainable development of the country.

    ReplyDelete
  9. good decision to increase retirement age from 60 to 62 as the experienced employee will perform the office work expeditely and seriousl and guard the administrator for all sort of decision .it is the solution of financial crisis too. there are many vacancies which should be filled up from the young generation ,so that there should not be any harmful to the young society as the govt.will decide to increase the retirement age from 60 to 62.

    ReplyDelete
  10. Retirement age should be increased to 62years,to avoid the present financial crises,as well as to save govt.exchequer for sustainable development of the country.

    ReplyDelete
  11. Increase the retirement age from 60 to 62 is required for those employees are joining after the age of 30 years and more.But there should be 35 years for qualifying service and retirement at the age of 62 years whichever is earlier.

    ReplyDelete
  12. I agree because:
    a) there no retirement age for politicians
    b) UGC holders retirement age is 63-65
    c) Judiciary 62-65
    d) constitutional posts 65
    e) central autonomous bodies-62-70
    f) commissions and statutory boards ( where retired officials and judges are appointed with hefty packages -no age limit, some times up to there death.

    ReplyDelete
  13. Extension of retirement age 60 to 62 years is urgently required to manage the present financial stability of govt.

    ReplyDelete
  14. There is required to increase the retirement age from 60 to 62. The reason is behind that due to this decision the youth will be happy think over their future retirement age.

    ReplyDelete
  15. I agree with the decision of central govt. employee which is extended from 60 to 62.

    ReplyDelete
  16. good decision to increase retirement age from 60 to 62 as the experienced employee will perform the office work expediently and seriously and guard the administrator for all sort of decision .it is the solution of financial crisis too. there are many vacancies which should be filled up from the young generation ,so that there should not be any harmful to the young society as the govt.will decide to increase the retirement age from 60 to 62.

    ReplyDelete
  17. 60 or 62 only difference 2, not far difference
    an employee 60 years old is also like 62 years
    old,so that he can perform his official work smoothly and responsibly as before as he was,more over he will perform his official duty
    spontaneously by using his office experience as he would get more two years in his official
    life

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  18. 60 & 62 is not far difference so that the experienced employee can serve as usual ,good decision of increaseing the retirement age by two years

    ReplyDelete
  19. 60 & 62 is not far difference,only two years, but two years is most expensive and important
    to govt.to keep up official work smoothly and responsibily from the experienced employee,
    so that increasing two years in retirement age
    is suitble decision for the administration.

    ReplyDelete
  20. 60 or 62 is not far difference,experienced employees will provide service to the office with full experience to the govt. so that the decision of increasing retirement is acurate and appropriate for favour of government .

    ReplyDelete
  21. Yes .. It is good decision. This decision should be taken by government side, because

    a) there no retirement age for politicians
    b) UGC holders retirement age is 63-65
    c) Judiciary 62-65
    d) constitutional posts 65
    e) central autonomous bodies-62-70
    f) commissions and statutory boards ( where retired officials and judges are appointed with hefty packages -no age limit, some times up to there death.

    Please take the decision as soon possible.

    ReplyDelete
  22. Attention UPA Govt!!

    It is hard but the truth is the next government would be BJP, who is never against hiking retirement age. There are record number of employees, who are on verge to retire in the next 2 years. Considering the fact that the last retirement age which was enhanced from 58 to 60 was done by BJP Government and the UPA has created negativity among the employees as they were many rumours about the increase in retirement age to 62. Now in present situation the employees are very dissappointed and wants to hike the retirement age to 62.

    So the best option for the UPA Government is to raise the retirement age and consider the vote bank of the to-be-retired employees and you may come into power.

    Unless this, It is practically impossible for UPA to survive as there is lot of negativity among Central Govt Employees. And as far youth is concerned it would not impact them as just 4% of Indian job market has central government jobs!!

    And it is already proven that just 30% of youth only would caste their vote and various surveys reveal that they are seeking for change in Government.

    So the final verdict is, Raise the Retirement age to 62 and capture the vote bank, if UPA wants to come into power in 2014!!

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  23. Increasing retirement age from 60 to 62 years shall give in positive results. Many essential /new infra projects have been planned in our country but due to no availability of budgetary support /allocation, the projects either delayed , discarded or not worked out . Increasing retirement age shall instantly generate huge amount of funds in government treasury for current time and so on regularly due to holding on payment of retirement benefits. In addition, this will automatically contribute to continuous availability of the matured skill , source funds for launching of essential /new projects , earning of more revenue from taxes ,lesser expenses on pension as well as generation of employment through new projects etc. These are the needs of the time for our nation to come in parity with other countries of the world who have adopted /implemented the policy of enhancing the retirement age much earlier and now are more advanced .Further, it has been observed that life expectancy, however increased continuously over past few decades due to better and improved medical facilities and more health cautiousness among elderly people. Also, it has been seen that people use to re-join jobs in private organisation after being retired from government sector. They now , get pay packet and enjoy pension as well with retirement benefits ( PF, GRATUITY, LEAVE ENCASHMENT,PENSION SURRENDER … ) . Government /people should think over the issue whether there is gain or loss for the nation .

    ReplyDelete

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