BANGALORE: The State Government employees were in for largesse when the announcement of an increase in the age of superannuation from 58 years to 60 years came in the State Budget. While the announcement is likely to benefit around 50,000 employees immediately it is expected to affect many employees in terms of promotional avenues.
The sanctioned strength of the State staff is around 5.35 lakh while over 50,000 employees are working in various State-aided institutions and organisations, who will benefit from the announcement.
It is learnt that around 50,000 employees were expected to retire from services by 2010, and most of these employees would be benefited by the largesse. Sources in the Government told The Hindu that the immediate effect of the raise in the retirement age would affect a number of employees who were expecting promotions in the near future.
“Some may even retire without having been promoted,” sources said.
With the increase in the retirement age, the Government in the immediate future would save on payment of pension benefits such as commutation amount and death cum retirement gratuity. “On an average 15,000 to 20,000 employees retire annually and get an average of Rs. 6 lakh as retirement benefits.
The Government now plans to divert the amount saved on pension benefits towards development works,” the sources said.