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Showing posts with label Retirement age. Show all posts
Showing posts with label Retirement age. Show all posts

Tuesday, 3 May 2016

15:55

Restriction on EPF withdrawal

Restriction on EPF withdrawal 

Press Information Bureau 
Government of India
Ministry of Labour & Employment
02-May-2016 18:07 IST

Restriction on EPF withdrawal 

As per extant rules governing the withdrawal of Employer’s contribution from the Employees Provident Fund Scheme, a member can withdraw both the employer’s share of contribution and his own share under the following circumstances: - 

(i) On retirement from service after attaining the age of 55 years. 

(ii) On retirement on account of permanent and total incapacity for work due to bodily or mental infirmity. 

(iii) On migration from India for permanent settlement abroad. 

(iv) On termination of service in the case of mass or individual retrenchment. 

(v) On termination of service under a voluntary scheme of retirement. 

(vi) On ceasing to be an employee in any establishment. 

However, notification No. G.S.R.158(E) dated 10.02.2016 restricting the withdrawal of 3.67 per cent of employer’s share of contribution till the age of 58 years has since been withdrawn by the Government on 19.04.2016. 

This information given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in reply to a question in Lok Sabha today.

Source:Sapost

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Friday, 6 November 2015

05:57

Seventh CPC is planning to bring about a dramatic change in the retirement age of Central Government employees..!

Seventh CPC is planning to bring about a dramatic change in the retirement age of Central Government employees..!

Can the 7th Pay Commission recommend the lowering of retirement age for Central Government employees?

“The unconfirmed information says that the 7th Pay Commission is planning to bring about a dramatic change in the retirement age of Central Government employees.”

Yet another news story about the retirement age of Central Government employees surfaced yesterday. The reputed English news website of India Today featured a special article yesterday about the 7th Central Pay Commission. In the article, the 7th Pay Commission is likely to reduce the retirement age to 55 or on the completion of 33 years, whichever comes first.

This has raised the question in the minds of many if the Pay Commission has the authority to recommend the reducing of retirement age.

The Pay Commission has all the authority to present its explanations and recommendations about changes in the retirement age of Central Government employees. But, the Centre has the discretionary powers to either accept or reject the recommendations. The fifth Pay Commission recommended that the retirement age be increased. Based on the recommendation, the government increased the retirement age from 58 to 60, in May 1998. The Third Pay Commission also recommended the date of retirement of Central Government employees. The commission recommended that the retirement effect from the afternoon of the last day of the month in which the employee concerned attains the age of superannuation instead of the afternoon of the actual date of his superannuation. But, for now, there’s no confirmed news about the recommendation of reduction in retirement age.

Initially it was 60 years of age or 33 years of service, then it changed as 58 or 33 years service and now it becomes as 55/33 years. Though many are ready to even accept the changes in retirement age, what is unpalatable for them is the idea of linking the years of service with their age. If a talented employee joins the Central Government services at a very young age, then he is likely to lose up to seven years of service tenure.

All the government employees, especially those above the age of 40, are vehemently opposing the idea. The questions they are putting forth are –
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Wednesday, 21 October 2015

08:36

Revising Retirement age does not come under the purview of 7th Pay Commission.

Revising Retirement age does not come under the purview of 7th Pay Commission.

Recently the news about retirement age is blown out of proportion in Social Media. In Social Media it has been signaled casually that the retirement age will be brought down to 58 years. Initially it was said that 7th pay commission going to recommend the criteria for retirement age as either 33 years of Service or 60 Years of age whichever comes first.

And gradually it is reduced to 58 years of age or 33 years of service and finally ends up with 30 years of service or at the age of 55 years.

7th pay commission Vs Retirement Age

Does it worth to believe the news circulated in social media about 7th pay commission recommendation and retirement age..? We asked the Federation sources about this and they want to maintain anonymity told that it depends upon the individuals to decide whether it is true or not. We should not blame the media for everything. We should be able to know the difference between the news and rumors.

One of our Sources told that revising the retirement age will not fall under the purview of Pay commission. It should be decided by central government only. No Pay commission has recommended anything about Retirement age so far.
Federation Leaders were asked about this retirement age issue, when it became sensational in Print and e-Media, why don’t they come forward to clear the doubts on this sensational issue?. They told that they didn’t want do give importance to the rumors and hear says.

