CHENNAI: After 41 years, Tamil Nadu has increased the retirement age of government employees from 58 to 59. As per an order issued on Thursday, the extension will apply to all those on service as on date, and to those set to retire on superannuation from May 31. It will also be applicable to all staff in aided educational institutions and employees of all Constitutional/statutory bodies, PSUs, including all State Corporations, local bodies, boards, commissions, and societies.
According to sources, about 25,000 employees are set to retire this year. The government’s measure is seen as a move to assuage the feelings of its employees, who are unhappy over the recent cost-cutting measures, including freezing of additional instalment of Dearness Allowance, reducing interest rate on General Provident Fund, and suspending earned leave encashment.
Speaking on the financial implications of the move, a source said: “We are facing an unprecedented crisis owing to COVID-19. Pension commitments for about 25,000 employees set to retire this year will be about `500 crore. Around `4,500 crore towards gratuity, leaves, salary, pension and other retirement benefits have to be settled as well. Now, the payment of around `5,000 crore will get postponed to next year.” The Centre and many other State governments have already increased the retirement age of their employees by one or two years.
The last time retirement age was increased was under MG Ramachandran’s regime in 1979, when it went up from 55 to 58. Thursday’s move has evoked mixed reactions.Tamil Nadu Government Employees’ Association president M Anbarasu told Express, “In March, the government allocated monies required for salary, gratuity and pension. Now, it using funds for COVID-19. In the case of doctors, nurses and technicians, the government has re-appointed them on contract basis. Similar ways should have been followed for government employees too.”
Pointing out that there were around 15 lakh employees under the government and around 30,000 would retire every year, increasing the retirement age would affect the youth waiting. “A person is eligible for government job up to the age of 35. But, this move will undo the opportunities for those who completed 34. Similarly, promotional aspects of the existing employees are also gone,” Anbarasu said.
In all government office complexes, employees would stage demonstrations on Friday while adopting social distance and other safety measures, he added. S Moses, general council member, School Teachers Federation of India said, “As on date, around 97 lakh educated youth are on the job queue in TN. This move will affect the prospects of these youth. Despite claims about recruitment of teachers and categories of employees, in reality, the recruitment has been affected for more than 10 years. The move is aimed at postponing payment of retirement benefits to the next government, which takes over in about 10 months. We cannot accept this.”
However, Peter Anthonysami, president, Tamil Nadu Secretariat Association, welcomed the move. “We have to accept this decision, given the present financial position. Keeping experienced employees while facing crisis is a welcome move,” he said. Economist J Jayaranjan is of the view that the government is postponing its commitment to the retiring employees. But, in reality, this would cut into the opportunities of youth.
“For the first time, State government has resorted to such a move since all avenues to generate revenue are closed. Borrowing space is also getting narrowed. The Centre is not devolving sufficient funds despite many memoranda,” he said. “The Union government has various ways of managing situations through extra-budgetary resources. For example, borrowing huge sums from the National Small Savings Fund. But the State government’s resources are limited,” Jayaranjan added. CPM State secretary K Balakrishnan, CPI State secretary R Mutharasan and VCK president Thol Thirumavalavan have objected to the move and urged to withdraw the order immediately.
CM’s Secretary bereaved
Chennai: Chief Minister Edappadi K Palaniswami on Thursday condoled the death of Poovaragavan (87), father of Jayashree Muralidharan, senior IAS officer and Secretary to Chief Minister. In a statement, the CMconveyed his condolences to Jayashree Muralidharan and her family.