Amid protests by Himachal employees over pending arrears, bureaucrats advise CM Sukhu to reconsider implementation of OPS

Amid growing protests by employee unions demanding arrears and pending dearness allowance (DA), top bureaucrats in Himachal Pradesh have advised the government to reconsider its decision to implement the Old Pension Scheme (OPS).

Senior officials have reportedly suggested to the Chief Minister’s Office (CMO) that the state’s economic situation could worsen if the government continues with OPS, alongside fulfilling the arrears and DA demands.

The officials have warned that meeting these financial obligations could drain the state’s treasury, making it difficult to pay employee salaries in the future. They argue that the financial burden of the OPS, combined with other liabilities, could push the state’s economy into deeper crisis.

Despite these warnings, Chief Minister Sukhvinder Singh Sukhu is said to be firm on not retracting OPS, citing it as a key election promise and a matter of social security. He is reportedly exploring alternative solutions to manage the financial challenges.

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The state secretariat in Shimla is currently engaged in serious deliberations on this issue. The rising debt burden, the central government’s ceiling on funding for various schemes and budget constraints for developmental projects have prompted the bureaucracy to suggest urgent measures.

According to sources, senior officials are consistently raising the issue with the Chief Minister, urging him to make tough decisions to stabilise the state’s finances.

Officials also pointed out that the central government has imposed several restrictions following the state’s move to reintroduce OPS. Approximately Rs 9,000 crore belonging to National Pension Scheme (NPS) employees is stuck with the central government, further complicating the financial situation.

Additionally, the state has suffered significant damage due to recent natural disasters, and despite requesting Rs 10,000 crore in relief from the central government, the funds have not been granted.