Shimla, Feb 11,
After PWD Minister Vikramaditya Singh’s statement on the Unified Pension Scheme (UPS), discussions have intensified in Himachal Pradesh regarding its possible implementation. While the Old Pension Scheme (OPS) was reinstated by the State government, Singh indicated that the potential impacts of UPS might be evaluated in the upcoming cabinet meeting.
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OPS, a key election promise of the Congress-led government, has benefited over 700 employees in the past two years. However, its full implementation remains incomplete in state-owned corporations and boards. Meanwhile, the Central government has urged Himachal Pradesh to consider adopting UPS, though the State government has not yet issued an official response.
The UPS, introduced by the Central government, provides pension benefits based on the length of service and last drawn salary. Reports suggest that if Himachal Pradesh adopts the scheme, it could receive financial assistance of up to ₹1,600 crores annually. Given the state’s financial strain following OPS implementation, experts believe UPS could help regulate pension expenses while also supporting developmental needs.
However, the proposal has been met with skepticism from employee unions. The Himachal Pradesh Employees Federation has outright rejected the move, with its president, Pradeep Thakur, stating that OPS was restored after a long struggle and any attempt to replace it would face strong resistance.
Minister Vikramaditya Singh has assured that the government will weigh the pros and cons of UPS before making any decision. He pointed out that OPS was implemented before UPS was introduced and acknowledged that the central government’s offer is under consideration. He also raised concerns about the ₹9,000 crores owed to Himachal Pradesh by the central government, a matter repeatedly highlighted by Chief Minister Sukhvinder Singh Sukhu. Employee organizations have also demanded the release of these funds, but there has been no response from the Centre.
The UPS debate has taken on a political dimension, particularly following the Delhi Assembly elections. The BJP has leveraged issues such as UPS, the announcement of the 8th Pay Commission, and employee-related incentives to shift the political discourse. This may have put pressure on the Congress, which is reaffirming its commitment to OPS to maintain support among employees and pensioners.
Singh reiterated that when OPS was reinstated, UPS was not an option. Now, with the new scheme in place, the State government will take a well-considered decision in the interest of employees and Himachal Pradesh’s financial stability. He also accused the Centre of politicizing financial matters, stressing that in a federal structure, both the State and Centre have distinct rights.
Following the reinstatement of OPS, Himachal Pradesh stopped receiving central grants that were previously provided under the New Pension Scheme (NPS). Additionally, between 2003 and 2023, ₹9,000 crores in employee contributions under NPS remain with the Centre, which has yet to return these funds to the state.
Though the employee unions argue that this cannot replace OPS, which ensures a secure pension structure. But, as discussions continue, the final outcome of the upcoming cabinet meeting will determine whether the State continues with OPS or considers UPS as an alternative.
