The Cabinet has cleared a proposal giving free hand to state governments to fix the retirement age of teachers in institutes for higher education run by them.

This decision has also paved the way for release of arrears due to teachers of state government-funded colleges and universities following implementation of the Sixth Pay Commission.

The move will come as a big relief to around four lakh lecturers across the country. Earlier, the Centre was insisting that states should enhance the lecturers' retirement to 65 years to enable them to get 80% of the arrears burden of state governments.