Superannuation age of Central Government Employees – Rumours & Real Facts

Rumours were floating in social media that the govt has given clearance for reducing superannuation age

Sources tell that the rumours circulating in the social media about Department of Personnel and Training (DoPT) having given clearance to a proposal for reducing the superannuation age of Central employees with effect from April 2020 are baseless. It has been clarified that there is no such proposal.

NCJCM Secretary Shri. Shiva Gopal Mishra also released the official letter about these false news, NCJCM secretary clearly pointed out that “this has not to be given any cognizance since it is not possible without prior consultation with the JCM(Staff Side), being an important matter of the service condition, affecting the Central Government Employees”

Karnataka Confederation union also released the real facts for lowering the retirement age.

Here is the letter from the Karnataka COC

Retirement age lowering real facts

The following are the facts about this case.

1) Economic Survey for 2018-19 tabled in Parliament by Hon’ble Finance Minister Nirmala Sitharamanji on 5th July 2019 which says The survey pointed out that this will also help plan in advance for pensions and other retirement provisions. Given that life expectancy for both males and females in India is likely to continue rising, increasing the retirement age for both men and women going forward could be considered in line with the experience of other countries, it added. Due to ageing population and increasing pressure on pension funding, many countries have begun raising the pensionable retirement age. Curiously, Economic Survey 2018-19 had made a strong case for increasing the retirement age in the wake of the rising life expectancy rate in India.

2) The Economic Survey has suggested that a higher retirement a would be crucial for the viability of the pension system. The present economic condition of the Government is not that good to observe higher pension liability .

3) Whenever the Center constitutes a Pay Commission, there is heightened anticipation that the retirement age will be reviewed. With the next pay revision due in 2026, the signalling may have begun now .

4) Economic Survey itself pointing to the need to create 55-60 lakh jobs annually over the next two decades. The total number of sanctioned posts among all the grades was over 38 lakh as on March 1, 2018. Of them, 33.47 lakh posts belong to Grade C. About 31.18 lakh of the total of 38 lakh posts are occupied. At present about 6 lakhs Central Government jobs are to be filled up, the Central Government can fill up these jobs on priority basis. If the retirement age is lowered by any formula then about 6 lakhs people will be retiring in 2020, then 12 lakhs vacancies will be altogether the running of the Government machinery will be quite difficult. This will impact the Government objects and goals .

5) By the 2021 lot number of the Central Government employees are due for retirement, here also lot of vacuum is created in Central Government as filling up of the Government Jobs is at slow pace. The actual work load is more than the employees, the Government should run its machinery and implement it program and policies for which adequate manpower is vitally required.

6) The Government has to pay out huge amount as pension benefits to these 6 lakhs employees on an average 25 lakhs amount is spent on each employee as pension benefit , financially which is likely to be about Rs 20,000 crores on the Government budget.

7) The BSNL management had suggested to Central Government reducing the retirement age from 60 years to 58 years, so far the Finance Ministry has not cleared it due to financial constraints.

8) The retirement age of Central government officials were last increased from 58 years to 60 years in 1998. Many state governments have raised the retirement age from 60 to 62 years. Once a benefit is given to an employee, it is very difficult to withdraw it. It is subjected to judicial intervention. The lowering of retirement age is not easy decision , the central or the state Government will take so easily. It will think in all angles before any such decision is taken.

Hence , to conclude it is just a proposals and it is very difficult to implement it due to various factors such as losing an experienced employee who can handle the work , lot of Central Government jobs are vacant which are to be filled up , lot of financial issues are involved apart from managing its resources.

Comradely yours
COC Karnataka

Source : Karnataka COC

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