Increase in retirement age to 63: Dr Ishrat-led task force defers proposal

ISLAMABAD: Dr Ishrat Husain-led Task Force on Civil Service Reforms has deferred the proposal for enhancing the retirement age of government servants from 60 to 63.

Informed sources said that the Task Force considered the proposal but decided to defer it till the finalization of some basic civil service reforms, including the overhauling of the present performance management system.

When approached, Dr Ishrat Husain confirmed to The News that the proposal to enhance the retirement age was considered by the task force and deferred till the introduction of some fundamental civil service reforms.

The task force, according to sources, observed that only following the overhauling of the present performance management system, the proposal for enhancement of retirement age could be revisited in order to set guidelines for those government servants whose retirement age could be extended on the basis of merit, efficiency and performance.

Sources said that confusion regarding the enhancement of retirement age has been created because of KP. Last week, the KP cabinet was reported to have extended retirement age of the provincial department employees 63 years. It was claimed that the unprecedented decision would save an amount of Rs24 billion per annum for the provincial government.

Briefing the media regarding the decisions taken in the cabinet meeting, the Provincial Minister for Information Shaukat Yousafzai while justifying the increase in the retirement age had said that the superannuation age for government employees in education and health sector in India is 60-65 years whereas it was also 60-65 in Europe and Brazil, 62 in Japan and 67 in the United States. He informed that Article 240(b) of the Constitution allows the provincial government to enact legislation from the provincial legislature to this effect.

According to media reports, Yousafzai recalled that initially in Civil Servant Act 1973, the retirement age for government employees was 50 which was later enhanced to 60 and enforced from last 35 years. The life expectancy in Pakistan had increased to 63 years in 2018 from 55 in 1973, he said, adding that each year around 5000 employees reached the age of superannuation where the ratio of premature retirement is also around 50/50. Therefore, the number of employees attaining the age of 60 has reached to 2500 which cost Rs 6 billion to the provincial kitty.

It is said that the Chief Secretary KP had his reservation regarding increase in the retirement age by the provincial government. The CS, it is said, was of the view that the decision to extent age of retirement to 63 years may bring some immediate saving but it is not an alternate solution.

It was said that the government spending on pension would rise at a time when the KP government would be in the last year of its term, needing source of finances to win next election.

The CS, it is said, had added that in the absence of clear policy on pension contribution, such decision may not be rewarding.

Discussion on the proposal for increase in retirement age recently became the focus for media after a letter dated 11th June from Prime Minister’s Office was found circulating through social media. The said letter showed the premier desiring that finance secretary should hold consultations with the establishment division and the finance departments of Punjab and KP to evaluate legal, financial and administrative implications of increasing the age of retirement and early retirement.