Jammu Kashmir Govt Allows One-Time Switch From NPS To Old Pension Scheme For Eligible Employees

The Jammu and Kashmir Government has approved a one-time option for a category of employees appointed against posts or vacancies advertised before the introduction of the New Pension Scheme (NPS) in the Union Territory to shift to the Old Pension Scheme (OPS).

The Finance Department, through Government Order No. 305-F of 2026 dated September 28, 2026, said the provision will cover government employees who were appointed against posts or vacancies advertised or notified for recruitment before the notification of the J&K New Pension Scheme through SRO-400 dated December 24, 2009, but joined government service on or after January 1, 2010 and were consequently covered by the NPS.

The decision follows approval by the Council of Ministers through Decision No. 129/11/2026 dated September 10, 2026.

Under the order, eligible employees will have three months from September 28 to exercise the option. The prescribed option form specifically states that it must be submitted on or before December 28, 2026.

The Finance Department said the decision has been taken on the analogy of a 2023 policy of the Government of India that provided a one-time opportunity to certain Central Government employees appointed under the National Pension System despite having been recruited against vacancies notified before the introduction of the NPS.

The J&K order traces the pension policy to the Government of India’s introduction of the Defined Contribution Pension Scheme, or National Pension System, for Central Government employees appointed on or after January 1, 2004, through a notification dated December 22, 2003.

Jammu and Kashmir subsequently replaced the Defined Pension Scheme with the Defined Contribution Pension Scheme for government employees appointed or brought on the regular establishment on or after January 1, 2010. This was done through SRO-400 of 2009 dated December 24, 2009, by amending the J&K Civil Service Regulations, 1956 and incorporating the relevant provisions in Schedule XXIII of Volume-II of the regulations.

The Finance Department said representations were subsequently received from J&K government employees seeking similar treatment to that extended by the Centre to employees whose recruitment process related to vacancies notified before the pension system was introduced.

The matter also reached courts, with employees seeking coverage under the Old Pension Scheme on the basis of the Government of India’s Office Memorandum dated March 3, 2023.

The Government order refers, among others, to T.A. No. 6563/2021, titled Ajay Sharma and Others versus UT of J&K and Others; O.A. No. 1466/2023, titled Mohd. Zaffer versus GAD, UT of J&K and Others; Mohammad Yousuf Wagay versus Others; and T.A. No. 734/2021, titled Adiba Rasool versus State of J&K and Others.

According to the Finance Department, in these matters the courts directed the respondents to consider the applicants’ claims for coverage under the OPS in line with the benefit extended to Central Government employees under the March 3, 2023 Office Memorandum.

The J&K Finance Department had taken up the issue with the Ministry of Home Affairs in October 2024 regarding the applicability of the Central Government’s policy to J&K employees.

The Ministry of Home Affairs, Department of Jammu, Kashmir and Ladakh Affairs, subsequently informed the J&K Government in December 2024 that the matter had been referred to the Department of Pension and Pensioners’ Welfare (DoPPW).

The DoPPW, in its response dated December 6, 2024, clarified that its service-related instructions for Central Government employees were not automatically applicable to employees of States and Union Territories. It said the concerned government or Union Territory administration and its administrative department would have to decide whether such provisions should apply to their employees.

Following this clarification, the proposal was examined by the J&K Finance Department in consultation with the General Administration Department, Department of Law, Justice and Parliamentary Affairs, and ARI & Trainings Department. The departments concurred with the proposal to place the matter before the Council of Ministers.

The Council of Ministers subsequently approved the Finance Department’s proposal on September 10.

Under the new order, an employee eligible for the benefit but failing to exercise the option within the prescribed three-month period will continue under the NPS. The order also makes clear that the option, once exercised, will be final.

Eligible employees have to submit the prescribed option form through their Drawing and Disbursing Officer (DDO), who will forward it to the Head of Department or Appointing Authority. The case will then be sent to the concerned Administrative Department.

The Administrative Department will scrutinise each case and determine whether the employee meets the conditions for coverage under the Old Pension Scheme. It has been directed to issue the necessary order within one month.

Once an employee is brought under the OPS, their NPS account will be closed from the first day of the month following the month in which the order granting OPS coverage is issued. The employee will thereafter subscribe to the General Provident Fund (GPF).

The concerned DDO will initiate the closure of the NPS account through the respective Treasury.

The Government has also prescribed the procedure for dealing with the accumulated NPS corpus. The employee’s contribution is to be adjusted through the prescribed accounting mechanism for credit to the individual’s GPF account, with the account recast to allow applicable interest under the General Provident Fund Rules, 1960.

The Government contribution made under the NPS is to be accounted for as a minus debit under Major Head 2071, relating to pension and other retirement benefits. The increase in the value of the NPS subscription resulting from investment appreciation is to be credited to the Government account under Major Head 0071, contribution towards pension and other retirement benefits, under the specified head of account.

The Finance Department said the accounting and adjustment of the accumulated NPS corpus will be taken up with the Director General, Accounts and Treasuries, J&K, through the respective Head of Department.

The entire process, from the employee exercising the option to closure of the NPS account, is required to be completed within 120 days from the date of issuance of the order by the concerned Administrative Department.

Where there is any doubt about whether a particular post was advertised or an appointment made within the scope of the Government Order, the matter will be referred to the Finance Department. Its decision will be final and binding on all concerned.

The prescribed application form requires employees to provide details including their name, parentage, date of birth, CPIS ID, PRAN number, date of joining government service, department and office, advertisement or notification number and date, selection list details, appointment order, post of appointment, present post and details of promotions.

Applicants are required to attach photocopies of the relevant advertisement or notification, selection list, appointment order and PRAN card, along with an attested copy of the service book.