Raising retirement to 62

Raising retirement to 62

Prime Minister Manmohan Singh is keen on extending the retirement age of civil servants to 62, one of his aides told this columnist in Delhi recently. He had apparently been keen to do so earlier this year, but such a change was thought politically risky at a time when the Congress party was using Rahul Gandhi’s youth as its electoral strategy (how do you convince voters that the party is going to harness the energy of the youth if you propose to keep all the old babus for another two years?). It may seem unreal now, but back then many in government feared that the Congress might lose power (even national security advisor M K Narayanan apparently threw a farewell party!), so the PM’s plan was shelved. It is being revived again, with the PM himself taking great interest.

This proposal has two justifications. First and foremost is fiscal. As had happened when the retirement age was raised from 58 to 60 in 1998, the expenditure on pensions would be curbed. In this year’s budget, finance minister Pranab Mukherjee earmarked non-Plan expenditure for pensions at Rs 25,085.49 crore. That is a growth of almost 40 per cent (39.4 per cent). It is a major contributor to the total spending that was announced by Pranab, a little over Rs 10 trillion, a hike of around 36 per cent from last year.Of course, coming at the time of a global economic slowdown this massive expenditure is possibly a good risk to take; but the prime minister is obviously looking for ways to keep costs from running away.

Of course, worse than the central finances are those of many of the States; their governments are far more reckless than the Centre’s. In the decade after New Delhi raised the age of superannuation to 60, the States slowly but surely followed suit. The States would likely follow the Centre’s lead again and that would help them manage their fiscal problems.

The other reason the PM wants to push retirement back another two years is that he wants to make tap the valuable human resource that bureaucrats represent. For one thing, life expectancy in India has gone up. According to UNICEF, in 2007 it was 64 years, and this is a figure that the average bureaucrat would have pulled upwards. Thus, when a civil servant retires at 60, she or he is still at their mental peak, and each acts as an institutional storehouse of government policy and programme implementation. Retaining them for another two years would possibly enrich functioning of the government. At the very least, it would keep some of the hypocrites off the boob tube — it’s very bizarre that the same bureaucrats who set government policy for 30 years or so, start abusing the government at the nearest TV station studio the moment they find themselves jobless. (Maybe it’s their pique at not getting a post-retirement sinecure).

The PM is not the first person to have such a brainwave. Almost a year ago, the University Grants Commission appointed a committee under G K Chadha to study pay revision, and he made a suggestion that teachers’ retirement age be raised to 65. This is timely advice considering that India is currently set to expand education in a major way under the stewardship of the dynamic Kapil Sibal. It is not just a matter of filling the ranks of teachers, but imparting quality teaching to India’s children.

If the PM wants to extend the retirement age then he would only be following a global trend. The retirement age in the US is 65; in Japan it is 60 and the government is gradually raising it to 65 by 2013, but people anyway continue working till 65 on reduced wages. By 2033, Austria’s retirement age will be 65. In Denmark it will be 67 years by 2027. Hungary plans to make it 69 years by 2050. Israel is already raising it to 67 years for men. All these countries and many others are increasing the retirement age because of an increasingly alarming problem — their ageing populations. By 2020, a quarter of Japan’s population will be 65 and over. Life expectancy in the US is about 77, and by 2050 is expected to go up to 83. Japan’s is already 82.4 years. Indeed, the life expectancy in some of the advanced countries, according to 2009 OECD data, are: France 80.9 years, Canada 80.4 years, Sweden 80.8 years, Italy 80.9 years and Spain 81.1 years. You would have to think that as India gets wealthier — which it undoubtedly is — our population’s life expectancy will similarly increase.

Imagine a person retiring at 60, but living till at least 80 (if not more), perhaps physically weakened as she or he passes 75, but still mentally at the top of his or her game. What do they do with such a long retirement? And besides the fact that the increase in life expectancy leaves retirees with too much time on their hands and their skills unutilised, it also places a great burden on the working population, which has to finance the social security and health benefits that the elderly need. In the West it costs much more to maintain an elderly person than it does to raise a child; and health care costs in the rich world are projected to be those countries’ biggest finance headache (much more than the costs of the stimulus to end the current economic crisis). Thus it is not surprising that there are an increasing number of voices in the West and Japan who are talking of increasing the retirement age to 75. Doing so would engage the older citizens, contribute to the state exchequer in terms of taxes from older workers, and reduce the social security burden on the young. It is a surprisingly obvious solution.

