Pension Arrears relief in October, Full settlement still unclear
Class-III pensioners to get 30% arrears, Class-I & II 15% in October
Pension Arrears relief in October, Full settlement still unclear
Shimla, Sept 21
Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has announced a partial release of long-pending pension arrears, with Class-III pensioners set to receive 30 per cent of their arrears and Class-I and Class-II pensioners 15 per cent in October
The benefit will be available to pensioners who retired between January 1, 2016 and December 31, 2022, according to a statement issued by the state government, stated a media release by the State government.
Sukhu made the announcement while presiding over a meeting with the Himachal Pradesh Pensioners’ Joint Front. He said the government was aware of the issues being faced by pensioners and employees and was making efforts to address their pending financial concerns.
The Chief Minister also said the government was considering releasing another instalment of Dearness Allowance (DA) in the coming period. He directed departments to clear pending medical reimbursement claims of pensioners and said arrears of pensioners above 65 years of age had already been cleared.
Here it is pertinent to mention that the phased release of pension arrears comes amid mounting fiscal pressure on Himachal, where a substantial share of revenue is already committed to salaries, pensions and subsidies and the state’s fiscal deficit has breached prescribed limits.
Pension arrears remain a major issue
The payment announced for October comes against the backdrop of long-pending financial benefits arising from the revision of pay and pension following the implementation of the revised pay scales. Pensioners’ organisations in Himachal Pradesh have repeatedly raised demands for payment of outstanding arrears, restoration of benefits and clearance of pending medical reimbursement claims. The state government’s latest announcement provides for only a specified portion of the arrears to be released at this stage, with the remaining amount continuing to be payable.
Also read: Himachal’s fiscal deficit breaches prescribed limits; 86 pc revenue spent on salaries, pensions, subsidies
Sukhu, meanwhile, linked the government’s financial constraints to the state’s overall fiscal position. He claimed that when the Congress government assumed office, Himachal had a debt burden of around Rs 76,000 crore along with liabilities of about Rs 10,000 crore towards employees and pensioners.
He also criticised the previous BJP government over its handling of state finances, claiming that it had received Rs 54,000 crore as Revenue Deficit Grant (RDG) and Rs 16,000 crore as GST compensation during its five-year tenure.
Sukhu said Himachal had been receiving RDG since 1952, but the 16th Finance Commission had discontinued the grant, which he described as a major financial setback for the state. He claimed the state was losing Rs 8,000 crore to Rs 10,000 crore annually following the discontinuation.
The Chief Minister said the present government had received around Rs 17,000 crore as RDG during its first three years and was working towards improving financial discipline and making the state self-reliant.
Noteworthy that the Pensioners’ Joint Front has been pressing the government on pending financial benefits, including arrears and medical reimbursement claims. The October announcement therefore addresses part of the long-standing demand but leaves the larger question of the timeline for payment of the remaining arrears open.
Sukhu also reiterated that the Congress government had restored the Old Pension Scheme for state employees, saying the move was aimed at providing financial security and dignity after retirement.
President of the Himachal Pradesh Pensioners’ Joint Front Atma Ram Sharma thanked the Chief Minister for steps taken by the government in the interest of pensioners.
Office-bearers of the Joint Front and a large number of pensioners were present at the meeting.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
