The central government has once again offered the Himachal Pradesh government to implement the Unified Pension Scheme (UPS), offering financial assistance of Rs 1,600 crore if the scheme is adopted. This is the second time that the Centre has written to the state regarding the matter after its previous proposal was rejected.
After coming to power, the Congress-led government under Chief Minister Sukhvinder Singh Sukhu reinstated the Old Pension Scheme (OPS) in Himachal Pradesh, benefiting 1.36 lakh employees. However, this move led to financial restrictions imposed by the central government, including a reduction in the state’s borrowing limit to Rs 6,600 crore. Additionally, externally aided projects were capped at Rs 2,900 crore over three years, whereas there was no such restriction earlier.
A major financial contention between the state and Centre remains the Rs 9,000 crore stuck with the Union government after employees transitioned from the New Pension Scheme (NPS) to OPS. Despite these financial constraints, the Himachal Pradesh government has remained resolute in its decision to continue with OPS, arguing that the old pension system ensures financial security for government employees in their retirement years.