They said, “We need to clarify the doubts of our cadres across the country whenever it was rumored in social media about their service related sensational issues. But when sensational becomes routine, it’s not our business to respond to such hearsays on daily basis”

“As far as retirement age is concerned we know that 7th pay commission cannot recommend revising the retirement age of central government employees, since it does not fall under the purview of 7th Pay Commission. Even we won’t accept it if the central government tries to reduce the retirement age,” the sources added.

Source:http://govtstaffnews.in/revising-retirement-age-does-not-come-under-the-purview-of-7th-pay-commission/
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Sunday, 26 July 2015

19:14

Retirement Benefits of Central Government Employees

Retirement Benefits of Central Government Employees

Pension

The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive superannuation pension on completion of at least 10 years of qualifying service.

In the case of Family Pension the widow is eligible to receive pension on death of her spouse after completion of one year of continuous service or before even completion of one year if the Government servant had been examined by the appropriate Medical Authority and declared fit for Government service.

W.e.f 1.1.2006, Pension is calculated with reference to average emoluments namely, the average of the basic pay drawn during the last 10 months of the service or last basic pay drawn whichever is beneficial. Full pension with 10/20 years of qualifying service is 50% of the average emoluments or last basic pay drawn whichever is beneficial. Before 1.1.2006, for qualifying service of less than 33 years, amount of pension was proportionate to the actual qualifying service broken into completed half-year periods. For example, if total qualifying service is 30 years and 4 months (i.e. 61 half-year periods), pension will be calculated as under:-

Pension amount = R/2(X)61/66

where R represents average reckonable emoluments for last 10 months of qualifying service or the last pay drawn as opted by the govt servant.

Minimum pension presently is Rs. 3500 per month. Maximum limit on pension is 50% of the highest pay in the Government of India (presently Rs. 45,000) per month. Pension is payable up to and including the date of death.

7TH-PAY-COMMISSION-UPDATES

Commutation of Pension

A Central Government servant has an option to commute a portion of pension, not exceeding 40% of it, into a lump sum payment with effect from 1.1.1996. No medical examination is required if the option is exercised within one year of retirement. If the option is exercised after expiry of one year, he/she will have to under go medical examination by the specified competent authority.

Lump sum payable is calculated with reference to the Commutation Table constructed on an actuarial basis. The monthly pension will stand reduced by the portion commuted and the commuted portion will be restored on the expiry of 15 years from the date of receipt of the commuted value of pension. Dearness Relief, however, will continue to be calculated on the basis of the original pension (i.e. without reduction of commuted portion).

The formula for arriving for commuted value of Pension (CVP) is

CVP = 40 % (X) Commutation factor* (X)12

* The commutation factor will be with reference to age next birthday on the date on which commutation becomes absolute as per the New Table as Annexure to this Deptt’s O.M. No. 38/37/08- P&PW(A) dated 2.9.2008

Death/Retirement Gratuity

Retirement Gratuity

This is payable to the retiring Government servant. A minimum of 5 years qualifying service and eligibility to receive service gratuity/pension is essential to get this one time lump sum benefit. Retirement gratuity is calculated @ 1/4th of a months Basic Pay plus Dearness Allowance drawn before retirement for each completed six monthly period of qualifying service. There is no minimum limit for the amount of gratuity. The retirement gratuity payable is 16 times the Basic Pay, subject to a maximum of Rs. 10 lakhs.

Death Gratuity

This is a one-time lump sum benefit payable to the widow/widower or the nominee of a permanent or a quasi-permanent or a temporary Government servant, including CPF beneficiaries, dying in harness. There is no stipulation in regard to any minimum length of service rendered by the deceased employee. Entitlement of death gratuity is regulated as under:

Qualifying Service
Rate
Less than one year
2 times of basic pay
One year or more but less than 5 years
6 times of basic pay
5 years or more but less than 20 years
12 times of basic pay
20 years of more
Half of emoluments for every completed 6 monthly period of qualifying service subject to a maximum of 33 times of emoluments.


Maximum amount of Death Gratuity admissible is Rs. 10 lakhs w.e.f. 1.1.2006
Service Gratuity

A retiring Government servant will be entitled to receive service gratuity (and not pension) if total qualifying service is less than 10 years. Admissible amount is half months basic pay last drawn for each completed 6 monthly period of qualifying service. There is no minimum or maximum monetary limit on the quantum. This one time lump sum payment is distinct from and is paid over and above the retirement gratuity.

