Outstanding pension arrears of retired Class-III employees to become ZERO with release of remaining 30 percent arrears

SHIMLA 23 September, 2026

· Additional 15 percent arrears for Class-I and Class-II pensioners

A Spokesperson of state government today here informed that the state government has ordered the release of the entire balance pension/family pension arrears (30%) to pensioners and family pensioners who retired as Class-III employees between 01.01.2016 and 31.01.2022. With this release, the outstanding pension/family pension arrears of eligible Class-III pensioners and family pensioners will become zero.

The government has also ordered the release of an additional 15% of the total pension/family pension arrears to pensioners and family pensioners who retired as Class-I and Class-II employees between 01.01.2016 and 31.01.2022.

The Spokesperson clarified that the terms and conditions already prescribed in the Office Memorandum dated 18.08.2026, as amended through the Corrigenda dated 21.08.2026 and 11.09.2026, will also apply to the release of these arrears.

He further said that, in view of the present orders, the earlier orders issued vide Office Memorandum dated 21.09.2026 regarding the release of the remaining/balance pension and family pension arrears shall stand withdrawn with effect from the date of their issuance.

The Spokesperson further clarified that the Interim Relief and Dearness Relief instalments already paid shall be adjusted against the gross pension/family pension arrears. Any recoverable excess payment shall also be adjusted and only the net amount payable shall be released.

All Pension Disbursing Authorities, including Public Sector Banks, have been directed to ensure that the admissible arrears are drawn and disbursed along with the pension/family pension for September 2026, payable in October 2026.

He said that the state government has directed all concerned authorities to ensure timely and proper disbursement of the arrears to eligible pensioners and family pensioners.