What is the Contributory Pension System (CPS) for employees recruited on or after 15.5.2003?
Ans. The Contributory Pension Scheme has been introduced by the H.P.State Government for its new appointees appointed on or after 15.5.2003. Under the new pension system, each new state government employee is allotted a unique 16 digit Permanent Pension Account Number by the Accountant General Himachal Pradesh on receipt of application from the Head of Departments/Head of office in prescribed form. It shall be mandatory for all the new employees to become members of the scheme. Each employee shall be required to pay a monthly contribution equal to 10% of Basic pay, plus Dearness Pay (w.e.f 1.4.2004) plus Interim Relief (w.e.f. 1.11.2006 & 1.10.2008), and Dearness Allowance sanctioned by the Govt. from time to time and Non Practicing Allowance, every month. A matching contribution equal to employee contribution is made by the State Government every month for each employee who contributes to the scheme.