Issue of No Demand Certificate

Dues owed by the retiring employees on account of Licence Fee for Government accommodation, advances, over payment of pay and allowances are required to be assessed by the Head of Office and intimated to the Accounts Officer two months in advance of the date of retirement so that these are recovered from retirement gratuity before payment. For this purpose the Licence Fee for those in occupation of Government accommodation is taken into account up to the end of the permissible period for which accommodation can be retained after retirement under the Rules on normal rent. The recovery of Licence Fee beyond that period is the responsibility of the Directorate of Estates. If, for any reason final dues cannot be assessed on time, then 10% of gratuity is withheld from gratuity

General Provident Fund and Incentives

As per General Provident Fund (Central Services) Rules, 1960, all temporary Government servants after a continuous service of one year, all re-employed pensioners (Other than those eligible for admission to the Contributory Provident Fund) and all permanent Government servants are eligible to subscribe to the Fund. A subscriber, at the time of joining the fund is required to make a nomination, in the prescribed form, conferring on one or more persons the right to receive the amount that may stand to his credit in the fund in the event of his death, before that amount has become payable or having become payable has not been paid. A subscriber shall subscribe monthly to the Fund except during the period when he is under suspension. Subscriptions to the Provident Fund are stopped 3 months prior to the date of superannuation. Rates of subscription shall not be less than 6% of subscribers emoluments and not more than his total emoluments. Rate of interest on GPF accumulations with effect from 1.4.2009 is 8% compounded annually and the rate of interest will vary according to notifications of the Government. The Rules provide for drawal of advances/ withdrawals from the Fund for specific purposes.

Deposit Linked Insurance Revised Scheme

Under the GPF Rules, on the death of subscriber, the person entitled to receive the amount standing to the credit of the subscriber shall be paid an additional amount equal to the average balance in the account during the 3 years immediately preceding the death of the subscriber subject to certain conditions provided in the relevant Rule. The additional amount payable under that Rule shall not exceed Rs. 60,000/-. To get this benefit, the subscriber should have put in at least 5 years service at the time of his/her death

Contributory Provident Fund

The Contributory Provident Fund Rules (India), ,1962 are applicable to every non-pensionable servant of the Government belonging to any of the services under the control of the President. A subscriber, at the time of joining the Fund is required to make a nomination in the prescribed Form conferring on one or more persons the right to receive the amount that may stand to his credit in the Fund in the event of his death, before that amount has become payable or having become payable has not been paid.

A subscriber shall subscribe monthly to the Fund when on duty or Foreign Service but not during the period of suspension. Rates of subscription shall not be less than 10% of the emoluments and not more than his emoluments. The employers contribution at that percentage prescribed by the Government will be credited to the subscribers account and this is 10%. Rate of interest with effect from 1.4.2009 is 8% compounded annually. The Rules provide for drawal of advances/ withdrawals from the CPF for specific purposes. As in GPF Rules, the CPF Rules also provide for Deposit Linked Insurance Revised Scheme.

Leave Encashment

Encashment of leave is a benefit granted under the CCS (Leave) Rules and not a pensionary benefit. Encashment of Earned Leave/Half Pay Leave standing at the credit of the retiring Government servant is admissible on the date of retirement subject to a maximum of 300 days. There is no provision under the Rule for payment of interest on delayed payment of Leave Encashment

Central Government Employees Group Insurance Scheme

A portion of monthly contributions paid while in service is credited in a Saving Fund, on which interest accrues. A Government servant while entering service has to apply in Form No. 4 of the above Scheme to the Head of Office, who shall issue a sanction for the payment of subscribers accumulation in the Savings Fund segment together with interest and arrange for its disbursement, soon after retirement. Payments under this Scheme are made in accordance with the Table of Benefit which takes in to account interest up to the date of cessation of service. Insurance cover benefit under this Scheme is available to the family in the event of death of the subscriber. No interest is payable on account of delayed payments under this Scheme.

Source: gservants
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19:06

Pension Classes Granted to Government Employees

Pension Classes Granted to Government Employees

Superannuation

A superannuation pension shall be granted to a Government servant who is retired on his attaining the age of 60 years.

Retiring Pension:

A retiring pension shall be granted to a Government servant who retires, or is retired before attaining the age of Superannuation or to a Government servant who, on being declared surplus opts, for voluntary retirement.

Voluntary Retirement:

Any Government servant can apply for voluntary retirement, three months in advance, only after the completion of twenty years of his qualifying service, provided there is no vigilance or Departmental Enquiry pending /initiated against him/her.

