Surinder Sharma
Jammu: In a major setback for government employees in Jammu and Kashmir, the administration has made it clear that the Old Pension Scheme (OPS) will not be reinstated. The government has categorically denied any plans to restore OPS, citing serious financial limitations.
Officials stated that the Union Territory’s financial resources are already under strain, and implementing OPS would not be fiscally sustainable under the current circumstances.
The Old Pension Scheme (OPS) was a retirement benefit system for government employees that guaranteed a fixed pension for life after retirement. However, the Government of India discontinued OPS from January 1, 2004, replacing it with the National Pension System (NPS), a contributory pension model.
In recent years, some states have announced the restoration of OPS, including Rajasthan, Himachal Pradesh, and Punjab, reigniting the debate over pension reforms across the country.
Meanwhile, the central government has recently approved the Unified Pension Scheme (UPS), which is set to come into effect from April 1, 2025. Under UPS, employees will be entitled to receive 50 percent of their average basic salary from the last 12 months as pension after retirement.
The announcement is likely to spark reactions among employee unions and add to the ongoing discussion on pension reforms in the region.
