In Big Move, Himachal Restores Old Pension Scheme: 10 Points

In a landmark pass that fulfils one in all his party’s key marketing campaign promises, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Friday reversed modifications to the pension programme for authorities personnel.

Here is your 10-factor manual to this story:

1. Before the Himachal Pradesh elections in November, the Congress had promised to repair the so-referred to as Old Pension Scheme (OPS) in its first cupboard meeting – a famous call for that might have an effect on a few 1.36 lakh humans and turned into visible as a key cause for the BJP’s defeat.
2. The order turned into powerful straight away with blessings rolling out Friday, Mr Sukhu instructed reporters, calling it a “Lohri gift” to honour employees who’ve helped withinside the improvement of Himachal Pradesh.
3. “The be counted has been studied intensive and regardless of a few reservations via way of means of finance officers, the problem has been settled and all of the personnel beneathneath the New Pension Scheme might be included beneathneath OPS,” he turned into quoted as announcing via way of means of information organization PTI.
4. The fee to put into effect the OPS for this 12 months might be about ₹ 800 to ₹ 900 crore, which might be offset with measures like a ₹ three hike in Value Added Tax or VAT on diesel, Mr Sukhu stated.
5. The Chief Minister additionally stated the authorities might fulfil its promise of providing ₹ 1,500 in keeping with month to ladies and a panel of ministers has been fashioned “to put together a roadmap inside 30 days”. A committee has additionally been fashioned to execute the promise of making one lakh jobs.
6. He attacked the competition BJP, announcing that the country is beneathneath a debt of ₹ 75,000 crore due to the “monetary mismanagement and wasteful expenditure” via way of means of the preceding authorities. “Hard choices will need to be taken because the authorities can not run beneathneath large debt,” he stated.
7. The Old Pension Scheme were a key call for of many personnel who joined authorities provider from January 1, 2004, and had been included via way of means of a reformed programme that got here to be referred to as the New Pension Scheme (NPS).
8. Before Himachal Pradesh, a reversal to the Old Pension Scheme were introduced via way of means of Rajasthan, Chhattisgarh, Jharkhand and Punjab. While celebrations broke out in numerous regions after Mr Sukhu’s announcement, country BJP leader Suresh Kashyap accused the authorities of deceptive authorities personnel.
9. The new scheme turned into a protracted due extrade due to the fact the OPS, designed after independence, had no investment plan – there has been no corpus for the scheme and the legal responsibility turned into set to develop continuously. Under NPS, authorities team of workers needed to make a contribution part of their revenue for retirement blessings.
10. While beneathneath the antique device personnel with twenty years of provider used to get 50 in keeping with cent in their ultimate drawn revenue as pension, beneathneath the NPS, the authorities and personnel needed to make a contribution 10 and 14 in keeping with cent of the revenue respectively closer to a pension fund.