Invalid Pension:

Invalid Pension may be granted if a Government servant applies for retirement from the service on account of any bodily or mental infirmity which permanently incapacitates him/her for the service. The request for invalid pension has to be supported by medical report from the competent medical board.

Compensation Pension:

If a Government servant is selected for discharge owing to the abolition of a permanent post, he shall, unless he is appointed to another post the conditions of which are deemed by the authority competent to discharge him/her to be at least equal to those of his own, have the option

(a) of taking compensation pension to which he may be entitled for the service he had rendered, or

(b) of accepting another appointment on such pay as may be offered and continuing to count his previous service for pension.

Compulsory Retirement Pension:

A Government servant compulsorily retired from service as a penalty may be granted, by the authority competent to impose such penalty, pension or gratuity, or both at a rate not less than two-thirds and not more than full compensation pension or gratuity, or both admissible to him on the date of his compulsory retirement. The pension granted or allowed shall not be less than Rs. 3500/- p.m.

Compassionate Allowance:

(i) A Government servant who is dismissed or removed from service shall forfeit his pension and gratuity:

Provided that the authority competent to dismiss or remove him from service may, if the case is deserving of special consideration, sanction a compassionate allowance not exceeding two-thirds of pension or gratuity or both which would have been admissible to him if he had retired on compensation pension.

(ii) A compassionate allowance sanctioned under the proviso to sub-rule (i) shall not be less than the amount of Rupees one thousand nine hundred and thirteen per mensem.

Extraordinary Pension:

Extraordinary Pension in the form of Disability pension/extraordinary family pension may be paid to the Government servant/his family if disablement/death (or the aggravation of disablement/death)of the Government servant, during his service, are attributed to the Government service. For the award of extraordinary pension, there should thus be a casual connection between disablement and Government service; and death and Government service, for attributability or aggravation to be conceded. The quantum of the pension, however,depends upon the category of the disablement/death.

Government servants appointed on or after 1.1.2004 are not covered by the CCS(Extraordinary Pension) Rules.

Family Pension:

Family pension is granted to the widow / widower and where there is no widow / widower to the children of a Government servant who entered in service in a pensionable establishment on or after 01/01/1964 but on or before 31.12.2003 or having entered service prior to that date came to be governed by the provisions of the Family Pension Scheme for Central Government Employees, 1964 if such a Government servant-

(i) dies while in service on or after 01/01/1964 or

(ii) retired/died before 31.12.1963 or

(iii) retires on or after 01/01/1964

and at the time of his death was in receipt of pension.

Family pension is payable to the children up to 25 years of their age, or marriage or till they start earning a monthly income exceeding Rs.3,500/- + DA admissible from time to time p.m. whichever is earlier.

Widow daughter / divorced daughter/ unmarried daughter of deceased Government servant is also entitled for the family pension till her remarriage or up to life time or starts earning a monthly income exceeding Rs.3,500/- + DA admissible from time to time p.m. whichever is earlier.

Family pension is also payable to the dependent parents of deceased Government servants w.e.f. 01/01/98, where there is no claimant i.e. spouse or child for family pension, alive.

If the son or daughter, of a Government servant is suffering from any disorder or disability of mind or is physically crippled or disabled so as to render him or her unable to earn a living even after attaining the age of 25 years, the family pension can continue to be paid for life time subject to conditions.

Source :gservants
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Tuesday, 21 July 2015

23:15

Retirement Age Controversy Begins Again

Retirement Age Controversy Begins Again

Retirement Age of Central Government Employees Controversy Begins Again

“Retirement age for Central Government employees is 60 years now. It was raised to 60 from 58 in 1998(Dopt order), when the then NDA Government led by Atal Bihari Vajpayee”

Last year, there were rumours that the centre was planning to raise the retirement age from 60 to 62. This time, retirement age makes headlines one again that the superannuation age may be decreased to 58.

Last week the most popular website for CG Employees, www.gservants.com has published an article about the recommendations of 7th CPC, as unconfirmed news. In this, 7th CPC may recommend for reduce in age of retirement of CG Employees will be in two criteria. The retirement age as the completion of 33 years of service, or at the age of 60, whichever comes first. The panic was further increased by similar claims on Facebook and Whatsapp also, because the criteria for retirement as at the age of 58 or completion of 33 years.

7th Pay Commission Report and its important recommendation

If an employee joins central government services at the age of 27, he would complete 33 years of service at the age of 60. If he had joined the services before the age of 27, his position becomes tricky. If someone joins the central government services soon after graduation, at the age of 20, he will be forced to retire at the age of 53.