With the PM politically on the defensive after the all-round criticism of his joint statement with his Pakistani counterpart at Sharm-el-Sheikh, it is unclear when he may undertake the change in retirement age, though he is said to be very enthusiastic about it. Sharm-el-Sheikh will pass however; party boss Sonia Gandhi can manage the naysayers in the Congress, and the BJP is still shell-shocked from its electoral defeat to do serious damage to the government. And even within the BJP it is thought that currently the coming assembly elections in Maharashtra favour the Congress. Manmohan Singh will soon enough have the political wind at his back to make this proposal. Good thing, for it is an eminently sensible one.

Source: Express buzz

Comments

Anonymous said…
This is surprising that old persons will get more chance to stay in govt service and youth will remain unemployed.Make a young person as the leader of country and see wheter he is better or not.Don't increase the retirement age.
Anonymous said…
if implemented it would be most unfortunate. Presently babus tend to while away their last two years of service in preparation for retirement by working less, not taking any new responsibility, gossiping about post retired life and disturbing others etc. making retirement at 62 will only add another 2 years to the unproductive years of a babus service life.
Anonymous said…
Hope some good sense prevails and the idea gets dropped. Its not a good idea to reward retarded minds. 60 is good enough !
it is very much necessary so that experienced persons can serve nation for more period. govt. may take decission as soon as possibleon the policy
Anonymous said…
this is a good descision wen there is a huge need for d youths to b in the research n development sectors it is a good idea that the oldies remain back n judge the steps.......unemployment can b removed by making more job provisions rather then decrementing the age f retirement n lag behind the developed countries.
Anonymous said…
when the youth are remaining jobless and those in the jobs are stagnating without any promotions for more than 22years, and the babus doesnt take any decisions to motivate those presently working for the government, acting as if they were deaf and dumb, it will be a great disaster if the retirement age is raised from 60 62.
Anonymous said…
It would be most unfortunate if retirement age is increased to 62 yrs.It would serve no purpose and no one except the few old babus to take more salary home. Recruit new young man in their place to move the nation forward not backward. The decision,if taken, would increase tremendous frustation among the youth and the crime rate may increase. PLEASE DONT INCREASE RETIREMENT AGE.
Anonymous said…
60 yrs is good enough
Anonymous said…
It is not only pathetic, it is awful, unfortunate. It would amount to a crime against the youth of this country. Some body ought to have courage to file a PIL against government for gross misuse of office and power and breach of trust of youth of this country.
Such short sighted approach cannot be expected from a learned person, least of all from a person like Dr. Manmohan Singh.
Indian electorate punished CPM for their sinister design and now if congress which enjoys almost absolute majority acts in dictatororial manner, it would also meet the same fate.
As long as there is no robust mechanism to weed out dead wood such idea of enhancing retirement age to 62 or above is suicidal even if it is to delay the inevitable, ie: the cash flow.
Anon said…
Only the fit and honest ones should be given extension upto 62.
Dinesh said…
Not necessry to increase the date of retirement 62 years, it will make moy un-employment in the country. Please not increase it.
Dinesh
Anonymous said…
THE GOVERNMENT SHOULD REDUCE THE RETIREMENT AGE FROM 60 TO 58 YEARS AND MAKE WAYS FOR THE YOUTHS TO SHOULDER THE RESPONSIBLITIES OF GOVERNMENT DUTIES AND THEN THE COUNTRY CAN PROSPER.ALSO REDUCING THE AGE WILL MAKE PROMOTION OF THE EXISTING EMPLOYEES SOONER AND THEY WILL WORK WITH NEW ENTHUSIASM
ashok anand said…
it is good if really govt. takes this measure and increases the retirement time it will help many people becoz 60 is not an age for retirement. still there is capability for for the people to work
Anonymous said…
i think its a wonderful idea govt should go for it it ids foer the betterment of the society
Anonymous said…
the rich experience of capable persons will be available to our govt and also helps financial burden.so make it.
PV Sinha said…
Please donot do that by increasing the retirement age from 60 to 62. This is rediculous. What is the fate of our younger generation will you leave them jobless in Government sector. Please donot increase the retirment age.
Anonymous said…
Absolutely ridiculous. If retirement age is increased, it is nothing but encouraging the youngsters not to shoulder the responsibilities, get ready to work in the same capacities for another two years, slowly they will lose.... Govt has to increase the retirement age for another two years.....so on, coz' it can't lose their loyal, hard working, experienced, still capable employees........ God save India!

