Himachal revises pension arrears order, raises Class-I pension ceiling -

Shimla, Aug 21

Himachal Pradesh Government has revised its order for release of pending pension and family pension arrears to employees who retired between January 1, 2016 and January 31, 2022, raising the maximum pension and family pension limits for Class-I pensioners and removing an earlier provision from the order.

The Finance (Pension) Department issued a corrigendum on August 21, a day after ordering release of a further portion of the arrears. The corrigendum modifies the Office Memorandum issued on August 18 with immediate effect.

Under the revised order, 15 per cent of the pending arrears will be released to Class-I pensioners whose basic pension is between Rs 60,000 and Rs 1,12,050, with Rs 1,12,050 being the revised maximum pension. In the case of family pension, the applicable range has been revised from Rs 40,000 to Rs 67,230, which is the revised maximum family pension.

The arrear release for Class-II and Class-III pensioners remains unchanged. Class-III pensioners will receive 35 per cent of their arrears, covering basic pension up to Rs 40,000 and family pension up to Rs 24,000. Class-II pensioners will receive 15 per cent, covering basic pension up to Rs 50,000 and family pension up to Rs 30,000.

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The government has clarified that after the latest release, cumulative arrears paid will stand at 55 per cent of the total arrears for Class-III pensioners and 35 per cent for Class-I and Class-II pensioners.

A significant change in the corrigendum is the omission of Para-2 of the August 18 Office Memorandum. The government has further provided that where the basic pension or basic family pension of a pensioner in Class-III or Class-II is higher than the ceiling specified in the original table, the Pension Disbursing Authority will release the admissible arrears after obtaining an undertaking from the pensioner to that effect.

The corrigendum also puts responsibility on Pension Disbursing Authorities, including banks, to ensure accurate calculation and payment of the arrears. They have been directed to ensure that arrears in individual cases are drawn and disbursed strictly in accordance with the Finance Department’s memoranda issued on September 17, 2022, March 13, 2024 and August 18, 2026.

The government has also ordered adjustment of interim relief and Dearness Relief instalments already paid against the gross pension and family pension arrears, with only the net amount to be released.

The revised notification comes amid growing pressure on the State Government from employees and pensioners over delayed payment of service-related financial benefits. Several employees have approached the Himachal Pradesh High Court seeking enforcement of their lawful entitlements, while the government has cited financial constraints in implementing court judgments.

In a recent case, the High Court directed the State authorities to decide within 12 weeks a representation filed by Bhupender Singh seeking release of his Dearness Allowance benefits. Justice Ajay Mohan Goel, while disposing of CWP No. 6399 of 2026 on July 28, allowed the petitioner four weeks to submit his representation and directed the competent authority to pass a speaking order within 12 weeks.

According to counsel for the petitioner, Vishva Bhushan, the case concerns the petitioner’s claim for DA benefits. The petitioner has been permitted to pursue the administrative remedy, with liberty to take the matter to its logical conclusion before the court if the grievance is not addressed.

The pension arrears issue has also figured before the Supreme Court, where the State Government reportedly submitted that around Rs 650 crore would be required to implement various High Court judgments concerning employees’ financial and service benefits. The State cited financial constraints, while the apex court questioned the justification for withholding lawful benefits recognised through judicial orders.

The August 21 corrigendum is expected to remove ambiguity in implementation of the arrears order, particularly for pensioners whose pension exceeds the limits initially specified. However, with a substantial portion of the arrears still pending, the State Government continues to face pressure from pensioners and employees as well as judicial scrutiny over timely implementation of their financial entitlements.