The Union law ministry has sent a note to the Cabinet recommending reduction in the retirement age of central government employees from 60 to 58, according to an official.
The proposal will be discussed at a Cabinet meeting in a few days, the official said.
He said that to put the plan into action, the government would need at least Rs 6,500 crore to pay off the retiring beneficiaries.
It was during Arun Jaitley's tenure as law minister in the National Democratic Alliance government that the note was prepared, the official said.
It was the NDA itself that had increased the retirement age from 58 to 60. Later it felt that the move was blocking employment avenues for young people.
But since the general election was approaching, the official said, senior ministers did not think it was wise to revert to the old system, especially because the Bharatiya Janata Party's 'India Shining' campaign was in the pipeline.
The Congress-led United Progressive Alliance government now wants to decrease the retirement age.
Prime Minister Manmohan Singh feels that all ministries must give a good account of themselves with by emphasising on productivity and accountability.
For instance, the official said, railway gangmen inspect 8 km of tracks every day. They have to carry heavy equipment like instruments to tighten fishplate screws.
It is found that gangmen nearing 60 can barely walk that distance.
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