Hyderabad: A proposal to enhance the retirement age of state govt employees from 61 to 65 years is reportedly under active consideration by the state government, considering the financial condition and mounting pending bills of employees and pensioners.
The previous BRS govt faced backlash from the youth, mainly the unemployed, who claimed they lost job opportunities due to the retirement age enhancement by the KCR-led government in March/April 2021, which increased the retirement age from 58 to 61 years. Though the incumbent govt is wary of possible backlash from the youth, sources in the govt said it does not have much choice as it lacks the funds to pay retirement benefits in lump sum.
The Congress govt can claim to have already provided 55,000 government jobs to youth and plans to fill remaining vacancies as per the job calendar. However, chief minister A Revanth Reddy, in consultation with his cabinet colleagues, is yet to make a final decision on enhancing the retirement age to 65.
Pending bills of employees and pensioners mounts to Rs 8,200 cr
On Sunday, the CM announced that the state govt is positively considering enhancing the retirement age of professors in state-run universities from 60 to 65 years. This has fueled speculation among employees and pensioners that the superannuation age will be increased, and this discussion has gained momentum.
A leader of the govt employees’ association told TOI that the pending bills of govt employees and pensioners have mounted to over Rs 8,200 crore, and another Rs 5,000 crore are required when 6,000 employees retire in another six to eight months.
“Though the Congress government is releasing Rs 6,500 crore monthly salaries of employees and pensions on time, it has not been able to clear the pending bills of employees and pensioners towards medical reimbursement and other expenses.
The govt reportedly borrowed funds to implement its Rythu Bharosa, Indiramma Athmeeya Bharosa, and Indiramma housing schemes. The govt does not have the money to pay pending bills and retirement benefits in lump sum. Enhancing the retirement age and delaying payments by three to four years seems to be the only option,” said a leader of the employees’ union. A senior official told TOI that, in all, 9,000 employees each will retire in the calendar years of 2025, 2026, and 2027, and less than 8,000 in 2028. The govt may require over Rs 20,000 crore towards payment of retirement benefits including HRA, leave encashment, gratuity, etc.
The previous BRS govt faced backlash from the youth, mainly the unemployed, who claimed they lost job opportunities due to the retirement age enhancement by the KCR-led government in March/April 2021, which increased the retirement age from 58 to 61 years. Though the incumbent govt is wary of possible backlash from the youth, sources in the govt said it does not have much choice as it lacks the funds to pay retirement benefits in lump sum.
The Congress govt can claim to have already provided 55,000 government jobs to youth and plans to fill remaining vacancies as per the job calendar. However, chief minister A Revanth Reddy, in consultation with his cabinet colleagues, is yet to make a final decision on enhancing the retirement age to 65.
Pending bills of employees and pensioners mounts to Rs 8,200 cr
On Sunday, the CM announced that the state govt is positively considering enhancing the retirement age of professors in state-run universities from 60 to 65 years. This has fueled speculation among employees and pensioners that the superannuation age will be increased, and this discussion has gained momentum.
A leader of the govt employees’ association told TOI that the pending bills of govt employees and pensioners have mounted to over Rs 8,200 crore, and another Rs 5,000 crore are required when 6,000 employees retire in another six to eight months.
“Though the Congress government is releasing Rs 6,500 crore monthly salaries of employees and pensions on time, it has not been able to clear the pending bills of employees and pensioners towards medical reimbursement and other expenses.
The govt reportedly borrowed funds to implement its Rythu Bharosa, Indiramma Athmeeya Bharosa, and Indiramma housing schemes. The govt does not have the money to pay pending bills and retirement benefits in lump sum. Enhancing the retirement age and delaying payments by three to four years seems to be the only option,” said a leader of the employees’ union. A senior official told TOI that, in all, 9,000 employees each will retire in the calendar years of 2025, 2026, and 2027, and less than 8,000 in 2028. The govt may require over Rs 20,000 crore towards payment of retirement benefits including HRA, leave encashment, gratuity, etc.
