Retirement age likely to be lowered to 58

The earlier NDA government had also considered a similar proposal, a senior government official said. But the proposal did not see the light of day because it would have meant a drain of Rs 1,600 crore. 8216;8216;Though the government saves on the salary bill, a substantial part of its total administrative expenditure comprises one-time retirement benefits,8217;8217; he added.

Insiders say the proposal is now being revived by the UPA government to pacify its Left allies.