Old Pension Scheme in Himachal Pradesh: Latest Update 2026

Himachal Pradesh government restored Old Pension Scheme (OPS) for its employees and the scheme continues to run in the state. On 13 January 2023, Chief Minister Sukhvinder Singh Sukhu reversed the earlier pension programme for government employees, a popular demand to stop the New Pension Scheme (NPS) and bring back the older version of pension in Himachal Pradesh.

OPS was restored from 1 April 2023, benefiting 1.36 lakh employees who no longer face deductions under NPS. A notification for implementation was issued by the Chief Secretary on 17 April 2023. It said contributions of state government employees (employee's and employer's share) covered under NPS would stop from 1 April 2023.

HP Old Pension Scheme Latest Update

In July 2026, the state government took another big decision for its employees. Employees recruited against posts advertised before 15 May 2003 will now be covered under Central Civil Services (Pension) Rules, 1972. Their NPS contributions will be transferred from NPS accounts to their GPF accounts, and they will get interest on this amount at the applicable GPF rates. Retired employees in this category will also get pension from the date of their retirement.

Restoration of OPS was one of the main promises made by Congress in the 2022 assembly polls, and a decision was taken at the first Cabinet meeting on 13 January 2023.

Restoration of Old Pension Scheme in Himachal Pradesh

Here are some of the most notable points regarding restoration of old pension scheme in Himachal Pradesh.

1. Before the Himachal Pradesh assembly elections in November 2022, Congress party had promised to restore the Old Pension Scheme (OPS) in its first cabinet meeting. This was a popular demand that would affect some 1.36 lakh people and was seen as a key reason for the BJP's defeat.
2. The order regarding old pension scheme in Himachal Pradesh was effective immediately, with benefits rolling out from Lohri festival in 2023. CM termed it a "Lohri gift" to honour workers who have helped in the development of Himachal Pradesh.
3. "The matter has been studied in depth and despite some reservations by finance officers, the issue has been settled and all the employees under the New Pension Scheme would be covered under OPS," CM quoted.
4. The cost to implement OPS for that year was about Rs. 800 to Rs. 900 crore, which was offset with measures like a Rs. 3 hike in Value Added Tax or VAT on diesel.
5. CM said the government would also fulfil the promise of providing Rs. 1,500 per month to women. A panel of ministers was formed to prepare a roadmap for the women empowerment scheme within 30 days.
6. A committee was also formed to execute the promise of creating one lakh jobs.
7. CM attacked the opposition (BJP), saying the state is under a debt of Rs. 75,000 crore because of the financial mismanagement and wasteful expenditure by the previous government.
8. "Hard decisions will have to be taken as the government cannot run under huge debt," CM said.
9. The Old Pension Scheme had been a key demand of many employees who joined government service from 1 January 2004 and were covered by a reformed programme that came to be known as the New Pension Scheme (NPS).
10. Before Himachal Pradesh, a reversal to the Old Pension Scheme had been announced by Rajasthan, Chhattisgarh, Jharkhand and Punjab. While celebrations broke out in several areas after Mr Sukhu's announcement, state BJP chief Suresh Kashyap accused the government of misleading government employees.
11. The new scheme was a long due change because OPS, designed after independence, had no funding plan. There was no corpus for the scheme and the liability was set to grow continuously. Under NPS, government staff had to contribute a part of their salary for retirement benefits.
12. While under the old system employees with 20 years of service used to get 50 per cent of their last drawn salary as pension, under NPS the government and employees had to contribute 10 and 14 per cent of the salary respectively towards a pension fund.

Old Pension Scheme in Himachal Pradesh Highlights

Key details of the old pension scheme in Himachal Pradesh are given in the table below.

FAQ's

Is the Old Pension Scheme still running in Himachal Pradesh?

Yes, the Old Pension Scheme continues to run in Himachal Pradesh. It was restored from 1 April 2023 and the state government has kept extending its coverage to more employees.

Who gets the benefit of OPS in Himachal Pradesh?

Government employees who were earlier covered under the New Pension Scheme (NPS) get the benefit of OPS. In July 2026, the state also decided to bring employees recruited against posts advertised before 15 May 2003 under the Central Civil Services (Pension) Rules, 1972.

Source / Reference link: Himachal Pradesh Government Press Release