Himachal Pradesh to restore old pension scheme for government Employees

The Himachal Pradesh government has decided to fulfill one of its key poll promises by restoring the old pension scheme (OPS) for its employees. The deputy chief minister Mukesh Agnihotri said that a bill to implement the OPS will be tabled in the state assembly in the upcoming budget session.

The OPS was discontinued by the previous Virbhadra Singh government in 2004 and replaced by the National Pension System (NPS), which required the employees to contribute 10% of their salary to a pension fund. The NPS was opposed by many employees who demanded the revival of the OPS, which offered 50% of the last drawn salary as a pension and was fully funded by the government.

The Congress party, which came to power in the state in December 2022, had promised to bring back the OPS in its election manifesto. The chief minister Sukhvinder Singh Sukhu had also announced the plan to restore the OPS in his first cabinet meeting. He claimed that the government had made adequate budgetary provisions to bear the additional burden of the OPS.

However, some experts have raised doubts over the financial viability of the OPS, given the state's high debt burden and low revenue growth. According to an estimate, the state government spent Rs 7,082 crore on pensions in 2021-22, which was 12% higher than the previous year. The revenue receipts of the state in 2021-22 were Rs 9,282 crore, which showed an increase of only 7.41% over the previous year.

The state government has also promised to create one lakh jobs and fill up over 60,000 vacant posts in the government sector. The state has 1.60 lakh working government employees and 1.30 lakh pensioners. The OPS will benefit around 1.36 lakh employees who were contributing to the NPS.

The deputy CM Agnihotri said that the government was committed to providing a transparent and honest administration and fulfilling all its guarantees to the people. He said that the OPS was a long-pending demand of the employees and the government was happy to meet their expectations. He also said that the government will take steps to improve the fiscal health of the state and generate more resources for development.

Renu’s Dhanjal:  Patna, Still Drowning

Patna’s recurring floods echo Phanishwar Nath Renu’s 1975 reportage. Fifty years later, the crisis exposes urban planning failures, drainage gaps and lost lessons.

Niraj Krishna   |  3 days, 13 hours ago

The Price of Profit in Satya Niketan, South Delhi

The Satya Niketan tragedy is not simply a story of one negligent landlord. It raises serious questions about unregulated construction, overcrowded student housing and the failure of civic enforcement in South Delhi.

Dinesh Dubey @ Editorial   |  3 days, 15 hours ago

The Rise of Rogue AI Agents and the Global Rush for Liability Laws

Rogue AI agents are raising new cybersecurity and accountability risks. Why governments need binding liability laws for autonomous AI systems.

Dinesh Dubey @ Editorial   |  4 days, 3 hours ago

NEPAL IN THE GRIP OF WORST FLASH FLOOD DISASTER

Nepal faces a devastating flash flood disaster linked to glacial ice and debris, with hundreds dead, thousands missing and major infrastructure badly damaged.

Alok K.Shrivastava   |  4 days, 4 hours ago

India’s Cities Are Growing Faster Than Their Infrastructure

India’s rapid urbanisation is outpacing infrastructure, governance and planning. Why cities need better housing, mobility, water management and climate resilience.

Ankita Mishra   |  4 days, 4 hours ago

Article 142:  Who Bowed—Power or Democracy?

The withdrawal of protest-related FIRs raises deeper questions about Article 142, public pressure, judicial power, institutional autonomy and the Rule of Law in India.

Niraj Krishna   |  5 days ago

Comments

YOU MIGHT ALSO LIKE

View More

By Niraj Krishna   |   3 days, 13 hours ago
Renu’s Dhanjal:  Patna, Still Drowning
By Alok K.Shrivastava   |   4 days, 4 hours ago
NEPAL IN THE GRIP OF WORST FLASH FLOOD DISASTER
By Ankita Mishra   |   4 days, 4 hours ago
India’s Cities Are Growing Faster Than Their Infrastructure
By Niraj Krishna   |   5 days ago
Article 142:  Who Bowed—Power or Democracy?