Monday, February 15, 2010

Retirement worries

10% of officials to retire by April 2010

Some 10 per cent of government officials in Kerala are retiring by April 2010. The Achuthanandan government has declared that from now onwards government officials will retire in a specific month that is April. The step has been taken to address the problem arising in the state Public Service Commission (PSC) and Accountant General’s office following the retirement of its senior officials.

However, the PSC has been accused of not filling vacancies that would lay vacant after the retirement of a large number of its staff. The government, already on unsound financial footing, will have to raise Rs 1600 crore for disbursing retirement benefits to its some 21,000 staff, who will be retiring by the end of April this year.

The government will be forced to present an election-oriented populist budget with an eye on the forthcoming local body elections. The big question is: From where will state finance minister Thomas Isaac get funds? The ruling CPI(M) has already given green signal to its offices for using funds under various welfare boards under their control. The government can ask the boards to remit the funds deposited in various banks to state treasury.

Withdrawing huge amount of more than Rs 3000 crore deposit by these boards from their deposits may cause problems to banks. The PSC is yet to start work to replace such large number of vacancies by new appointments. And it is not easy to replace the experienced hands with fresh ones. The most important thing is that the AG’s office is working overtime to clear the pension papers of the employees who are going to retire this year. There are fears that half of the employees will not get pension in time. Sociologists say this will have a debilitating impact on lives of elderly. However, the government is doing its best to make sure that these people get their dues on time.

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Source :
IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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