Central Government employees’ retirement age to be extended by 2 years to 62

 

Central govt employees’ retirement age to be extended by 2 years to 62

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.

 

Source: The Financial Express

May 2, 2011  Tags: ,   Posted in: CCS Rules, Pension, Retirement Age, Uncategorized 

20 Responses

  1. Satish - May 3, 2011

    It is a good move of the Govt. It will help the govt to curb the inflationary pressure as the retirement dues shall be withheld for the extended period. Besides it will motivate employees as well as their longevity is on the increase. Good luck employees.

  2. bhatia ashok - May 9, 2011

    When govt emplyoees are willing to devote 2yrs of service they should be given a chance as compared corrupt people who dont work but just get money.

  3. s. mukherjee - May 28, 2011

    Govt should think twice before taking decision of extending retirement age of the central govt. employee.First to consider the unemployment problem of the country.as well as the future of the young generation. More over after sixty there are few who can deliver with their full efficiency

  4. Ashok Sharma - May 31, 2011

    This practice may be stopped immediately. There is no need to increase age of retirement for government employees, teachers, its better if govt reduced the age of retirement and restrict upto 58 years. There are crores of jobless youths crying for job and due to bad policies of the government by increasing retirement age, they are jobless. its better if the formula like 33 years of service or 60 years of age, whichever is less adopted. If govt. dont have fund to pay the retirement employees, better they work on that how to solve such situation rather than increasing age.

  5. ram narain - May 31, 2011

    it will be a very worst decision if implemented as young qualified persons are waiting for the job and it will increase the unemployment. government should not take this decision in favour of youngistan of india

  6. G C SAHA - June 30, 2011

    It would be an worst decision because 2 years extension of service without thinking health aspect is nothing but a political game of UPA Govt.

  7. S K Dutta - July 3, 2011

    Will tis order of extention of age limit from 60 to 62 , will be applicable yo school teacher in Delhi Administration

  8. Anil Wakankar - July 3, 2011

    This will be a bad decision to increase the age of retirement by 2 years. The employees are waiting to get their retirement benefits and release the stress. Now a days technology is going change, the 60 year old people are not able to know it properly and goes under pressure.

  9. M. Manohar - July 4, 2011

    Extension of retirement age to 62 years is a welcome decision. Presently, there is shortage of manpower in every department. Therefore extension of superannuation age will help administration.

  10. Ramappa - July 5, 2011

    This is the best decession of govt.,Youngsters need not worry,because lakhs of vacant posts are there in central and state govt.They have to urge the govt. to fill the vacant posts,instead of opposing this

  11. Subir Kundu - July 6, 2011

    Enhancing the retirement age by another 02 years is absolutely a unwarranted and ridiculous idea to retain the oldies on the attendance roll for two more years. As is prevalent in our country, a vast majority of employees reaching the age of 60 years become functionally redundant, both physically and mentally due to various reasons as we all are well aware of. Now, keeping such employees alive on the attendance roll without any objectivity is baseless and simply a blockage of the post for two more years. Instead, giving an opportunity to the youngsters possessing academic and technical skill of the present generation, will certainly be a wise and decisive idea to enhance the standard and quality of Govt work. The problem of unemployment of educated youths in our country is the second most serious issue after corruption. Better not to aggravate this problem by taking a unwise decision.
    [Subir Kundu, UDC, Agra]

  12. Y.J.THAKER - July 9, 2011

    It is worst decision. Because,Father servicing, their children are waiting for job and later on they disqualified by upper age.

  13. D Varghese - July 10, 2011

    Increasing of Retirement age will only increase the financial burden to Govt. At present if a person retire in his place with tech knowledge of new person can appointed with one fourth of that old man salary and old man can also pay his pensionary benifit by one fourth. As such govt is benifited with half salary of the retired person. The calculation of govt that towards pension paid is increasing not correct. No old man having the present techinical and computer literacy.

  14. Srinivas - July 11, 2011

    Retirement age should never be increased, however to solve the problem economist must think better to manage the situation. Youths are to be encouraged as they are the pillars of the nation

  15. N.V.Ramana, Visakhapatnam - July 11, 2011

    The decision it self a blender mistake by UPA Govt. If implemented they will also face the same consequences earlier faced by the BJP Govt. in the year 1998 increasing the retirement age from 58 to 60 and lost the vote bank right from youth to senior citizens. The Govt should think twice before taking such blind decision of extending retirement age of the central govt. employee.First to consider the unemployment problem of the country.as well as the future of the young generation. More over after sixty there are few who can deliver with their full efficiency which the administration is presently experiencing in the work places giving burden on the lower category employees.

  16. man singh azad - April 3, 2012

    can one apply for a post lower than his current pay through proper chhanl/

  17. chinnan a - May 29, 2012

    it is better to reduce the retirement age to 55 for the benefit of the nation & jobless youths…..

  18. Kaviyya - November 3, 2012

    Will the state government follow this is a big question mark

  19. Venky - January 31, 2013

    While increasing the unemployment, in this situation this is the bad decision. If the retirement age is going to extended, then how can the youths like us get a government job.

  20. madhu - April 20, 2013

    govermnent ..its very good to increase the retirement age because their are lots of people seeking for money after their retiremen the have no pension plans and in this period of incriment they can atleast plan some …….government plz do increase the retirement age my father will b helped a lot..thanku

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