Law Ministry OKs reducing retirement age from 60 to 58

The Law Ministry has upheld the Personnel Department’s proposal to lower the retirement age of Central government employees to 58 years...

The Law Ministry has upheld the Personnel Department’s proposal to lower the retirement age of Central government employees to 58 years, the stipulated age existing before the Vajpayee government increased it to 60 in 1998.

The proposal will now be vetted by the Expenditure Department in the Finance Ministry.

In doing so, the Law Ministry has endorsed a decision taken by the Vajpayee government in April to restore the retirement age to 58 in line with the Expenditure Reforms Commission’s recommendation that the government cut its spending on salaries.

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The Law Ministry has said that instead of a three- months notice before the reduction in age is effected, the cut-off date be announced six months in advance to meet the stipulation of fixing pension six months ahead of an employee’s retirement.

Another change suggested by the Law Ministry is that the retirement age be fixed at 58 years. The Personnel Department had suggested that an employee be retired either after 33 years of service or at the age of 58, whichever is earlier.

Sources said the proposal involves an immediate outgo of Rs 6,500 crore as superannuation benefits and pension payments. Plus an expense in the form of house rent allowance for one year forthose who get axed because of the change.

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