Jammu Kashmir Employees to Stay Under NPS, OPS Revival Ruled Out | Kashmir Life

SRINAGAR: The Jammu and Kashmir Government on Wednesday said it has no plan to restore the Old Pension Scheme (OPS) for government employees.

In a written reply to a cut motion moved by Sajad Lone, the Finance Minister stated that the shift to the National Pension System (NPS) was a deliberate policy choice intended to balance long-term fiscal sustainability with post-retirement social security.

The reply noted that the NPS, introduced by the Government of India in 2004 and later adopted by states and Union Territories, was implemented to contain rising pension liabilities while ensuring uniform service benefits. It added that Jammu and Kashmir, described as an expenditure-driven region with limited revenue streams, faces mounting pension obligations that pose risks to financial stability.

According to official figures, pension expenditure rose from Rs 731 crore in 2004–05 to Rs 1,495 crore, with authorities concluding that continuation of the defined-benefit OPS would be fiscally unsustainable in the long term.

The government also clarified that the NPS applies to all employees appointed on or after 1 January 2010.