The state government of Kerala is aiming to increase the retirement age in the state services from 56 to 60 but it is facing stiff opposition from various opposition parties.
State's finance Minister K M Mani said that the state's financial condition requires raining of the retirement age as payout of retirement benefits and pension makes up a huge burden on the state treasury. He was replying to the debate on Appropriation Bill in the State Assembly.
The state services have about 5.3 lakh employees while the number of pensioners was over 5 lakh. He said that paying for pension and retirement commitments makes for a huge part of the state's expenditure. He also said that the state has the highest life expectancy in the country but on the other hand Kerala state services had the lowest retirement in the country.
The government is also planning to implement a compulsory pension scheme in the country soon. He has assured that the government will hold discussions with all youth parties before implement any new decision. The UDF government had earlier raised the retirement age from 55 to 56 years in the state.