Respected Prime Minister Sir, all can not be like Manmohan Singh, the dearest for every bureaucrat in this country.

How many bureaucrats could become Prime Ministers of India?

Would Cong[I] came into power without efforts Rahul Gandhi this time?

Pleaazzzzz. Enough is enough. Give rest for the Sixties and make way for the youngsters. Government can think this way too.... a fresher need be paid lesser than a retiree.....
Unknown said…
Retirement age should be 55yrs for all Cental/State Govt emploees.
Anonymous said…
Dear Manmohan Sing Ji,

Raising the retirement age is a unwanted matter in Govt. sector. If an Indian Govt is headed by a youth this foolishness will not happen. It is very shameful for India and Indian Govt. Best way to sustain the old people in large number is recruit the people between the age 55 to 75 and make a old and ancient India.
Anonymous said…
The idea to raise retirement age looks sensible.
Anonymous said…
Retirement age should not be increased to 62 years.there are many enemployed youth in the country.they should get an chance to get employment.Increase in retirment age will also block the promotion prospect of the employees who are not getting a single promotion even after 25 years of service and no acp scheme will remove the frostrstion due to late promotion.
Anonymous said…
AGE OF RETIRMENT SHOULD NOT BE MORE THAN 55 YEARS OR 33 YEARS OF SERVICE(.) WHAT CAN GOVERNMENT OFFER BE THE LAST PAY DRAWAN AS PENSION(.) ALSO GRANT LTC AND MEDICAL FACILITY TO RETIRING EMPLOYEES SO THAT RETIRING EMPLOYEE MAY ALSO NOT FEEL A VICTIM OF HARASSMENT AN JOB OPPORTUNITY FOR YOUTH BE THERE
Anonymous said…
Yes , this is very good idea but government must do this Red age 62 immdly ( with in this year )
Anonymous said…
65 is gud when can we expect this changes onground?
Anonymous said…
65years is good idea
Anonymous said…
62 years - it is very much necessary so that experienced persons can serve nation for more period. govt. may take decission as soon as possibleon the policy
Anonymous said…
62 years is very much necessary

Whe can i expect this from CG
Anonymous said…
Retirement age should be increased to 62 years, Decession must take with in 2009
Anonymous said…
Yes we believe PM ji, he can understand seniors expectations, we are having 100% hope that his govt. will change the retd. age as 62 asap.
dr ashok kumar agrawal said…
sir,
i think govt has grown up mentally. age should be 65 and not 62.it will save money for govt and will have no impact on elections as govt is elected recently. by the time of next election impact of raising the age will disappear . at the time of recession it is must to raise age limit to save the country.
dr ashok kumar agrawal
jaipur
Unknown said…
If the retirement age is stepped up 62, we may have to here this type of proposals/ decisions from them also..
better avoid such situations..
Anonymous said…
Retirement age should be rduced to 55 years.
Anonymous said…
hi,
NO this increase of retirement age will introduce stagnation at current levels.
We should vehemently oppose this idea.
Anonymous said…
The rational for raising the retirement age to 62 seems untenable. Do officials who are in the age range of 50-55 not have sufficient experience in Government that the knowledge and experience of the 60 year olds have to be depended upon? Secondly the situation in India cannot be compared with the Western countries that have a higher retirement age. In the West the population growth is negative or stagnant. In India there is no dearth of brilliant young people who can bring fresh ideas to bear on public administration. Why should they not be given an opportunity?
Anonymous said…
Ho'ble Prime Minister sir,
This is realy sad news for youth of India. If we compare to foreigh country the decison looks nice but in India where the population is more than 120 crores and unemployement is a big problem, the decision of raising retirement age is not acceptable by the people of India. The youth must be given chance to serve.
C.S. SINGH
Anonymous said…
SIR,

IF IT IS THOUGHT THAT A PERSON AT 60 YEARS IS STILL ON HIS MENTAL PEAK, BUT WHAT ABOUT HIS PHYSICAL FITNESS? A HEALTHY MIND LIVES IN A HEALTHY BODY.

