Srinagar, Sep 28: The government has approved a one-time option for eligible government employees covered under the New Pension Scheme (NPS) to switch over to the Defined Pension Scheme, commonly known as the Old Pension Scheme (OPS).

The decision has been issued by the Finance Department, Government of Jammu & Kashmir, through Government Order No. 305-F of 2026, dated September 28, 2026, following approval by the Council of Ministers on September 10, 2026.Politics
As per the order, the benefit will apply to government employees who were appointed against posts or vacancies that had been advertised or notified for recruitment before the notification of the New Pension Scheme under SRO-400 dated December 24, 2009, but who joined government service on or after January 1, 2010 and were subsequently covered under NPS.
The Finance Department stated that the decision follows consideration of representations from J&K government employees and examination of the issue in light of the Government of India’s instructions regarding similar cases.
Under the order, eligible employees will be given one opportunity to exercise their option for coverage under the Old Pension Scheme. The option must be exercised within three months from the date of issuance of the government order.
The order makes it clear that the option, once exercised, will be final. Employees who are eligible but fail to exercise the option within the prescribed three-month period will continue to remain covered under the New Pension Scheme.
The government has also laid down the procedure for processing the cases. Employees will have to submit the prescribed option form to their Drawing and Disbursing Officer (DDO), who will forward it through the concerned administrative authorities for scrutiny and further action.
Once an employee is brought under the Old Pension Scheme, the concerned NPS account will be closed from the first day of the month following the month in which the order for OPS coverage is issued, and the employee will be required to subscribe to the General Provident Fund (GPF).
The government order further provides a mechanism for adjustment of the accumulated amount in the NPS account, including the employee’s contribution, government contribution and the increased value arising from investment appreciation.
The entire exercise, from exercising the option to closure of the NPS account, is required to be completed within 120 days from the date of issuance of the order by the concerned administrative department.