J&K Govt Allows Eligible NPS Employees To Switch To Old Pension Scheme Under One-Time Option

The Jammu and Kashmir government has recently granted a one-time opportunity for eligible National Pension System (NPS) employees to switch to the Old Pension Scheme (OPS). According to a Finance Department order, this provision applies to individuals who were recruited prior to the introduction of the Defined Contribution Pension Scheme in J&K, which took effect on December 24, 2009. However, these employees began working for the government on or after January 1, 2010, leading to their inclusion under the NPS framework.

With the option available, these eligible employees have been provided with a three-month window to submit their requests for moving to the OPS. The deadline for such applications is set for December 28, 2026. Once the decision is finalized, any employee who fails to apply within the stipulated period will continue to be covered under the NPS.

To initiate the transfer process, employees must submit their applications through the Drawing and Disbursing Officer (DDO), who will subsequently forward these requests to the Head of Department or Appointing Authority. Afterward, these applications will be forwarded to the respective Administrative Department for verification of eligibility.

If confirmed, the concerned administrative department will issue an order within a month's time. Following this, the NPS account of the employee will be closed from the first day of the subsequent month, and they will subsequently contribute to the General Provident Fund (GPF).

Furthermore, the new order outlines procedures for managing employee and government contributions, as well as addressing adjustments to the growth of the NPS corpus resulting from investment returns. The entire transition process, from exercising the option to closing the NPS account, must be completed within 120 days post the issuance of the coverage order by the Administrative Department.

Manjeet Singh Patel, President of the All India NPS Employees Federation, believes this move addresses the concerns of employees whose recruitment process commenced prior to the NPS introduction. Patel emphasized that employees who were appointed following older recruitment advertisements should not experience any disadvantages due to subsequent changes. He reiterated that appointments made against old advertisements should, as far as possible, be governed by the rules applicable at the time of advertisement.