IF YOUR OPINION IS BASED ON UGC'S SUGGESTION TO INCREASE THE RETIREMENT AGE OF 65 YEARS, THEN FOLLOW THE PATTERN AS PER USA, WHERE THERE IS NO RETIREMENT OF WORKING PROFESSORS IN ANY UNIVERSITY. AFTER 60 YEARS, HE HAS TO SOUGHT EXTENSION FOR EACH YEAR ON BASIS OF HIS HEALTH FITNESS AND ABOVE ALL APPRAISALS FROM HIS STUDENTS.
S Dutta said…
Supporting neha, I too wish that only the fit, honest, productive and deserving officials be given extension up to 65 or more until they are capable to do their job with same enthusiasm as various other professionals, on the other hand, rules for the rest should strictly be just reverse.
SANDEEP said…
It is a good move. Gov. shd do it early.But it shd think about the unemployed youth. It shd simulteneously raised the upper age for recruitment in gov jobs to 30 years from 25 years presently.
Chandra said…
From- cnapati
It would be the pitiest move by govt. The old employees( Officers)are engaged in enjoying balance HPL, LTC etc at the time of urgent works, such as election, important meetings. They try to be in easy going life with previous experience.They want to pass the time till retirement.They are not conversant with new technology. Instead 3-4 unemployed can be engaged having computor basic nowledge. Remove old person .
Anonymous said…
only fit and honest should be allowed to work till 62. otherwise 60 is o key Padmakar H.K.
Anonymous said…
Retirement age should be increased to 62 as the life expectancy has increased
Umasankar said…
There were high expectations of the Central Govt. employees regarding enhancement of the retirement age to at least 62 years before the VIth Pay Commission announced its recommendations. Unfortunately it was not the case.
This is the most appropriate time for the Govt. to announce its decision to enhance the retirement age to 62 years otherwise the demand may come from opposition to score a point in view of the present fiscal situation.
After all what is the point in paying hefty pension to a healthy mind [which 99.99% of the employees do have] sitting idle at the age of 60?
Unknown said…
It's not a bad idea to raise the retirement age up to 62 or 65 years, but the extension should only be given to those employees who are medically, mentally fit and Physically active.
if implemented it would be little unfortunate. It is better to consider uniform retirement date 31st December so that pensioner will get their benefit in right time as well as govt will get one year in hand to solve the present economic crises. The D.A & Increment are fixed in uniform, similar retirement date is fixed 31st December, all the retirement papers will be cleared before their retirment i.e. 31st December and they get their first pension in hand in right time. Govt study the matter and consider please.
DPArjunahi said…
It will be better to serve the nation by the most experienced persons by raising retirement age from 60 to 62 as desired by our hon'ble Prime Minister of India.
amarangrish said…
As the govt. has introduced uniform date of increment for all the centre employee, the date of retirement should also be uniform, better 31st July, because those retiring before 1st July will loose one increment.
sushila said…
this is a step which the govt should take much early when recession started...
none of the youth wants to work, they knew that they will get a house, a travelling allowance , and free medical , for this they sang a song of unemployment in youth,

we just get another new refreshing mind but not the productive mind for nxt 60 yrs...

if the young one are so talented that they can move society , govt , sector so upward. why dont they join some other sector..
there are many other field where they can use there productive brains in private seator,, just because that they have to work hard for private seactor they dont want to join private...

as the life expectancy increased ...

govt should increase age to 65..
so that they will remain healthy and deciplined as well...

