The cost of retaining government employees by two more years appears to be bothering government. With the government's plan to offer VRS and other measures to cut its workforce, it is likely that retirement age could be restored back to 58 years. Different people have interpreted in different ways the previous decision taken about two years extension of service. Uninterrupted debate continued since then, implicitly or explicitly. Indian government has perhaps not yet been able to reconcile its bad decision of increasing the age for retirement.
Every argument is met with strong and forceful counter argument.
In fact extension of service span by two years have made several government officers the big beneficiaries as they could get promotion as well as enhanced pension etc. On the contrary the people who were denied upward mobility by virtue of continuation of service of such officers are to now retire at the age of 58 along with those who have completed 60 years and also had two years of extension. This would create the resentment in targeted retiring lot at the age of 58 and they may almost have half hearted attitude towards the work as if they have been penalized for no fault of theirs. Lowering of retirement age plus VRS if run concurrently, then it is possible to reduce the employment level in the government. Even to process the cases of retired people they will openly ask bribe and no action will be taken on them.