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Retire at 58, but 60 more desirable

The PRC has even noted that 60 is the more desirable retirement age

THIRUVANANTHAPURAM: Increase in the number of pensioners and the consequent unproductive drain on the economy, and the relatively small period of service put in by employees have prompted the Tenth Pay Revision Commission to recommend an increase in pension age to 58. The PRC has even noted that 60 is the more desirable retirement age.

The PRC report said that though life expectancy had been increasing steadily in the state for the last four decades, the retirement age of the State government employees remained at 55 years until 2011 when it was increased to 56 years.

“As of now, the average age of joining in service is 33 years, leaving only 23 years of effective service before retirement,” the report said.

According to the PRC, this relatively narrow window of service has led to a situation where an employee has to be paid pension for a much longer period than the time spent in service. Further, the PRC noted, the percentage of pensioners to serving employees is about 100 percent.

“If retirement age is not increased at least now, the situation will only worsen, leading to a much higher percentage of pensioners than serving employees, increasing the State’s liability without any returns,” the report noted.

The Commission used national trends to argue its case. “Both in the Central Government and in States, the trend is to raise the retirement age. In Government of India, the retirement age has been raised to 60 years and many of the States have already accepted the pattern adopted by the Centre and now there is hardly any State, where the retirement age is below 58 years,” the report argued.

What’s more, in Kerala too the retirement age of teaching faculty of Medical Colleges, professors in Universities and the entire State government employees who joined service after introduction of contributory pension scheme is 60 years. The PRC also stated that though it preferred 60 as the retirement age, it was recommending only 58 considering what it termed “the resentment of the unemployed youth”.

( Source : deccan chronicle )
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