Cabinet can also discuss increase in retirement age

The state government may raise the minimum service required for employees to draw pension to 25 years. This is one of the major recommendations made by the Cabinet Sub-committee on Resource Mobilisation headed by Deputy Chief Minister Mukesh Agnihotri. The Cabinet can discuss the contentious issue pertaining to the necessary amendment to the pension rules at its next meeting. The pension liability of the government following the restoration of the old pension scheme has risen tremendously and the state is at present not in a position to bear this additional expenditure.

The other issue of raising the retirement age of employees by one year from 58 years to 59 years can also be discussed at the Cabinet meeting along with the assessment of its impact on the unemployed youth. In the past also, the Virbhadra Singh government had raised the retirement age of its employees by one year to postpone the payment of retirement benefits.

At present, all state government employees, who have completed 10 years of regular service, are entitled to pension benefit. The decision to increase this service period to 25 years can deprive many employees of the benefit of both old pension scheme (OPS) or new pension scheme (NPS).

The Cabinet Sub-committee on Resource Mobilisation has recommended that considering the financial health of the state and the debt burden crossing Rs 1 lakh crore, the Cabinet will decide as to which decisions can be taken.

About the decisions pertaining to government employees, it has been recommended that they should be stopped from availing of commutation of pension. At present, any employee, who has retired, can take 40 per cent of the total pension amount and if this practice is to be stopped, an amendment to the Pension Rules will be required. The state government is fully authorised to do so though the employees will challenge its decision in the court of law.

Another recommendation of the Cabinet sub-committee is that the 20-year time period, which is mandatory for availing of full pension, should be raised to 25 years. Besides, pension will be given to employees with less than 25 years, as per their service period.