Due to the changing relationship between civil servants and the nation, as well as the influences of political and economic transformation, government reform and new approaches to public management, the retirement and indemnity system of civil servants should be adjusted. Reforming the retirement and indemnity system for civil servants will involve the context wherein these servants who follow the laws and affirm their administrative responsibilities, shall have their basic life demands guaranteed and receive good care in order to protect their basic needs and maintain their respectful esteem after retiring. As well, proper introduction of new blood can then promote administrative efficiency. The retirement care system will not only be concerned with civil servants' career planning, but also impact on the quality of the labor supply; therefore, it cannot be neglected in any complete consideration.Transformation of all systems shall correspond to the social trends and adhere to the essence of 'gradual change'. The reform will be associated with employing the human resources of public services, the social security system, the financial arrangements of the government, the application of the Civil Servants Pension Fund, and the performances and the calculation of the number of working years of civil servants. The granting of pensions shall depend on a very accurate statistical process, which will not be generally discussed. The study explores the frame, function, theory, and improvement of the retirement and indemnity system, and proposes strategic and principal suggestions targeting retirement income rationalization for future references in all fields.Keyword: civil servants, retirement and indemnity, supply and demand of human resources in public services, new public management , personnel function, performance reward, esteem, gradual reform