On the internet, this condition was distorted as 33 years of service or 58 years of age, whichever comes first. This caused great worry to all because the 60/33 rule would affect only those who had joined the service before the age of 26, but the 58/33 rule would lead to all those who had joined after the age of 28 to lose two years of service. Also worth noticing is the fact that the service period is very short in such cases.

Nobody is sure yet if the 7th Pay Commission will include the recommendations on retirement age in its report to the government. But, discussions were held on this issue. There is no information about when the decision will be implemented.

Before May 1998 – 58 Years
After May 1998 – 60 Years and …!

Reducing 60 to 58 is like ‘losing the sword and growing the tail.’

Source: www.cgstaffnews.in
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Thursday, 21 May 2015

08:31

Take-home salary to take a hit after changes in PF Act

Take-home salary to take a hit after changes in PF Act

Ministry for deduction of provident fund on house rent, gratuity, other allowances along with basic wage.

Your take-home salary is set to see a sharp cut with a labour ministry proposal to include house rent, gratuity, traveling and other allowances as part of the “contributing wages” on which provident fund would be deducted.

The proposal is part of the final amendments of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, that has also sought to increase PF deductions to 12 per cent of the contributing wages from the current rate of 10 per cent.

These amendments have already been cleared by the EPFO’s Central Board of Trustees and are expected to be taken to the Union Cabinet by next month and tabled in Parliament in the Monsoon Session.

The proposal is a significant change from the current practice, wherein PF is deducted only on the basic wages. Under the new proposal, even contributions to the related Employees’ State Insurance Corporation will be part of the “contributing wages” on which PF will be deducted.

The proposal comes due to the different wage structures followed by establishments and High Court rulings. “To bring uniformity and transparency in the calculation of contribution payable by the employers, the definition of the contributing wages is proposed to be included. Specific details of allowances included or excluded for the purpose of PF contribution have been mentioned to avoid any ambiguity,” said the labour ministry.

It has also called for a significant expansion of the coverage of the scheme to include establishments with up to 10 workers, all types of establishments as well as all kinds of employees including those on contract and apprentices.

“The definition of employee has been broadened to include all types of workers including contractor workers and apprentices,” said the ministry, adding it would include those who “receive their wages directly or indirectly from the employer”.

Similarly, the term “establishment” would be expanded to include “any organisation, institution, corporation, local body, company, co-operative society, trusts, self help groups or any other legal entity employing one or more person.”

However, a special provision has been included for reducing the rate of contribution for establishments employing less than twenty person.

Following up on the Budget announcement, the draft amendments have also proposed to give a one time chance to members of the EPFO to switch to the National Pension System.
Doing away with the prescribed retirement age of 58 years for the EPFO scheme, the amendments, which were finalised by the labour ministry after meetings with trade unions and employer representatives, have said that it will now be decided by the Central government.

But providing relief to firms facing hard times, the draft amendments have sought to empower the government reduce or waive contribution in case of establishment or class of establishments.

 Source : The New Indian Express.
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Wednesday, 6 May 2015

08:46

Order for Merger of 50% DA, Retirement age news goes viral in Social Media

Order for Merger of 50% DA, Retirement age news goes viral in Social Media

Recently rumour mill went overdrive in social media with the following news that

1.central government decided to Merge 50% DA with basic pay with effect from 1.1.2015 and order will be issued within 15 days

2. Encashment of Earned Leave to be curtailed to 180days instead of existing 300 days.

3.It went on to say that age of Retirement will be on completion of 33 Years of service or at the age of 58 Years whichever is earlier

According to the Social Media , the above strong decisions were taken in last three meeting of cabinet committee to recommend 7th pay commission. Further the post published in social media warned the central government employees that if above decisions are implemented; they should not expect more from 7th Pay Commission. Since it is considered to be the indication of what the think tank of central government will do for its employees.

We enquired about this rumour with one of the Member to the National council JCM, who recently met the 7th Pay Commission. According to him, the central government has firm on its decision not to accept the Merger of DA with Pay, since the due date of the 7th Pay Commission to submit its recommendation is nearing and the central government in many occasions cleared that the recommendation of 7th pay commission will be implemented from 1.1.2016. So there is no question of issuing order for merger of 50% DA with effect from 1.1.2015.

