Wajahat Shabir
SRINAGAR: The Jammu and Kashmir Government has approved a one-time option allowing eligible government employees covered under the National Pension System (NPS) to switch to the Old Pension Scheme (OPS), extending relief to employees whose appointments were made against vacancies advertised before the introduction of the New Pension Scheme in the Union Territory.
The Finance Department issued Government Order No. 305-F of 2026 on September 28, implementing a decision taken by the Council of Ministers on September 10, 2026.
The order applies to employees appointed against posts or vacancies advertised or notified for recruitment before the issuance of SRO-400 dated December 24, 2009, which introduced the Defined Contribution Pension Scheme in Jammu and Kashmir, but who ultimately joined government service on or after January 1, 2010 and were brought under NPS.
The decision follows a series of representations from employees seeking parity with a Government of India provision issued in March 2023, which granted a similar one-time option to eligible Central Government employees. The Finance Department said the proposal was examined in consultation with the General Administration Department, Law Department and ARI and Trainings Department before receiving Cabinet approval.
The order also notes that several J&K employees had approached courts seeking coverage under the Old Pension Scheme, citing the Central Government’s policy. Among the cases referred to are petitions filed before the Central Administrative Tribunal, including those by Ajay Sharma, Mohd Zaffer and Mohammad Yousuf Wagay, where courts had directed authorities to consider their claims.
According to the order, eligible employees must exercise the option within three months from the date of issuance of the government order. Employees who fail to exercise the option within the stipulated period will continue under the National Pension System, while those who opt for the Old Pension Scheme will not be allowed to revise their decision later.
The government has prescribed an application form as Annexure-A, which employees must submit through their Drawing and Disbursing Officer to the Head of Department and the concerned administrative department for scrutiny and approval. Departments have been directed to determine eligibility and issue necessary orders within one month.
Once an employee is brought under the Old Pension Scheme, the NPS account will be closed from the first day of the month following the issuance of the coverage order, and the employee will be required to subscribe to the General Provident Fund (GPF). The concerned DDO will initiate the closure of the NPS account through the Treasury.
The order further lays down the accounting procedure for transferring employee contributions to GPF, adjusting the government’s NPS contribution through prescribed accounting heads and crediting investment appreciation to government accounts. The Director General, Accounts and Treasuries has been tasked with overseeing the adjustment of the accumulated NPS corpus through the respective departments.
The Finance Department has directed that the entire process—from exercising the option to closing the NPS account—must be completed within 120 days from the issuance of the coverage order by the concerned administrative department.
Employees intending to switch to the Old Pension Scheme have been asked to submit their option forms on or before December 28, 2026, along with supporting documents, including the original advertisement notification, selection list, appointment order, PRAN details and attested service book extracts.
