Government contemplating on increasing the Retirement age of Central Govt. Employees from 60 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.
In the last cabinet meeting there was hype from the media and blogging community that such a decision will be announced by the Government. But later it came to know that this item was not there in the agenda of the last cabinet. But everyone hope that such a move is on the anvil.
Pros and Cons if such a decision is implemented
Advantages : (from employees side)
1. If the 7th pay commission is implemented in the year 2016, the central government employees those who are retiring from service in the year of 2014 to 2016 would be benefitted by extension of their service further two more years.
2. Economically the employees would be in better position due to this rise of the age of superannuation.
3. The pensionary benefits would also increase alongside if there is any shortage of service to get full pension and gratuity
4. More over there is a chance of getting an additional MACP by the central govt employees if there is any short fall in the service by two years to get 2nd or 3rd MACP
1. Promotions will be affected due to no retirement up to two years.
2. Unemployment problem will be continued due to the increase in retirement age.
3. The age criterion to get government job to be relaxed by two more years, otherwise those who are at the verge of crossing the age limit will be affected seriously.
4. Efficiency will be affected if the retirement age of unhealthy employees increased.
5. Job prospects of youth will be affected.
View of Currentaffairs4examz team: It should be the youth who should be benefited. There is no urgent need to increase the retirement age. An employee who retires at the age of 60 will certainly be economically sound. At a time when un-employment keeps increasing, the Govt. should do away from such a move.