J&K allows one-time NPS to OPS switch for govt employees: Check eligibility, deadline and rules
The administration of Jammu and Kashmir has permitted certain government employees covered under the National Pension System (NPS) to opt for the Old Pension Scheme (OPS) on a one-time basis. In the same vein, the finance ministry issued a government order on 28 September, with eligible employees permitted to exercise the option until 28 December. Post the date, the option will be closed.
It is also vital to note that the chosen option is final. This means employees who shift to the OPS will not be permitted to return to NPS later. Let us examine the various aspects of the order in detail.
Who can opt for OPS?
This is a concession that is aimed at employees caught between the old pension regime and the introduction of NPS in J&K. To successfully qualify, an employee must have been appointed against a post or vacancy that was advertised or notified before 24 December 2009, but must have actually joined government service on or after 1 January 2010.
J&K first introduced its defined-contribution pension system through Statutory Rules and Order No. 400, i.e., SRO-400 dated 24 December 2009, thus covering employees appointed or brought on the regular establishment from 1 January 2010.
This decision of the J&K administration followed a similar move by the Centre. In March 2023, the Department of Pension and Pensioners’ Welfare permitted a one-time OPS option for specified central government employees whose respective vacancies or posts had been notified before NPS was introduced, but who joined service officially subsequently.
Furthermore, J&K’s Council of Ministers approved the proposal on 10 September 2026. This was followed by the finance department’s order on September 28.
How will the switch work?
All eligible employees should first check the complete details and submit the option through their Drawing and Disbursing Officer (DDO). The official application will then move through the Head of Department (HOD) or appointing authority before being examined by the relevant administrative department.
The department is required to carefully check and scrutinise eligibility. Once the process is complete, the department will make a decision within the prescribed period.
Once the OPS coverage is officially sanctioned, the employee’s NPS account will be closed from the first day of the following month. Then the employee will subsequently come under the ‘General Provident Fund, i.e., GPF rules, with NPS contributions adjusted in accordance with the transition of provisions.
Finally, all eligible employees who do not exercise the option by 28 December 2026 will remain under the NPS coverage. Given that this choice is irreversible, it is wise for eligible employees to carefully consider all the pros and cons of both options.
If in doubt, they should not hesitate to seek guidance from experts. They should also verify their recruitment notification, joining date, and other supporting documents before submitting the option for final review. Complete clarity of the rules, regulations and stipulations is key to making a beneficial decision on a case-by-case basis.
