Class-III pensioners to get 30% of arrears, while Class-I and II pensioners will receive 15%; government also orders clearance of pending medical claims
Shimla : Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu has announced a phased payment of long-pending pension arrears, saying Class-III pensioners will receive 30% of their arrears in October, while Class-I and Class-II pensioners will receive 15%.
The payments will apply to pensioners who retired between January 1, 2016 and December 31, 2022, according to the announcement made during a meeting between the Chief Minister and the Himachal Pradesh Pensioners’ Joint Front in Shimla on Monday.
The announcement comes against the backdrop of continuing demands from retired government employees for settlement of arrears and other financial benefits. The government has said it is releasing liabilities in phases, taking into account the state’s financial position.
Sukhu said the government was aware of the difficulties faced by pensioners and employees and was working to address their outstanding issues. He also said the government was considering releasing another instalment of Dearness Allowance in the coming period.
The Chief Minister directed all departments to clear pending medical reimbursement claims of pensioners. He said arrears due to pensioners above 65 years of age had already been cleared.
The latest announcement is part of a wider process of settling pension-related liabilities. The state Finance Department has also issued orders this year concerning payment of pension and family pension arrears to employees who retired after the implementation of the revised pay structure.
Government links pension payments to financial constraints
During the meeting, Sukhu also used the opportunity to explain the financial pressures facing Himachal Pradesh.
He said that when the Congress government took office, the state had a debt burden of around Rs 76,000 crore, besides liabilities of about Rs 10,000 crore towards employees and pensioners. These figures were presented by the Chief Minister and were part of his criticism of the previous BJP government.
Sukhu also raised the issue of the Revenue Deficit Grant, which Himachal Pradesh had received for decades. He said the discontinuation of the grant following the recommendations of the 16th Finance Commission had created a major financial challenge for the state.
According to the Chief Minister, Himachal Pradesh is facing an annual revenue gap of between Rs 8,000 crore and Rs 10,000 crore because of the loss of the grant. He described the Revenue Deficit Grant not simply as a benefit to the state government but as an important financial support for the people of Himachal Pradesh.
The Chief Minister also compared the financial support received by the state under the previous and present governments. He said the previous BJP government received around Rs 54,000 crore in Revenue Deficit Grant and Rs 16,000 crore in GST compensation during its five-year tenure.
Sukhu claimed that greater financial discipline during that period could have reduced the state’s debt by around Rs 30,000 crore and helped clear employee-related liabilities. He also criticised the construction of government buildings worth about Rs 1,000 crore, saying many of them were lying vacant.
By comparison, he said, the present Congress government had received around Rs 17,000 crore in Revenue Deficit Grant during its first three years and was pursuing what he described as a policy of financial discipline.
These remarks represent the state government’s assessment of the financial position inherited from the previous administration and its explanation for the phased settlement of employee and pensioner liabilities.
Old Pension Scheme and pensioners’ role
Sukhu also reiterated the Congress government’s decision to restore the Old Pension Scheme for state employees. He said the decision was aimed at ensuring financial security and dignity for employees after retirement.
He described pensioners as an important part of Himachal Pradesh’s development, saying their contribution to the state’s administration and public institutions continued to have an impact even after retirement.
The meeting also focused on the practical problems faced by pensioners, particularly delays in reimbursement of medical expenses. The government’s direction to departments to clear such claims is significant for retired employees who depend on reimbursement for healthcare-related expenditure.
The Pensioners’ Joint Front welcomed the government’s measures. Its president, Atma Ram Sharma, thanked the Chief Minister for steps taken for pensioners and raised issues concerning the retired workforce.
For thousands of pensioners, however, the immediate focus will be on the actual release of the announced arrears in October. The government’s decision provides a defined schedule for another tranche of payments, while the larger question of when the remaining liabilities will be settled continues to depend on the state’s financial position and availability of resources.
The meeting therefore highlighted the difficult balance confronting Himachal Pradesh: pensioners are seeking payment of financial dues accumulated over years, while the state government is simultaneously dealing with high debt, reduced central fiscal support and continuing expenditure commitments.
For pensioners waiting for their dues, the October payment will provide partial relief. But the broader issue of clearing the remaining arrears remains a continuing financial and administrative challenge for the state.
