In a significant decision benefiting a section of Government employees, the Government of Jammu & Kashmir has approved a one-time option allowing eligible employees to switch from the National Pension System to the Old Pension Scheme in short NPS to OPS. The decision was notified through Government Order No. 305-F of 2026 dated 28 September 2026. It aims to resolve a long-standing anomaly affecting employees whose recruitment process started before the introduction of NPS but whose appointments were made after NPS came into force.
The announcement has generated considerable interest among Government employees across India with regarding to shifting of NPS to OPS. However, it is important to note that this is not a blanket restoration of OPS. The benefit is available only to a specific category of employees fulfilling the eligibility conditions prescribed in the Government Order.
In this article, we explain the J&K Government’s decision, compare it with the Central Government’s Office Memorandum dated 03 March 2023 with regard to shifting from NPS to OPS, discuss the current status of OPS across different States, and examine the present position of the Central Government.
Why Did the J&K Government Introduce This Option?
The National Pension System became applicable to employees joining the Jammu & Kashmir Government on or after 1 January 2010 through SRO-400 dated 24 December 2009.
Before NPS came into force, several Government departments had already advertised vacancies under the Old Pension Scheme. However, recruitment processes involving examinations, interviews, verification and appointment formalities often took several months.
As a result, many candidates who applied for vacancies advertised under the OPS regime received appointment orders only after 1 January 2010. Since they joined service after NPS became applicable, they were automatically covered under NPS despite the recruitment having commenced before the change in pension policy.
Employees represented that they should not lose pensionary benefits merely because of administrative delays beyond their control. After examining these representations, the Government decided to grant a one-time option to eligible employees.
What Has the Government Decided?
The Government has allowed a one-time option for eligible employees to opt for the Old Pension Scheme instead of continuing under the National Pension System.
The decision does not abolish NPS and does not restore OPS for all Government employees. It only removes a specific anomaly arising from delayed recruitment.
Who Is Eligible?
Broadly, an employee may be eligible if:
- the post or vacancy was advertised before 24 December 2009;
- the employee joined Government service on or after 1 January 2010;
- the employee was covered under NPS because of the delayed appointment; and
- the option is exercised within the time prescribed in the Government Order.
Employees should carefully verify their eligibility with reference to the Government Order before exercising the option.
Illustrative Examples
Eligible
- Advertisement issued: November 2009
- Appointment: February 2010
- Joining: March 2010
Since the recruitment process started before NPS but joining took place after its implementation, such an employee may be eligible.
Not Eligible
- Advertisement issued: April 2010
- Joining: September 2010
Since the recruitment itself commenced after NPS came into force, such an employee would ordinarily continue under NPS.
Central Government Had Granted Similar Relief Earlier
The J&K Government’s decision is based on a principle that had already been recognised by the Government of India.
The Department of Pension & Pensioners’ Welfare (DoPPW) issued Office Memorandum No. 57/05/2021-P&PW(B) dated 03 March 2023, granting a one-time option to a limited category of Central Government employees to be covered under the Central Civil Services (Pension) Rules, 2021 instead of the National Pension System.
Why was the OM issued?
NPS became applicable to Central Government employees joining service on or after 1 January 2004. However, many recruitment notifications had been issued on or before 22 December 2003, when the Old Pension Scheme was still applicable.
Due to delays in recruitment, several candidates were appointed after 1 January 2004 and were automatically covered under NPS. To remove this anomaly, the Central Government granted a one-time option to eligible employees.
Eligibility under the Central Government OM
Broadly, the employee should have:
- been recruited against a post advertised on or before 22 December 2003;
- joined Government service on or after 1 January 2004 under NPS; and
- exercised the option within the prescribed period.
Like the J&K order, the Central Government’s OM did not restore OPS universally. It was confined to a limited category of employees.
J&K Order vs Central Government OM
| Particular | Central Government | Jammu & Kashmir |
| NPS effective from | 1 January 2004 | 1 January 2010 |
| Advertisement cut-off | On or before 22 December 2003 | Before 24 December 2009 |
| Nature of relief | One-time option | One-time option |
| Applicable to | Eligible Central Government employees | Eligible J&K Government employees |
| OPS restored for all employees | No | No |
Both decisions are based on the same principle—employees should not be deprived of pensionary benefits solely because the recruitment process was delayed due to administrative reasons.
State-wise Status of OPS
The approach towards pension reforms varies across India.
States that have restored OPS
The following States have restored the Old Pension Scheme for eligible State Government employees:
- Rajasthan
- Chhattisgarh
- Punjab
- Himachal Pradesh
- Jharkhand
Implementation is subject to the respective State rules. Issues relating to the transfer of NPS corpus from PFRDA continue to remain under discussion in some States.
Andhra Pradesh
Andhra Pradesh has not generally restored OPS. Instead, it has provided a limited one-time option to a specified category of employees under prescribed conditions.
Jammu & Kashmir
Jammu & Kashmir has now introduced a similar one-time option for eligible employees whose recruitment process commenced before 24 December 2009 but who joined service after 1 January 2010.
Other States
Most other States, including Maharashtra, Gujarat, Karnataka, Tamil Nadu, Telangana, Kerala, Odisha, Uttar Pradesh, Bihar and Madhya Pradesh, continue to follow the National Pension System for employees joining service after the notified cut-off dates.
Current Position of the Central Government
The Central Government has not restored the Old Pension Scheme for employees recruited on or after 1 January 2004.
Instead, it has adopted two important measures:
- the DoPPW Office Memorandum dated 03 March 2023, granting a one-time option to eligible employees recruited against pre-NPS advertisements; and
- the Unified Pension Scheme (UPS) for eligible Central Government employees while continuing with a contributory pension framework.
Key Takeaways
- The J&K Government has not restored OPS for all employees.
- The benefit is available only to employees satisfying the eligibility conditions specified in Government Order No. 305-F of 2026.
- The decision follows a principle similar to the Central Government’s DoPPW Office Memorandum dated 03 March 2023.
- Several States have restored OPS, while many others continue with NPS.
- The Central Government continues with NPS/UPS and has not announced any general restoration of OPS.
Conclusion
The Jammu & Kashmir Government’s decision provides a one-time opportunity for a limited category of employees to switch from NPS to OPS, addressing a recruitment-related anomaly caused by administrative delays. It is not a general restoration of the Old Pension Scheme.
The move follows a similar approach adopted by the Central Government through the DoPPW Office Memorandum dated 03 March 2023, while different States have adopted different pension policies based on their administrative and financial considerations.
Government employees should carefully examine the relevant Government Orders and Office Memorandums before assuming eligibility. For authentic updates on pension reforms, service matters, Income Tax and Government notifications, keep visiting Simple Income Tax.
References
- Department of Pension & Pensioners’ Welfare (DoPPW)
- Government Order No. 305-F of 2026 (Finance Department, Government of Jammu & Kashmir). (Ziraat Times)
- DoPPW Office Memorandum No. 57/05/2021-P&PW(B) dated 03.03.2023.
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