However the announcement is of little consequence to the General Insurance Corporation and its subsidiaries where, according to the existing norms, officials who joined before 1973 can serve upto 60. Of course, for those who joined after 1973, it will meantwo more years on the job.

As per the banking industry norms, the new retirement age will be applicable to officials who joined the industry after 1969. According to the Pillai committee report of 1979, all staff who joined before 1969 can continue till they are 60. However, chairmen and executive directors of the banking industry can continue upto the age of 60.

If the government were to fix the cut off date for retirement on June 1, LIC's chairman G Krishnamurthy, who was to retire by end-June, will now continue for another two years. According to observers, there will now be a "whole lot of new permutations and combinations" in the appointment of LIC's two new managing directors as four to five executive directors who were not in the race will now join the fray. The cabinet on Tuesday raised the retirement age of central goverment employees from 58 to 60 years benefiting immediately about 3 million employees nationwide. The government is expected to save about Rs 5,200 crore annually.