THIRUVANANTHAPURAM: Although the government withdrew its move to raise the pension age in public sector institutions due to strong opposition, it is hinted that the government aims to implement the raise in a phased manner through unification. Besides overcoming the current financial crisis, the government also intends to ease the financial problems of the next three years with this move.

The Oommen Chandy government had unified the pension age of government employees from 55 to 56 with effect from April 1, 2013. The first Pinarayi government that came to power in 2016 continued that unification. If unification is implemented again, the pension age of government employees may be raised to 57 and that of public sector employees to 60.

It is being assessed that reduction in expenditure, restriction of welfare schemes, reduction of loan interest, redeployment of employees, reduction of subsidies and hiring ban etc. are not feasible in dealing with the fiscal deficit. The report submitted by J Jose, TV Shekhar committee, which was appointed by the government last year to study about raising the pension age, had pointed out that it is necessary to raise the pension age due to health and social reasons.

Current pension age:

• 56- 70% of government employees
• 58- Employees of Public Sector Undertakings with EPF
• 60- 30% of government employees in Participatory Pension Scheme, Medical college teachers and civil servants

Currently in government service:

• 5.10 lakh employees
• 5.37 lakh pensioners

Pension Liability:

• Rs 1956 crores in 2000-01
• Rs 19064 crores in 2019-20
• Rs 26898 crore in 2021-22

Strict restrictions on taking loan

• Rs 17936 Crores-approved by Centre till December this year
• Rs 13936 Crores-already taken

Salary revision last year:

• 45585 crores -Salary expenses
• 26585 crore-Pension expenses
• 24777 crores- additional liability
• 4,000 crores—benefits to be paid to 19,000 retirees this year