Shimla, Feb. 13 -- Amid dwindling fiscal health and recommendations from the finance department, the state government has decided that the Old Pension Scheme (OPS) will not be stopped.

In a high-level presentation on February 8, the department recommended a switch to the Centre's Unified Pension Scheme (UPS) to prevent a total collapse of the state's treasury. Adopting the UPS, a hybrid under the New Pension Scheme (NPS) framework, is seen as the only key to lifting Centre-imposed restrictions on an additional Rs.1,800 crore in borrowings.

The cabinet meeting chaired by Himachal chief minister Sukhvinder Singh Sukhu on Thursday decided to continue the Old Pension Scheme (OPS) for 1,35,000 employees.

Announcing the cabinet decision, Ind...