this need to take as early as possible
MIntu Jha said…
sir,
i think govt has grown up mentally. age should be 65 and not 62.it will save money for govt and will have no impact on elections as govt is elected recently. by the time of next election impact of raising the age will disappear . at the time of recession it is must to raise age limit p.k.jha Bhubneswar
It is not wise to increase the retirement age to 62 yrs, as in a country of 55 crores young people are striving hard for get their livelihood. Our young people are committing suicides and other crimes in frustration for want of job.
HB Khamari,AIR, Cuttack
Anonymous said…
nobody other than from Govt service will suport to the proposal for raising retirement age to 62 yrs. actually it should be 55 yrs so that there could be some chances for younger generation to get Govt job. at any cost, retirement age should not be raised.
ravindran nair said…
raising of retirement age to 62 is nonsense. even the reappointment of pensioners who had served more than 30 years is also nonsense. fresh appointees will work sincerely at least for 10 years . now there is no discipline,no monitoring in administration by the offrs where there is sensitive. everybody is at there own interest.
Unknown said…
S.P.Singh
While Mr Rahul Gandhi is looking towards the young of the indthis country and seeking their support to runn the government/politics of this country. It will bedly effect the economy at all. Also raised the unemployment of this country. No doubt the senior persons got lot of experience and efficiency but they cannot work quickly as I experienced.
Anonymous said…
Retirement age should be increased to 65 years. People are fit way past their 70s, so why not tap their energies for the betterment of the country and save on the pension bills too.
Unknown said…
Can anybody say, Mr Ratan Tata, Mr rahul Bajaj, Dr Manmohan Sing, Smt Sonia Gandhi, Mr Pranab Mukherjee, Mr Chidambaram Mr LK Advani and Mr Som nath Chatterjee are not dynamic in their working life? So, why so much hue and cry. The proposal of enhancement of retirement age has come from such a person who is respected man and an world fame economist.We can trust him.
Anonymous said…
It sholud be 65 instead of 62 years.It is right decesion of central govt to enhance the age from 60 to 62 to utilise experienced manpower in developing country.India is to be developed at the earliest.Central govt has to save it finance for paying pension.
Anonymous said…
You can see only age between 60 to 85,that 25 years man can impliment his past experience and will do well for country.In this age he can take appropriate decesion in time.This 25 years is actual assets of his life.We have use and learn lot of things from him.In this time don't allow him to go outside of organisation.
Anonymous said…
You can see our all top rank poltical leaders age is more than 62,U can see our Hon'ble President,Minister etc.They have lot of experiences and they will manage to country in appropriate manner.They know what to do,when to do,How to do etc
Anonymous said…
It is very much essencial to enhance retairement age from 60 to 65 without any break.
Anonymous said…
Retirement age should not be enhanced at any cost as in Indian unemployment is increasing day by day. Already employed babus have the qualification upto Matric or BA. The retirement age should be reduced to 55 years so that young persons may get the employment after completing their Degrees and can be saved from frustration.
Anonymous said…
Item No. 5(vi) discussed by the Committee has significant impact. Many representations regarding advancement of increment to 01.1.2006 for those earning the annual increment between February and June had fallen on deaf years as the PAOs won't listen to logic. Now, it seems the Government has understood the simple logic and willing to grant the increment from 01.1.2006. But, we have to wait until the orders come. Kudos to the staff side.
Anonymous said…
what about promotions in central Govt departments like Central Excise Mumbai and other places the promotions are very hard to come. even after working in same Post for last 22 years there is no hope for promotion. If the retirement age is increased the officers will have retire in the same post to which they have joined. It is highly demoralising for any cadre. The Govt should ensure at least one promotion after ist 15 years of service. By the time the Govt will think of something and take steps many officers would have already retired.
Anonymous said…
IF the retirement age is increased to 62 it will certainly be beneficial for country as we will save lot of money. I think government should seriously think on increasing the retirement age for employees and implement it.
Unknown said…
retirement age should be raised to 62.as life expectancy of man has incresed and a parent has to shoulder more responsibility than earliar time. inchhitisgarh state govt doctores retd age has augmented to 65 yrs.teachers are also have 62 yrs then why dont for central govt.
BY-K.R.CHAKRABORTY.DOORDARSHAN
AMBIKAPUR
Anonymous said…
