Kathmandu, Aug. 11: The Federal Civil Service draft bill has been sent back to the Finance Ministry for a fresh assessment after the government moved closer to introducing a provision that would make civil servants eligible for compulsory retirement upon completing 30 years of service or reaching the age of 55, whichever comes first.
The Ministry of Law, Justice and Parliamentary Affairs has asked the Ministry of Federal Affairs and General Administration and the Ministry of Land Management, Cooperatives and Poverty Alleviation to seek fresh consent from the Finance Ministry on the proposal.
The Finance Ministry had previously given its views on most provisions in the draft. However, the proposed 30-year service and 55-year age limits were added later, prompting the government to reassess their financial implications, according to Law Ministry officials.
The proposal has triggered concerns over pension liabilities, the cost of replacing experienced officials and the impact on government services. Former chief secretary Dr Bimal Koirala said reviving a provision that had failed in the past could weaken the concept of a permanent civil service.
Koirala warned that sending large numbers of experienced officials into retirement at once could create gaps in institutional knowledge and administrative leadership while increasing the government’s financial burden.
The government is now considering whether to implement the provision immediately or introduce a transition period. Officials are also examining a phased retirement system based on age and years of service, along with special arrangements for personnel with critical expertise.
The proposal has also raised legal questions over existing service conditions. Under the current Civil Service Act, 2049, civil servants generally retire at 58. Employees who joined the service before November 7, 1992 also have certain legal protections concerning pension and service calculations.
Legal experts say reducing the retirement age or service period could affect rights and benefits employees acquired when they entered government service. Constitutional lawyer Prakash Regmi said any adverse impact on established rights could lead to legal challenges.
He said the government must assess not only retirement and pension but also salary, grade increments, promotion prospects, service periods and other benefits linked to an employee’s final years in service.
Another unresolved issue is the three years of service that employees would lose if retirement shifts from 58 to 55. Earlier discussions included adding some service years for pension calculations, but officials have yet to determine whether that would resolve the wider financial and legal implications.
The government is also considering phased implementation to avoid a sudden exodus of eligible employees. However, lawyers have cautioned that different treatment of employees in similar positions could itself create legal complications.
The Finance Ministry’s fresh assessment is therefore expected to determine the final shape of the controversial provision. The Law Ministry will conduct the final legal review afterward.
Officials are also examining whether the 30 year or 55 year rule should apply uniformly across all civil services, or whether certain services should receive separate arrangements.
People’s News Monitoring Service
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