Srinagar, Feb 18 — The Jammu and Kashmir Government on Wednesday said it has no plan to restore the Old Pension Scheme (OPS) for its employees, citing long-term fiscal constraints and rising pension liabilities.
In a written reply to a cut motion moved by Sajad Lone, the Finance Minister said the transition to the National Pension System (NPS) was a conscious policy decision. “The shift was made to strike a balance between post-retirement social security and long-term fiscal sustainability,” the minister stated.
The reply said the NPS, introduced by the Government of India in 2004 and subsequently adopted by states and Union Territories, was designed to contain mounting pension expenditure while ensuring uniform service benefits across cadres.
Describing Jammu and Kashmir as an expenditure-driven region with limited revenue streams, the government warned that pension liabilities have increased sharply over the years, posing risks to financial stability. “Continuation of the defined-benefit OPS would not be fiscally sustainable in the long run,” the reply said.
Official figures submitted to the Assembly showed that pension expenditure rose from ₹731 crore in 2004–05 to ₹1,495 crore, reinforcing the government’s assessment.
The government also clarified that the NPS applies to all employees appointed on or after January 1, 2010.