Sukhu govt notifies rules for restoring Old Pension Scheme

SHIMLA: Ending the long wait of its 1.36 lakh employees, the Himachal Pradesh government issued the standard operating procedure (SOP) for the implementation of the Old Pension Scheme (OPS).

An office memorandum to this effect was issued by chief secretary Prabodh Saxena on Thursday evening.

The Sukhvinder Singh Sukhu government had decided to implement the OPS at its first cabinet meeting in March. The decision, one of the 10 guarantees promised by the Congress in its manifesto, will put a burden of ₹1,000 crore on the state exchequer during the financial year 2023-24.

The employees, who wish to remain under the National Pension System, and those who want to be covered under the Central Civil Services (Pension) Rules, 1975, also called OPS, shall have to exercise an option in writing within 60 days from the date of issuance of the SOP.

The contributions — employer’s and employees’ share — for those opting for NPS shall be continued to be deposited according to the Pension Fund Regulatory and Development Authority Regulation.

Employees opting for OPS shall also be covered under the General Provident Fund (Central Service) Rules, 1960.

“Option once exercised, whether NPS or OPS, shall be final and irrevocable. If an employee fails to exercise an option within the stipulated period, it shall be deemed that he/she wishes to be continued under the National Pension System,” states the memorandum.

Employees, who were covered under NPS and have already retired or died, between May 15, 2003, and March 31, 2023, and who fulfil the eligibility criteria under the Central Civil Services (Pension) Rules, 1972, such retired employees and eligible family member of the deceased employee, shall be entitled to pension from the prospective date i.e. with effect from April 1, 2023, on exercising an option.

The employees covered under NPS and opting for OPS shall also furnish an undertaking for adjustment of the government contribution and dividend earned thereon, from the gratuity, leave encashment/GIS, if they fail to deposit such amount to the government account.

If the employee who opted for OPS fails to deposit the government contribution and dividend earned thereon, to the government account, and the said amount is also not possible to be adjusted completely against the payment of gratuity/leave encashment, GIS, such an employee shall not be entitled to any pension. The procedure to regulate the benefits under the General Provident Fund (Central Service) Rules, 1960, shall be the same as applicable to the employees appointed on or before May 15, 2003, and these rules will be followed for the employees appointed on or after the said date who have opted for OPS.

The state government had stopped depositing the contribution under NPS from April this year and now it has been decided that contribution of those who opt for NPS shall be continued to be deposited with the National Securities Depository Limited (NSDL).