Raising retirement age limit

Raising retirement age limit

Khyber Pukhtunkhwa cabinet has approved amendments in the Civil Servants Act 1973 to raise the limit of retirement on superannuation from 60 years to 63 years. Necessary legislation by the provincial legislature will be required for the implementation of this decision. The financial stringency compelled the provincial government to take this decision for which federal government was also consulted.

Raising the age limit of superannuation for the purpose of retirement has both merits and demerits. It will accrue an annual saving of Rs.24 billion on account payments made to the retiring government servants on account of commuted part of gross pension, encashment of 12 months salary, T.A and transfer grants. But on the other hand it will exacerbate the issue of unemployment and making a large number of educated youth overage if upper age limit for fresh appointment is not increased by three years. Amendment for upward revision of age limit for fresh appointment in the Civil Servants should also have been approved. If it is not done it will make the future career of educated youth bleak.

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