J&K allows one-time NPS to OPS switch for eligible government employees | Personal Finance
Jammu and Kashmir has opened a one-time window for certain government employees to move from the National Pension System (NPS) to the Old Pension Scheme (OPS). The option is aimed at employees whose posts or vacancies were advertised before the UT introduced NPS, but who joined government service only from January 1, 2010 and were therefore brought under NPS.
The Finance Department issued a government order on September 28. Eligible employees have until December 28, 2026 to exercise the option. The choice will be final: an employee who moves to OPS cannot subsequently return to NPS.
Who is eligible to switch from NPS to OPS?
The benefit is not available to every J&K government employee covered by NPS. It applies to those who meet the recruitment-date and joining-date conditions.
An employee must have been appointed against a post or vacancy advertised or notified before December 24, 2009, but must have joined government service on or after January 1, 2010.
The dates matter because J&K notified the introduction of its defined-contribution pension system through SRO-400 on December 24, 2009, for employees appointed or brought on the regular establishment from January 1, 2010.
This created a situation where some recruitment processes had begun under the old pension framework, while the eventual appointment took place after NPS had come into force.
Employees affected by this timing issue had sought similar treatment to a provision introduced by the Centre for certain government employees.
Why has J&K allowed the switch now?
The decision follows a long-running issue over recruitment dates. Some employees argued that their vacancies had been advertised before NPS was introduced, even though their actual appointments happened after the cut-off.
The Centre had addressed a similar issue in 2023. The Department of Pension and Pensioners’ Welfare (DoPPW), through an office memorandum dated March 3, 2023, provided a one-time option for specified Central Government civil employees who were appointed against posts or vacancies advertised or notified before the introduction of NPS but joined service after it came into effect.
However, that Central Government order did not automatically extend to J&K employees. The J&K administration subsequently considered the issue and its Council of Ministers approved the proposal on September 10, 2026. The Finance Department issued the order on September 28.
How can eligible employees apply?
The application has to move through the employee’s official administrative channel.
The employee needs to submit the prescribed option to the Drawing and Disbursing Officer (DDO). The DDO will forward it to the Head of Department or appointing authority, which will then send the case to the concerned administrative department.
The administrative department will examine the employee’s eligibility and issue the necessary order. According to the reported procedure, the department is required to scrutinise the case and take a decision within one month.
Employees should therefore establish that their post or vacancy was advertised or notified before December 24, 2009, rather than relying only on their date of appointment.
What happens to the NPS money?
Switching to OPS will also change the treatment of the employee’s existing NPS account.
Once the OPS coverage is sanctioned, the employee’s NPS account will be closed from the first day of the month following the month in which the OPS order is issued. The employee will then come under the General Provident Fund (GPF).
The accumulated NPS corpus will be adjusted as part of the transition. Reports on the government order indicate that the employee’s contribution will be credited to the employee’s GPF account, with interest recalculated under the applicable GPF rules. The government’s contribution will be dealt with separately under the transition provisions.
This means eligible employees should not treat the option as simply moving from one pension label to another. It also involves closure and adjustment of their existing NPS account.
What if an employee does not apply?
The option is available only for a limited period. Employees who do not exercise it by December 28, 2026 will continue under NPS, according to the government order.
The option is also irreversible once exercised. Therefore, an eligible employee needs to understand the implications of moving from a defined-contribution system such as NPS to the defined-benefit pension framework before submitting the option.
For employees covered by the order, the key issue is therefore not simply the pension scheme they prefer. Their recruitment notification date, actual joining date and documentary proof of eligibility will determine whether they can use this one-time window.
