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Himachal Pradesh revives old pension scheme option

The Himachal Pradesh government announced on Thursday the reintroduction of the Old Pension Scheme alongside the existing New Pension Scheme for government employees. This decision comes after the Congress party’s victory in the Shimla Municipal Corporation polls, where the party promised to implement the Old Pension Scheme for over 1.36 lakh state employees. According to […]

The Himachal Pradesh government announced on Thursday the reintroduction of the Old Pension Scheme alongside the existing New Pension Scheme for government employees. This decision comes after the Congress party’s victory in the Shimla Municipal Corporation polls, where the party promised to implement the Old Pension Scheme for over 1.36 lakh state employees.
According to the notification, employees will be given a ‘final and irrevocable’ option to choose between the Old Pension Scheme (Central Civil Services (Pension) Rules, 1972) and the New Pension Scheme (National Pension System). Employees must make their decision within 60 days of the notification’s issuance. If an employee fails to select a pension plan within the designated time frame, they will automatically continue under the National Pension System.
Under the Old Pension Scheme, retired government employees are entitled to a monthly pension, typically half of their last drawn salary. The New Pension Scheme, implemented on April 1, 2004, requires employees to contribute a portion of their salary to a pension fund, entitling them to a one-time lump sum payment upon retirement.
The notification also states that contributions from both employees and employers will be deposited as per the Pension Fund Regulatory and Development Authority Regulations until the employee’s retirement.
The revival of the Old Pension Scheme in Himachal Pradesh follows similar actions by other opposition-ruled states, including Punjab, Rajasthan, Chhattisgarh, and Jharkhand, which have also reverted to the old system and abolished the New Pension Scheme.

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