Central govt employees’ retirement age to be extended by 2 years to 62 - Financial Express
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: www.financialexpress.com
[http://www.financialexpress.com/news/central-govt-employees-retirement-age-to-be-extended-by-2-years-to-62/784342]
Comments
Its a time to utilized our youth in the Interest of Nation
D K Bhatt
Dr K K Yadav
Dr K K Yadav-BHU
If the announcement comes this month (June 2013), it will benefit maximum employees. The official date of birth for many employees is 1st July, though their actual DOB is different. This was done to avoid one academic year loss at entry to 1st standard of school admission.
When DOB is 01-07, they retire on 30-06, and if DOB is 2nd July, they retire in July. Losing one increment due in July, even after working for 365 days by superannuating in June is a sad thing. Justice can be done to some extent, if the 62 years order comes this month for those retiring in June.
I also feel, retirement can be made uniformly in July, irrespective of the month born and age can be 62. For example born any time in 1954, retirement can be July 2016 and born during June to December 1953, retirement can be July 2015 etc.
Nothing can be done probably for those who retired on or before 31-05-2013.
State govt and pvt organsation retirement age is 58 than why it should be 62 for central govt. employees. should india's youth apply for out of country?
The retirement age of Central Government should be 55.... Politician mind it.
With thanks from a Central Govt Employee.
Vijay
ablished procedure. Raising age will reduce fiscal deficit by saving on lump sum payments on pension.
KDYadav
don't increase the retirement age and spoil youths.
What experience, I am an M.Tech Engineer in my salary two young blood can be accommodated. After 50 years most of the people passe time only.
We need working and energetic hands. Brilliant and manipulator gets extension themselves, hence no need to increase retirement age.
Vipul Luckhnavi
web channel : "vipkavi"
No doubt youth have more energy to work for different fields but senior employees or 60 + have skills, experience and also efficiency to do their jobs in an organised way and they can also train the new and young employees. Also todays senior citizens are more health conscious and have more efficiency and energy . So health factor cant be taken as a comparison between the youth and 60+ employees.Hence its a right decision of the government to extend 2 years.