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.

Democracy in the Shadows: Institutional Manipulation and the Global Decline of Right-Wing Rule ​

An analysis of the global political shift away from right-wing rule, India's electoral controversies, economic discontent, and the growing role of opposition movements.

Dr. K Ranjan Sharma   |  5 hours ago

Nvidia CEO Entangled in Chinese Espionage Allegations Ahead of Trump-Xi Summit

Espionage allegations involving Nvidia CEO Jensen Huang expose the growing intelligence rivalry between the US and China ahead of the Trump-Xi summit.

Dinesh Dubey   |  7 hours ago

When a City Cannot See Its Runway, It Has a Governance Problem

Deepavali celebrations in Chennai brought more than festive lights. Heavy smoke disrupted flights, affected a tennis final and raised serious questions about air quality monitoring, pollution control and public health.

Auritro Banerjee   |  8 hours ago

Sharda Sinha: The Voice That Made Chhath Eternal

Remembering Sharda Sinha, Bihar's beloved Nightingale, whose timeless Chhath songs, folk music and soulful voice continue to unite generations and preserve India's cultural heritage.

Prof Atif Rabbani   |  8 hours ago

Delhi’s Diwali: A Festival of Lights, a Failure of Civic Sense

Delhi's Diwali pollution exposes a deeper civic crisis as firecracker violations, toxic air and weak enforcement threaten public health and the rule of law.

Dr. Niraj Krishna   |  1 day, 8 hours ago

Revived Diplomacy, Deep Divides: Why a Breakthrough in Ukraine Remains Out of Reach

Renewed US-Ukraine-Russia talks in Abu Dhabi offer hope for peace, but territorial disputes, security guarantees and European divisions threaten progress.

DINESH DUBEY   |  1 day, 9 hours ago

Comments

YOU MIGHT ALSO LIKE

View More