All pension arrears to be cleared by 2027, dues worth Rs 2,155 crore paid so far: CM

Bilaspur (HP), Dec 17 (PTI) Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Wednesday promised to clear all pension arrears by 2027 and to include effective decisions in the interest of pensioners in the upcoming state budget.

Speaking at the Pensioners' Day function organised by the Himachal Pradesh Pensioners' Joint Front at Ghumarwin in Bilaspur district, Sukhu said the state government has spent Rs 2,155 crore to clear arrears of employees and pensioners.

Stating that the state is facing serious fiscal challenges, he urged the pensioners to support the government's efforts to improve the situation.

Pensioner's Day was an opportunity to honour the services, sacrifices and dedication of those who strengthened the administrative foundations of Himachal Pradesh through honesty, commitment and a strong sense of duty during their service, the chief minister said in a statement, expressing his gratitude to pensioners.

Reiterating his government's commitment to the welfare of employees and pensioners, Sukhu said it restored the Old Pension Scheme (OPS) in its first cabinet meeting after taking charge, despite financial challenges and a Rs 75,000 crore debt burden inherited from the previous BJP government.

The restoration of Old Pension Scheme has provided dignity, security and confidence to 1.36 lakh employees, he said, adding that his government is clearing the huge backlog of salary and pension arrears in a phased and systematic manner.

He said pension and family pension arrears have been fully paid to pensioners aged 75 years and above on a priority basis. The previous government had paid only 20 per cent of the arrears, while the current government cleared the rest 80 per cent, he said.

Similarly, pensioners aged 70-74 years have received 70 per cent of their total arrears, of which 50 per cent was paid by the present government and 20 per cent by the previous government. The remaining 30 per cent will be paid within 40 days, he stated.

Sukhu said pensioners in the 65-70 age group have been paid 38 per cent arrears. Despite a severe financial crunch, the current government paid an additional 18 per cent, worth Rs 75 crore, over the 20 per cent paid by the previous regime, he said.

Pensioners aged below 65 years have been paid 35 per cent arrears, with the government paying an additional 15 per cent, at a cost of Rs 110 crore, over the 20 per cent paid earlier, the chief minister's statement said.

Sukhu added that 20 per cent gratuity arrears have been paid to employees who retired between January 1 and December 31, 2021.

Regarding salary arrears, the chief minister said an instalment of Rs 50,000 has been paid to Class I to III employees and an instalment of Rs 60,000 to Class IV employees, involving an expenditure of Rs 800 crore. An additional Rs 20,000 each was paid to all Class IV employees on October 19, 2024, entailing a cost of Rs 100 crore.

To extend pension benefits to Class IV employees, Sukhu said, the government has granted them the benefit of one year of qualifying service for pension calculation instead of five years of daily-wage service.

As the revenue improves, pending arrears and liabilities of employees and pensioners will be cleared on priority, he promised.

Elaborating on initiatives taken up under the systemic reform agenda, the chief minister said that a policy was being considered to support families displaced by the Bhakra Dam project in Bilaspur.

Criticising the Centre, he said that BJP leaders, including Union Minister Jagat Prakash Nadda, were not presenting the correct figures of financial assistance to Himachal Pradesh and that the state's interests were being neglected.

Himachal Pradesh Pensioners' Joint Front president Atma Ram appreciated the financial benefits extended by the current government and highlighted pending demands of the pensioners. PTI COR BPL RUK RUK