No plan to raise retirement age of Central government employees to 62- Central Government

   The government on Friday made it “very clear” that there is no plan to raise retirement age of Central government employees to 62 years from the existing 60.

   “At present, there is no thinking in the government for increasing the retirement age. That I would like to make it very clear,” minister of state for personnel V Narayanasamy told reporters during a press conference.

   There are about 50 lakh central government employees in various departments across the country.

   Recent media reports had claimed that the ministry of personnel was working on a proposal to increase the age of service by two years as part of government’s plan to defer payouts in the form of pensions and other payments to check fiscal deficit.

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No hike in Retirement age of Central Government employees; PM's address from the ramparts of the Red Fort on the occasion of Independence Day 2013

   Prime Minister, Dr. Manmohan Singh, addressed the Nation from the ramparts of the Red Fort today on the occasion of Independence Day. Following is the English rendering of the Prime Minister’s address:

   “My dear fellow-citizens,

   Brothers, sisters and dear children,

   I greet you all on this Independence Day.        

   Today is certainly a day of joy for us. But on this celebration of independence we also feel pain in our hearts that our brothers and sisters in Uttarakhand had to face devastation about two months back. Our deepest sympathies are with all the families that suffered loss of life or property. I want to assure the people of Uttarakhand today that the whole country stands with them in this moment of crisis. Our government is working with all the resources at its command to rehabilitate those whose houses have been destroyed and rebuild damaged infrastructure.

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Central Govt. is at present not considering any move to raise the Retirement age to 62 years.

   There was no such proposal to increase the age for superannuation of central government employees to 62

   Central government employees are in for a disappointment as the Centre is at present not considering any move to raise the retirement age to 62 years.

   A senior official in the Ministry of Personnel, Public Grievances and Pensions, which acts as nodal department for personnel matters, said there was no such proposal to increase the age for superannuation of government employees.

   “There is no proposal to increase the retirement age to 62 from 60 years. The Ministry is not working on any such proposal,” the official said.

   Recent media reports claimed that the Ministry has written to Prime Minister’s Office for raising the retirement age and sought the Union Cabinet’s nod for the purpose.

   There are about 50 lakh central government employees working in various departments across the country.

   Officials in the Ministry said increasing retirement age requires a detailed consultation with all stake holders and discussion with the Finance Ministry.

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A News about Increasing Retirement Age to 62 for Central Government Employees.

   The Ministry of Personnel and Training has forwarded a proposal in this regard to the Prime Minister’s office (PMO) :

   The news on retirement age 62 for central government employees  is not ending . One of the news paper in Goa, Oheraldo published a news about increasing retirement age of central government employees. Already we  posted a news about this and many popular news sites like Business standard, The Financial Express have also published a news about the possibility of  increasing retirement age to 62. There is a proverb  ’Where there’s smoke there’s fire’ . Many say that there is some truth behind every rumor. So obviously this rumour about increasing  retirement age  62 for central government employees  also can become a truth. The news published in Oheraldo is given below

    ”A move is afoot to raise the retirement age of over five million central government employees from 60 to 62 years, citing the longer span of life enabling most to be fit to work, though ostensibly it may be keeping an eye on the Delhi Assembly elections due in November to influence over 80 per cent of them living in the capital.

   The Ministry of Personnel and Training has forwarded a proposal in this regard to the Prime Minister’s office (PMO) for inclusion in the agenda of the Cabinet for consideration, after securing consent of various ministries, sources said, claiming that it has an approval of the finance ministry. The decision will help immensely those on the verge of retirement to continue in service for two years.

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Retirement age 62 for central government employees a exclusive review.

Impact of raising retirement age from age 60 to 62

   It has been seen that one of the long time waging demand of raising the retirement age of govt. employees has finally caught afire

   Through the Medias and blogging sites re abound with news that the cabinet would announce news regarding the retirement age yet it has not been finalizes

   Even then it has been come to known that a favorable decision would be put forth regarding this issue due to the oncoming lok sabha and three state assembly elections. In India the retirement ages of most of the state government employees range from 58 to 60. This is low in comparison to the government employees of foreign nation.

   We shall see the effect of raising the retirement age in the following passage

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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.

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Increase retirement age of government employees to 62.

   On 21st March 2013, there was an unstarred question in Rajya Sabha, about whether there was a proposal to increase the retirement age of Central government employees. The relevant MOS answered there was no such proposal. That’s not quite true, because there is such a proposal floating around and it went to Cabinet sub-committee and an in principle decision to implement was taken by Department of Personnel and Training (DOPT). One should not mix up existence of a proposal with a decision about implementing it. Evidently, a decision has now been taken to increase the age from 60 to 62 years, the last time such an increase took place was in 1998, when there was an increase from 58 to 60 years. Whenever such a decision is taken, debates centre on the big picture. What are arguments for? First, life expectancies are increasing. There is a shortage of good people within government. Let’s tap this expertise. Second, in any case there are extensions in “exceptional circumstances”. But that’s arbitrary and can be shot down by the Appointments Committee of Cabinet (ACC). Why not formalize the system by allowing extensions to everyone? The trouble with this argument is that there will be no finality about 62 either and there will be “exceptional circumstances” beyond 62.

   Third, there should be parity. Professors now retire at 65. High Court judges retire at 62, Supreme Court judges retire at 65. The counter-arguments of the big picture are also obvious. India is a young country, young need employment opportunities. Promotional avenues of existing civil servants get blocked. Often, in the private sector, people retire at 60 and there are extensions, with the qualification that extensions are at consolidated monthly emoluments, with no perks. An increase in retirement age occurs with all perks. Therefore, there are significant fiscal costs. While these big picture arguments and counter-arguments are important, my problem is that such decisions aren’t taken because of logical coherence.

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No proposal to Increase the age of retirement from 60 to 65: Govt. replied in Parliament.

   In reply of question "whether the Government proposes to increase the age of retirement of Government employees from 60 to 65?" asked by Shri Mahabal Mishra in last session of Lok Sabha, the Minister of Personnel, Public Grievances and Pensions Shri. V. Narayanasamy has replied that there is no such proposal at present.

GOVERNMENT OF INDIA
MINISTRY OF PERSONNEL,PUBLIC GRIEVANCES AND PENSIONS
LOK SABHA

UNSTARRED QUESTION NO 1975
ANSWERED ON 05.12.2012

AGE OF RETIREMENT

   1975 . Shri MAHABAL MISHRA

   Will the Minister of PERSONNEL,PUBLIC GRIEVANCES AND PENSIONS be pleased to state:-

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Is Central Government Employees retirement age raising?

   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.

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