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Manpreet: Raising retirement is age foolish economics

Having opposed it tooth and nail as finance minister,People’s Party of Punjab (PPP) president Manpreet Singh Badal on Wednesday said raising retirement age of government employees from 58 years to 60 years to save money was “foolish economics”.

Written by Express News Service | Chandigarh |
Updated: April 9, 2014 3:13:04 pm

Having opposed it tooth and nail as finance

minister,People’s Party of Punjab (PPP) president Manpreet Singh Badal on Wednesday said raising retirement age of government employees from 58 years to 60 years to save money was “foolish economics”. Held in Barnala,a meeting of the PPP and its allies in the Sanjha Morcha decried the move of the Punjab government raising the retirement age of officials by two years. Claiming that rather than saving any money,it will further burden the state exchequer Manpreet said: “This move will also mean that the youth will have to wait for two more years before they can hope to get any government job.” In a statement,Manpreet added: “Anyone who understands finance knows an extension in retirement age only leads to a greater burden on state finances. People who are at their retirement age are alreadydraw high salary and two more years means they would get two more annual increments leading to higher salary bill for the state. This in turn implies that the pension bill will be higher since pension is

paid on the last salary drawn.”Further,if senior government

servants retire and are replaced by youth recruited at base salary levels,the end result is that the cost for the exchequer is actually lesser,he said,adding that three factors

— more increments,more pension expenditure and non replacement by younger staff — will end up costing the state much more than it hopes to save. “Increasing retirement age only implies postponing the payment of allowances,perks and pension by two years and does not save the government any money. Such foolish measures can only be invented

by those who have no understanding of either economy or finance. With little private jobs being created in Punjab due to

lack of investment,youth have to look to government jobs.

However,this move by the state has dampened their their

hopes,” he said.

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