THIRUVANANTHAPURAM: The Kerala government has frozen the decision to raise the pension age to 60 in Public Sector Undertakings (PSU). The cabinet meeting decided that no further action should be taken in this regard. The new move comes after strong opposition, including from the ruling party.

On October 29, the Finance Department issued an order raising the pension age of the employees of 122 public sector undertakings and six financial corporations in the state from 58 to 60. There are about one and a half lakh employees here.

The pension age has been increased in large PSUs except KSEB, KSRTC and Water Authority. It was informed that in these three institutes, the pension age of 56 years will be increased to 60 after three months of study.

The new rule was applicable to those who were to retire from October 29. The panel of department secretaries headed by the Additional Chief Secretary of Finance had recommended to the government to fully implement the report of the expert committee appointed by the government to study the unification of service and wage conditions in public sector undertakings. The Cabinet meeting on April 20, fearing the wrath of job-seeking youth, approved the report excluding KSEB, KSRTC and the Water Authority.