The Finance Department, through government order, has allowed employees whose recruitment was linked to posts or vacancies advertised or notified before J&K introduced the NPS in December 2009, but who joined government service on or after January 1, 2010, to seek coverage under the old pension framework.
The option is therefore not available to all J&K government employees currently covered by NPS. It is specifically meant for employees whose recruitment process relates to vacancies that pre-date the introduction of NPS.
Who is eligible?
The order covers government employees who meet the prescribed conditions, including:
- The post or vacancy against which they were appointed was advertised or notified before December 24, 2009, when J&K notified the NPS through SRO-400.
- They joined government service on or after January 1, 2010.
- They were covered by NPS because of the date on which they joined service.
The government order follows the approach adopted by the Centre in 2023 for a similar category of employees and takes into account representations and directions from courts and tribunals.
What is the deadline?
Eligible employees have a three-month window from the date of the order to exercise the option.
For the September 28 order, the prescribed deadline is December 28, 2026.
The choice is final. An eligible employee who does not exercise the option within the stipulated period will continue to remain covered under NPS.
How does the switch work?
The employee has to submit the prescribed Annexure-A option form through the Drawing and Disbursing Officer (DDO). The application is then forwarded to the Head of Department/Appointing Authority and the concerned Administrative Department.
The authorities will examine the employee’s eligibility before issuing an order allowing coverage under the old pension framework.
This means merely submitting the option does not by itself result in an automatic switch from NPS to OPS; the employee’s eligibility has to be verified and the coverage order issued by the competent authority.
What happens to the NPS account?
Once coverage under the old pension framework is approved, the employee’s NPS account is to be closed from the first month following the month in which the relevant order is issued.
The employee will then begin subscribing to the General Provident Fund (GPF).
The government order also specifies how the money accumulated in the NPS account is to be accounted for. The employee’s own contributions are to be credited to the GPF account along with applicable interest, while the government’s contributions and investment appreciation are to be dealt with through the specified government accounting heads.
The order requires the entire process, including closure of the NPS account, to be completed within 120 days of the Administrative Department’s order granting coverage.
What employees need to check
For employees considering the option, the key issue is whether their appointment can be traced to a post or vacancy advertised or notified before December 24, 2009.
They would need to establish their eligibility through the relevant recruitment and service records. The order’s three-month deadline also means employees who believe they qualify will need to exercise the option within the prescribed window rather than wait for the process to reopen later.
The move provides a specific route to the old pension framework for this category of employees, but it does not amount to a blanket restoration of OPS for all J&K government employees covered by NPS.