Shimla: The Himachal Pradesh government is caught in a crucial debate over its pension policy as it considers implementing the Unified Pension Scheme (UPS) instead of the Old Pension Scheme (OPS). With bureaucratic deliberations underway, the matter is set to be discussed in an upcoming cabinet meeting, raising concerns over employee benefits and the state’s financial burden.
After coming to power, the Congress-led government had reinstated OPS, fulfilling one of its key election promises. However, its implementation remains incomplete in several state corporations and boards. At the time of OPS implementation, UPS was not in existence. Recently, the Central Government sent a letter urging Himachal to adopt UPS, but the state has yet to respond.
Public Works Minister Vikramaditya Singh stated that the cabinet would thoroughly examine the advantages and drawbacks of UPS for employees while assessing its financial impact on the state. “When OPS was implemented, UPS did not exist. Now that the Centre has introduced it, we will deliberate on its provisions and make an informed decision,” Singh said. He stressed that the government aims to balance employee welfare with fiscal responsibility.
He also highlighted the ongoing issue of Rs 9,600 crore in New Pension Scheme (NPS) funds, which remain with the Central Government. Continuous correspondence has been ongoing to secure its release, and Singh urged the Centre to refrain from politicizing the matter.
UPS, a Central Government scheme, offers pensions to government employees based on their service tenure and last drawn salary. If adopted, Himachal Pradesh would receive an annual financial assistance of Rs 1,600 crore from the Centre. The final decision will be taken after detailed cabinet deliberations, determining the future course of the state’s pension framework.
