J&K allows eligible employees to switch from NPS to OPS; option open till Dec 28, 2026

The Jammu and Kashmir administration has opened a one-time window for certain government employees to switch from the National Pension System (NPS) to the Old Pension Scheme (OPS). The move covers employees whose posts or vacancies were advertised before NPS was introduced in the Union Territory, but who joined government service on or after January 1, 2010.

The Finance Department issued the government order on September 28, 2026, giving eligible employees until December 28, 2026, to exercise the option. Once exercised and approved, the choice will be final. Employees switching to OPS will not be permitted to return to NPS.

Who is eligible?

The option is not available to all J&K government employees covered by NPS. It applies specifically to employees appointed against a post or vacancy that had been advertised or notified before December 24, 2009, but whose actual appointment took place on or after January 1, 2010.

The dates are significant because J&K introduced its defined-contribution pension system through SRO-400 on December 24, 2009. The system applied to employees appointed or brought onto the regular establishment from January 1, 2010.

This created a situation in which some recruitment processes had begun under the earlier pension framework, while appointments were completed after NPS came into effect.

Why has J&K introduced the option?

The decision follows representations from employees affected by the transition. They had argued that their vacancies were advertised before NPS was introduced, even though they joined government service later.

The Centre had addressed a similar issue in 2023. Through an Office Memorandum dated March 3, 2023, the Department of Pension and Pensioners' Welfare provided a one-time option to specified Central Government civil employees appointed against posts or vacancies advertised or notified before NPS was introduced but who joined service after its implementation.

That order did not automatically cover J&K employees. The Union Territory subsequently considered the matter, with its Council of Ministers approving the proposal on September 10, 2026. The Finance Department issued the formal order on September 28.

How can employees apply?

Eligible employees must submit the prescribed option through their administrative channel. The application will first go to the Drawing and Disbursing Officer (DDO), who will forward it to the Head of Department or appointing authority. The case will then be sent to the concerned administrative department for scrutiny and a decision.

Employees will need documentary evidence establishing that their post or vacancy was advertised or notified before December 24, 2009.

What happens to existing NPS savings?

Once OPS coverage is sanctioned, the employee's NPS account will be closed from the first day of the month following issuance of the OPS order. The employee will thereafter come under the General Provident Fund (GPF).

Under the transition provisions, the accumulated NPS corpus will be adjusted, with the employee's contribution credited to the GPF account and interest recalculated according to applicable GPF rules. The government's contribution will be dealt with separately under the prescribed provisions.

Employees who do not exercise the option by December 28, 2026, will remain under NPS. Given the final and irreversible nature of the choice, eligible employees will need to assess the financial implications before submitting their option.