Budget 2023: Pension age to be raised to 57?

THIRUVANANTHAPURAM: The state government is considering raising the pension age of government employees and teachers to 57 as part of cost reduction to overcome its financial crisis. There is also a proposal to raise the pension age in public sector institutions. The government can save Rs 4000 crore in the next financial year through this. It is likely to make an announcement regarding this in the upcoming budget.

The 11th pay commission chaired by K Mohandas had recommended that the pension age of employees and teachers be raised to 57. At present, the pension age of government employees and teachers is 56.

The matter of raising the pension age was also discussed in the meeting held by Finance Minister KN Balagopal with representatives of employees' organizations ahead of the budget. The government has been encouraged by favourable proposals from the organizations. There is no significant opposition within the Left Front regarding raising the pension age. However, the front is concerned that the youth may protest against the move.

Although the government issued an order to raise the pension age in public sector institutions to 60 three months ago, it was forced to withdraw the order due to strong opposition from various quarters. It was also decided to appoint a committee to study the revision of the pension age of employees of KSEB, KSRTC, and the Water Authority. The Rs 9,000 crore master plan prepared by RIAB for the rehabilitation of public sector enterprises also proposes to raise the pension age.

Out of 134 state PSUs, 114 are functioning. While the pension age is 60 in some PSUs, it is 58 in others. In some establishments, the pension age of labourers is 60 years while that of other employees is 58 years. It is proposed to unify all these and raise the retirement age to 60 in all public sector institutions.