Work until 63? Retirement age may be about to rise
Move comes following a letter from the prime minister
PHOTO: REUTERS
LAHORE:
Getting old and inching closer to retirement? The Punjab government might have good news for its aging civil servants.
The provincial administration has been deliberating over raising the retirement age to 63, which, if approved, could add to the burgeoning bill of salaries paid to provincial employees.
The move comes following a letter from the prime minister, who instructed the finance secretary to hold consultations with the establishment division and the finance departments of the Punjab and Khyber-Pakhtunkhwa governments to evaluate the legal, financial and administrative challenges of increasing the pensionable age and early retirement.
Every year, a hefty sum of Rs245 billion from the provincial kitty goes to pensioners, and another Rs337 billion goes to current employees.
The decision would allow civil servants to serve beyond the current retirement age.
To address the matter, the Punjab government formed a committee that recommended retirement age be set at 55, contrary to the proposal by the prime minister’s office.
In its recommendations, the provincial panel said that government employees, under the age of 50 years, should be allowed to retire if they have completed 25 years of service.
K-P passes bill to raise retirement age
According to experts, the proposal to increase the retirement age comes with a set of advantages and disadvantages. On the positive side, bureaucrats, who were otherwise, less productive, might become efficient.
On the other hand, an extension in the retirement age means fewer government positions would be up for grabs.
In its recommendations, the provincial government requested the federal government to devise a uniform retirement policy for all provinces.
According to the Punjab Finance Department, a significant portion of the provincial budget goes to aging pensioners. In addition to that, the province has been struggling with a growing trend of voluntary early retirements.
An increase in pensions by the government coupled with a growing population of retired civil servants translates into an added financial burden for the province, according to an expert.
The total pension for 2010-2011 stood at Rs34.6 billion.
Following the directives of the prime minister, Punjab Chief Secretary Yousuf Naseem Khokhar said the provincial pension policy was being reviewed by the administration.
According to the figures provided by the provincial exchequer, scores of employees retire each year due to which the government ends up paying hefty pensions and final settlements.
Published in The Express Tribune, August 24th, 2019.
Getting old and inching closer to retirement? The Punjab government might have good news for its aging civil servants.
The provincial administration has been deliberating over raising the retirement age to 63, which, if approved, could add to the burgeoning bill of salaries paid to provincial employees.
The move comes following a letter from the prime minister, who instructed the finance secretary to hold consultations with the establishment division and the finance departments of the Punjab and Khyber-Pakhtunkhwa governments to evaluate the legal, financial and administrative challenges of increasing the pensionable age and early retirement.
Every year, a hefty sum of Rs245 billion from the provincial kitty goes to pensioners, and another Rs337 billion goes to current employees.
The decision would allow civil servants to serve beyond the current retirement age.
To address the matter, the Punjab government formed a committee that recommended retirement age be set at 55, contrary to the proposal by the prime minister’s office.
In its recommendations, the provincial panel said that government employees, under the age of 50 years, should be allowed to retire if they have completed 25 years of service.
K-P passes bill to raise retirement age
According to experts, the proposal to increase the retirement age comes with a set of advantages and disadvantages. On the positive side, bureaucrats, who were otherwise, less productive, might become efficient.
On the other hand, an extension in the retirement age means fewer government positions would be up for grabs.
In its recommendations, the provincial government requested the federal government to devise a uniform retirement policy for all provinces.
According to the Punjab Finance Department, a significant portion of the provincial budget goes to aging pensioners. In addition to that, the province has been struggling with a growing trend of voluntary early retirements.
An increase in pensions by the government coupled with a growing population of retired civil servants translates into an added financial burden for the province, according to an expert.
The total pension for 2010-2011 stood at Rs34.6 billion.
Following the directives of the prime minister, Punjab Chief Secretary Yousuf Naseem Khokhar said the provincial pension policy was being reviewed by the administration.
According to the figures provided by the provincial exchequer, scores of employees retire each year due to which the government ends up paying hefty pensions and final settlements.
Published in The Express Tribune, August 24th, 2019.