The extension of retirement age can be considered in the areas where there is a real scarcity of talent and qualified people to take over Like professors in medical and engineering institutes, Scientists of national centres etc.
Anonymous said…
As economist i want to say that increze it as soon as possible to 62 it will be prove great benifical to gov..........do it as soon as possible...
Anonymous said…
In my opinion the retirement is has to be 62 or the 33 years of service which is earlier.
In most of the government department there is no promotion because of age of retirement. In my case I am eligible for the promotion as FAO after completing 8 years of service but I have already completed 10 years. Moreover another four five year I am not expecting the promotion. so retirement age has to be 62 or the 33 years of service which is earlier.
S.K. Dogra
Anonymous said…
Service period should extend till 62 years, experience is best than fresher person.
Rizvi said…
No doubt the problem of employment is a serious matter but we must not forget that while comparing to the population of India say 120 Crores, the number of Central Govt. Employees is more or less 60 Lacs Ratio of 1:200, will not have considerable impact in solving the problem of unemployment. Secondly, we do not make any hue and cry in Politics; the policy makers, where there is no age limit,So there is nothing wrong in increasing age limit upto 62-65 Years like Judiciary, Teachers, Scientist etc. subject to physical fitness/mental.
Anonymous said…
it is necessary to increase the retirement age to 65 in the interest of the country's economic conditions and save the talented and capable seniors and experienced people in the overall development the country. Intermediate decision should be taken.
Anonymous said…
The proposal(rumer) is nothing but a day dream of certian selfish category of govt servants. They never think about the millions of our population striving for one meal per day. Inequality in distribution of income is already very high in India. 70% of population is meeting the two ends of a day with a megre 20 rupees. Increasing frustration among the society is oe of the reasons for all criminality, naxalisum and even terrorism. Rise in retirement age was one of the reason for the defeat of BJP in 2004. NREGA itself is the outcome of unrest among the unemployed youth. Rising of retirement age paraticularly of physical work force(Gr-D, C&B) is not advisable in any case.
Achal said…
To Our PM
sir
I 'm well sattaled youth but I'm supporting the retirment plan of 62 to 65 bcz when any person is going to age of retirement his or her child is is struggling to stand on his or her feet,for just moral support of this youth this Idea is nice one . Behalf of all the youth struggler I want to say If it not possible then all plotician should also have an age limite of 60 years...thx
Anonymous said…
We should protest the proposed increase of retirement age.
Anonymous said…
Raising of age 62 years is not to good for healthy function.
For morethan 36 years serviced peoples in centralgoverntment they are expecting for retirement.If increased the age they will get heart attack. For those people
govt to give some choice in the way of money to get his retirement
as he desidred
Anonymous said…
S.S. Hussain
I too am a State Government Employee and put in a service of above 30 years. Inspite, I feel that the enhancement of retirement age will be fruitful to none, except the concerned Employee. Moreover, in the present trend of corruption engaging youths in public service the currupt practices could be curbed, since the youths though not possess experience but they possess enthusiasm and sense of honesty and integrity. So, they will compensate the loss likely to be caused on account of retirement of experienced personnels. Anyway, such experienced ones are bound to retire on one or the other day, consequently the Government is sure to lose its experienced servants. Thus, it will be wise to employ youths in its sevices and allow them to gain the experience at their early ages rather than continuing the experienced for another two years.
Anonymous said…
6th CPC recommended for uniform retirement date 31st December every year, govt may fast implements this recommendation by this month only, as it will certainly smoothing the pension payments of the employees,at one time critaria on yearly basis.
TELANGANA MADHU said…
IT IS MOST UNFORTUNATE. THERE R MANY YOUNG ENERGETIC HIGHLY QUALIFIED MANUAL FORCE IS READILY AVAILABLE IN COUNTRY. HENCE STOP IMMEDIATELY THE PROPOSALS OF INCREASING THE RETIREMENT AGE OF GOVT. EMPLOYEES. IT IS NECESSARY TO MAKE UNIFORM RULE OF RETIREMENT AGE OF ALL STATE, CENTRAL, PSUs IN OUR COUNTRY ie 60 YEARS.
Anonymous said…
Only the honest and medically fit persons should be retained in service with reduced emoluments after the age of 60.
Anonymous said…
wonderful idea govt should go for it.
many seniors have vast experience which will be helpful in betterment of society. just implement it as soon as possible

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