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HP govt extending old pension scheme to all employees: Dy CM

HP govt extending old pension scheme to all employees: Dy CM

Shimla, Mar 22 (UNI) The Himachal Pradesh government has announced that it will extend the benefits of the Old Pension Scheme (OPS) to all state employees, as those employees who are currently not covered under this scheme would be brought under it in the time to come.
Deputy Chief Minister Mukesh Agnihotri, replying to a query raised by BJP member Satpal Singh Satti, stated that around 117,522 employees of the state and all the Himachal Road Transport Corporation (HRTC) employees have opted for the OPS, which would come into effect once they retire.
The state government has been pressing the central government to release a sum of Rs 5000 crore, which had been deposited by the state for pension funds but is currently withheld.
Agnihotri clarified that employees who had earlier opted for the New Pension Scheme (NPS) but are now choosing the OPS would need to deposit the amounts released by the central government back into the state treasury. He added that the state is working to get the central government to release the deposited funds to facilitate the transition to OPS.
' Under the NPS, the state government had contributed 50 percent of the pension funds, while the remaining 50 percent came from the employees and the central government. However, Agnihotri explained that the central government has used the deposited amount for bond investments, which has created a financial conundrum. To align with OPS, the government maintains that the amounts should be redirected back to the state, as employees who have now opted for the Old Pension Scheme must contribute their share to the state government directly.
The deputy chief minister also pointed out that the central government not only withheld Rs 9,242 crore that was meant for both the state and its employees but also reduced the state’s borrowing limit by Rs 1,700 crore. Despite these challenges, the state is providing OPS benefits to employees who have deposited the necessary amounts with the state treasury.
The state government’s efforts to resolve the pension-related financial issues and ensure fair benefits for all employees, especially those opting for the Old Pension Scheme, continue as part of a broader push to secure employees' welfare after retirement, the deputy CM stated in the house.
UNI ML ARN

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