Prospect had hoped the Green Paper would be the catalyst for the government to adopt the union’s long held objective of a flexible decade of retirement, while at the same time providing an opportunity to build up better pension provision.

But the proposal to raise the retirement age to 65 reinforces Prospect’s view that departments and agencies that refuse to allow staff to work after their current retiring age should immediately withdraw their objection. At present 25% of the civil service still has to retire at 60. Prospect believes all civil service departments and agencies should move to a common age 65 retirement policy instead of waiting until the last moment allowed by the EU directive on age discrimination.

Prospect General Secretary Paul Noon said: "The Green Paper is a missed opportunity that leaves government trailing in the wake of modern working patterns instead of leading by example. The Green Paper should allow the civil service to develop a flexible decade of retirement from age 55, whilst protecting current staff who still wish to retire on a pension at age 60.

"Compulsory retirement at 60 within the civil service should be confined to the dustbin of history - not kept alive on a life support machine for another four years.

"However, we welcome the undertakings and reassurances given to develop new arrangements in discussion with the Cabinet Office, whilst at the same time protecting the current civil service final salary schemes and improving benefits for staff where possible."

But Noon added: "What is disappointing about the Green Paper is that it does nothing to protect millions of workers in final salary schemes which are facing cutbacks or closure throughout the private sector. The government can do little about the fall in stock market values – but it could do a lot to change the accounting standard which has contributed to so many companies opting for money purchase schemes."

Notes:Prospect represents 105,000 scientists, engineers and specialists, half of whom work in civil service departments and agencies. Customs and Excise, the Ministry of Defence and the Senior Civil Service all have a compulsory retirement age of 60. Most other departments have moved to retirement at 65.