Centre to consider raising retirement age to 62 years
New Delhi: The Narendra Modi-led central government would consider raising the age of retirement of its employees from the current 60 years to 62, top sources of the ministry of personnel, public grievances and pensions has said.
“The government will consider the matter,” the sources told The Sen Times recently when asked whether the issue was under consideration of the government, in view of the Madhya Pradesh BJP government recently increasing the age of retirement to 62 years from 60 for its employees.
Chhattisgarh BJP government already increased the age of retirement to 62 years from 60 for its employees in 2013.
“Centre will consider such issues in its own manner and will not follow what BJP-governed states are doing on the matter,” the sources said.
The announcement by Chhattisgarh and Madhya Pradesh had led to speculation that Centre too could make an announcement in this regard as already retirement age is different for professors in all central universities and central government doctors.
For central government doctors and professors in central universities, the retirement age is 65 years.
The proposal to increase the retirement age from 60 to 62 years will come to the Cabinet after the government making announcement in the Prime Minister Modi’s Independence Day address on August 15, 2018, his last before general elections in 2019, the sources confirmed.
The move is meant to ease the financial burden on the government in terms of its pension liabilities, sources said.
However, Minister of State for Personnel, Public Grievances and Pensions Jitendra Singh had ruled out an increase in the retirement age to a question in Parliament on March 21, this year. An official in the ministry, when asked, refused to speak about it.
Jawaharlal Nehru was the first prime minister to have increased the age of superannuation from 55 to 58 following the 1962 war with China. Atal Bihari Vajpayee raised it from 58 to 60 years in 1998. The Manmohan Singh government had reportedly considered enhancing the retirement age further to 62 just before the general elections in 2014, but dropped the move.
The World Economic Forum said that pension ages must rise as lifespans increase.
The retirement age should rise to at least 70 in some countries by 2050 as life expectancy rises above 100, according to the Forum new report.
The Forum said that employees should continue working until 70 in nations such as Australia, Canada, China, India, Japan, Netherlands, United Kingdom and United States.
While aging populations and longer lifespans have forced most countries to raise retirement ages but in India, the retirement comes quite early at 60, when central government employees are required to hang up their boots.