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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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