Further he clarified that the present government wanted to use the man-hours of central government employees productively by introducing new systems like bio metric attendance etc. Hence curtailing EL Encashment will lead the central government employees to take more leave if it is not allowed for encashment. So there is no need to implement such proposal as government point of view is against taking leave by Govt officials.

There is mixed response from the sources whether the retirement age of central government employees will be revised or not. It is believed that the present government is in favour of reducing retirement age to 58. But at the same time government doesn’t want loose resources of knowledge gained through experience by reducing retirement age of Government employees. Since the work culture of government service is deteriorating day by day due to various factors , govt would like to retain the experience of the senior Government officials . Anubhav is the one of the initiative introduced by the central government to improve the work culture of youngsters in government service. So there will not be any change in retirement age of central government employees at present.

Source:www.gservants.com

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Sunday, 15 March 2015

06:19

Retirement age at 58 is justified – High court – Tribune News


Retirement age at 58 is justified – High court – Tribune News

Saurabh Malik
Tribune News Service

Chandigarh, January 20

The Punjab and Haryana High Court today ruled that the decision to enhance the employees’ retirement age from 58 to 60 by the previous Congress government led by Bhupinder Singh Hooda was an attempt to garner votes just before the Assembly elections; and was not an honest decision.

The scathing observations on the previous government’s conduct came as Justice Tejinder Singh Dhindsa upheld the Khattar government’s decision of reducing the age from 60 to 58.

Justice Dhindsa ruled: “The timing of such decision cannot be lost on this court. The state Assembly elections were around the corner. The Model Code of Conduct was on the verge of being imposed. The decision to enhance the age of retirement and that too in derogation of the relevant rule can only be seen as an attempt to garner a particular vote bank…

“This court would have no hesitation in holding that the action of the state government in reversing the earlier decision of enhancing the age of retirement from 58 years to 60 years by terming the same to be not honest is well founded”, he said.

The Hooda Government had last year increased the retirement age of the employees by two years to 60, shortly before the October 15 Assembly election.

Lashing out at the previous regime, the Khattar Government had claimed that the decision was taken to gain political mileage.
In an affidavit submitted before the high court, the government had claimed that the decision was “not honest” and was taken even though no such demand or representation was received from any association or union of Haryana Government employees.

The affidavit by Secretary to Haryana Government D Suresh said the Council of Ministers on its own decided that the age was to be increased. The issue was not even placed before the Finance Department for consideration, it was added.

The ruling came on a bunch of petitions by Baljit Kaur and other employees. Among other things, they had raised questions on the legality of council of ministers to take such decisions.

The petitioners argued that the council of ministers, headed by Chief Minister Manohar Lal Khattar, was unconstitutional as it lacked required minimum numbers. The petitioners claimed that the total strength of council of ministers was 10, including the Chief Minister. But, in terms of Article 164(1-A) of the Constitution, the number of ministers, including the Chief Minister, was not to be less than 12.

Dealing one by one with the issues raised by the petitioners, Justice Dhindsa asserted the provisions of Article 164 (1-A) were mandatory to the extent that the strength of the council of ministers, including the Chief Minister, was not to exceed 15 per cent of the total Members of the Legislative Assembly. It was not with regard to a minimum number of ministers.

Justice Dhindsa added the decision contained in the instructions dated August 26, 2014, for enhancing the age of superannuation from 58 years to 60 years “would not acquire the character of a statutory rule”. “Such executive instructions cannot be accepted to be a statutory amendment of the existing Rule governing the age of retirement….. Accordingly, it is held that there is no right that had come to vest in the petitioners to continue in service till the age of 60 years on the strength of instructions, which are in derogation of the relevant statutory rule.

Justice Tejinder Singh Dhindsa asserted that the relationship between the government and its employees was not “like an ordinary contract of service between a master and servant”. Once appointed to a post or office, an employee’s rights and obligations were determined by the statute, which may be framed by the government.

Justice Dhindsa added that the language of the relevant rule was “clear and unambiguous”. “Every government employee shall retire upon attaining 58 years of age and must not be retained in service thereafter except in exceptional circumstances. Such rule has not been amended till date”.

“This court does not find any infirmity in the decision of the state government in reducing the age of retirement of the petitioners from 60 years to 58 years,” Justice Dhindsa concluded.

The state Assembly elections were around the corner. The Model Code of Conduct was on the verge of being imposed. The decision to enhance the age of retirement and that too in derogation of the relevant rule can only be seen as an attempt to garner a particular vote bank…. — HC Bench

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