Retirement age lowering real facts

Comrades,

                  There are lot of discussions in whatsApp groups about the premature retirement of Central Government Employees the idea is to retire employees who have completed 33 years of service or on reaching 60 years of age, whichever is earlier. At present, the retirement age in most of the services is 60 years, though it is 65 for professors in all Central universities as also for Central government doctors. , such messages are spread as suggested by the Department of Personnel and Training (DoPT), the proposal is currently with the Department of Expenditure. Meanwhile, in order to streamline manpower planning and policies, the government has asked all the ministries to furnish a complete list of cadre-wise and grade-wise posts, total strength and vacancies in various departments by September 30. The messages state that the new rules of retirement age will be implemented from the next financial year after the approval of the Finance Ministry.

The following are the facts about this case.

1) Economic Survey for 2018-19  tabled in Parliament by Hon'ble  Finance Minister Nirmala Sitharamanji  on 5th July 2019  which says  The survey pointed out that this will also help plan in advance for pensions and other retirement provisions. Given that life expectancy for both males and females in India is likely to continue rising, increasing the retirement age for both men and women going forward could be considered in line with the experience of other countries, it added.  Due to ageing population and increasing pressure on pension funding, many countries have begun raising the pensionable retirement age. Curiously, Economic Survey 2018-19 had made a strong case for increasing the retirement age in the wake of the rising life expectancy rate in India.

2) The Economic Survey has suggested that a higher retirement a would be crucial for the viability of the pension system. The present economic condition of the Government is not that good to observe higher pension liability .

3) Whenever the Center constitutes a Pay Commission, there is heightened anticipation that the retirement age will be reviewed. With the next pay revision due in 2026, the signalling may have begun now .

4) Economic Survey itself pointing to the need to create 55-60 lakh jobs annually over the next two decades. The total number of sanctioned posts among all the grades was over 38 lakh as on March 1, 2018. Of them, 33.47 lakh posts belong to Grade C. About 31.18 lakh of the total of 38 lakh posts are occupied. At present about 6 lakhs Central Government jobs are to be filled up, the Central Government can fill up these jobs on priority basis.  If the retirement age is lowered by any formula then about 6 lakhs people will be retiring in 2020, then 12 lakhs vacancies will be altogether the running of the Government machinery will be quite difficult. This will impact the Government objects and goals .

5) By the 2021 lot number of the Central Government employees are due for retirement, here also lot of vacuum is created in Central Government as filling up of the Government Jobs is at slow pace. The actual work load is more than the employees, the Government should run its machinery and implement it program and policies for which adequate manpower is vitally required.     

6) The Government has to pay out huge amount as pension benefits to these 6 lakhs employees on an average 25 lakhs amount is spent on each employee as pension benefit , financially which is likely to be about Rs 20,000 crores on the Government budget.

7) The BSNL management had suggested to Central Government reducing the retirement age from 60 years to 58 years, so far the Finance Ministry has not cleared it due to financial constraints.   

8) The retirement age of Central government officials were last increased from 58 years to 60 years in 1998. Many state governments have raised the retirement age from 60 to 62 years. Once a benefit is given to an employee, it is very difficult to withdraw it. It is subjected to judicial intervention.  The lowering of retirement age is not easy decision , the central or the state Government will take so easily. It will think in all angles before any such decision  is taken. 

Hence , to conclude  it is just a proposals and it is very difficult to implement it due to various factors such as losing an experienced employee who can handle the work , lot of Central Government jobs are vacant which are to be filled up , lot of financial issues are involved apart from managing its resources.     

                                                                                                                                    Comradely yours

COC Karnataka