SRC opposes push to lower retirement age

SRC opposes push to lower retirement age

SRC opposes push to lower retirement age

Based on the constitutional guidelines, mandatory retirement age for public servants and teachers is tagged as 60 years as those abled differently retire at 65 years.

Even with this, recently parliament  received a legislative proposal to have the statutory retirement age lowered to 55 years for all the workers.

The movers of the proposal insist that the aim of reduction of retirement age is to give more young people opportunities to get jobs as well as  grow in the service professionally.

However, the proposal has been received with a different view from SRC chairperson Lyn Mengich .

Speaking on this matter, Mengich says that the country’s mandatory retirement age should remain at 60 years.

The SRC boss argued that lowering the retirement age would force the country taxpayers to carry a higher pension liability, which means that there would be more people on pension demanding payments.

Addressing the matter on Spice FM, Mengich said that the country needs to look at common trend worldwide so as to benchmark .

The matter arise following proposal on Public Service Commission(Amendment) Bill, 2023 that is seeking to reduce the retirement age to 55 years.

She noted that there are even other  countries where there is no retirement age. She further said that if people retire at 55 years,  it means that they are pensionable at 55  years and in the state, these are people who are still productive and effectively contribute growth of the economy. The SRC CEO argued too that it would be quite impractical to remove productive employees at a fairly young age since they still possess wonderful experience that spearheads the workforce in the state.

The government revised the retirement age from 55 to 60 years back in the year 2009 thus  provided five more years for all individuals who are abled differently across the public service.

The reason given for the review/ raising of the retirement age at this time was that the government was struggling with a huge pension bill since several people had retired from service.

With such opposition from (SRC) the body that determines the salary that teachers and public servants get, the proposal on revision of retirement age may not see the light of the day.

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