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Option 1 states that the mass retirement follows the Kerala government`s move to allow employees retiring any day during the year to work till March 31. From this statement, it can be inferred that the mass retirement was a result of the new policy that allowed employees to retire on March 31. Therefore, option 1 is correct.
Option 2 states that in a recent bid to reduce burden on the state exchequer, the Government of Kerala reduced the retirement age of government employees from 59 to 58 years. This statement indicates that the reduction in retirement age could have contributed to the mass retirement. Therefore, option 2 is correct.
Option 3 states that more than 50% of those retired were from the Education department. This statement provides additional information about the specific department from which a large number of employees retired. Therefore, option 3 is correct.
Based on the analysis, options 1, 2, and 3 are all correct statements. Therefore, the correct answer is option 2.