The Government of Himachal Pradesh vide Notification No. LSG-B(1) - 1/79-III dated 26th June, 1992 has declared that the sanctioned permanent posts in Municipal Corporation Shimla and in all Municipal Committees/ Notified area in Himachal Pradesh are pensionable w.e.f 01..4.1992 and also declare that pension sanctioning procedure and other caudal formalities are being decided in due course.

Provisions to grant pension to Municipal employees has been made in the section 14 of Himachal Pradesh Municipal Services Act, 1994 and section 306 of Himachal Pradesh Municipal Act, 1994. According to which, an officer or official in regular employment of the municipality may in lieu of Contributory Provident Fund benefits admissible to him under Provident Fund Act 1925 opt for the service and family pension and in that event he will be governed by the rules as are applicable to the employees of the State Government and such a person shall contribute to the General Provident Fund.

Keeping in view of the above Acts, Government of Himachal Pradesh has notified the Himachal Prades Municipality Employees (Pension, Gratuity and General Provident Fund) Rules-2000 vide Notification No. LSG-B(1)-1/79-III dated 24.04.2000 published in the Rajpatra on dated 03.05.2000.