Retirement age of Employees of sick CPSEs

Retirement age of Employees of sick CPSEs Retirement age of employees of Sick Central Public Sector Enterprises... The Minister of Heavy Ind...

Retirement age of Employees of sick CPSEs

Retirement age of employees of Sick Central Public Sector Enterprises...

The Minister of Heavy Industry and Public Enterprises said in Parliament in a written reply to a question that the Department of Public Enterprises is not considering any proposal to enhance the age of superannuation of employees of all sick Central Public Sector Enterprises (CPSEs) from 58 to 60 years. 

However, Board for Reconstruction of Public Sector Enterprises (BRPSE) has been directed to undertake in-depth examination with regard to enhancement of age of superannuation from 58 to 60 years in respect of such CPSEs whose revival packages have been approved by the Government and which will continue to be in public sector after implementation of revival package, and thereafter make suitable recommendations to the concerned administrative Ministry for obtaining approval of competent authority. 

BRPSE has also been directed to ensure that the issue of the enhancement of age of superannuation from 58 to 60 years is adequately addressed while examining/recommending future proposals for revival of sick/loss making CPSEs and that the revival package has specific recommendation in this regard. 

BRPSE has not made any specific recommendation regarding enhancement of age of superannuation from 58 to 60 years in respect of employees of ITI Limited. 

Enhancement of age of retirement of Board and below Board level employees of profit earning Central Public Sector Enterprises (CPSEs).

CHAPTER II

PERSONNEL POLICIES

(b) Composition of Board of Directors

40. DPE/Guidelines/II(b)/40

Enhancement of age of retirement of Board and below Board level employees of profit earning Central Public Sector Enterprises (CPSEs).

The Government had taken a decision to increase the age of retirement from 58 to 60 years of Board level and below Board level employees of Central Public Sector Enterprises (CPSEs) in May 1998.  In May 2000, sick/unviable CPSEs were permitted to roll back the age of retirement from 60 to 58 years with the approval of the Cabinet. Subsequently in August 2001, the Cabinet delegated the authority to Minister-in-charge to approve proposals for roll back of age of retirement from 60 to 58 years for all CPSEs and all categories of employees, which are duly approved by their Board of Directors. This decision was reviewed in April 2005 and it was decided that the power for roll back of age of retirement of all categories of employees of CPSEs would thereafter vest with the Cabinet.

2. In the meantime, several sick CPSEs have started making profit and these CPSEs have requested for enhancement of age of retirement of its employees from 58 to 60 years.  The matter has further been reviewed by the Government and it has now been decided that the Minister-in-charge of the administrative Ministry/ Department concerned is empowered to approve the proposals of CPSEs to enhance the age of retirement from 58  to 60 years, provided that-

(a) The CPSE concerned should as per its audited annual accounts have made net profits for the last 3 years continuously and should have a positive net worth during the last three years.

(b)The CPSE has not availed any budgetary support during the last 3 years and no budgetary support will be availed by the CPSE in future.

(c) The proposals are approved by the Board of Directors of the CPSE concerned and have the concurrence of Financial Advisor of the concerned administrative Ministry/Department.

3. All the administrative Ministries/Departments are requested to take note of the above decision and to advise the CPSEs under their administrative control suitably in the matter.

(DPE OM No. 18(1)/2007-GM-GL-80 dated 20th April, 2007)

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