Mr Mahsoub, of the moderate Islamist Wasat party, is the second minister to resign this week.
BBC: Egypt opposition leaders face 'incitement' probe
The bill, presented to parliament by the Islamist al-Wasat party, is expected to drop the retirement age to 60 from 70.
NPR: Egypt's Opposing Parties Argue Over Judiciary
Atef Awad, a member of al-Wasat party, told the private ONTV station that judges should be treated like all other public officials, expected to retire at 60.
Another unsuccessful contender was the New Wasat or Centre Party.
ECONOMIST: Democracy can sometimes be too tame
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