Jammu, March 6, 2026 : The Jammu and Kashmir government’s pension expenditure is projected to nearly double over the decade from 2020 to 2030, prompting officials to reiterate that reviving the Old Pension Scheme (OPS) is not under consideration due to concerns over long-term financial sustainability.
According to official data presented in the J&K Assembly, the pension bill for retired government employees stood at Rs 5,829 crore in 2020-21 and is projected to rise to Rs 11,798 crore by 2030-31. Currently, around 2.48 lakh retired employees are receiving pension and related allowances from the government.
The data also indicates a steady rise in pension expenditure over the last five years. The government paid Rs 6,668 crore in 2021-22, Rs 7,463 crore in 2022-23, Rs 8,364 crore in 2023-24, Rs 9,350 crore in 2024-25, and Rs 9,127 crore in 2025-26 toward pension liabilities.
Officials said that the pension outgo is expected to continue increasing in the coming years due to the rising number of retirements. However, they noted that the financial burden is likely to stabilise by the early 2040s, once a majority of employees covered under OPS retire from service.
The administration emphasized that bringing back OPS would be fiscally unsustainable and could pose serious risks to the region’s financial stability. Officials pointed out that the National Pension System (NPS), introduced in 2010, offers a more sustainable framework through a defined contribution model with a dedicated pension fund, unlike OPS which is a defined benefit system funded directly from government revenues.
They also highlighted that Jammu and Kashmir, being largely an expenditure-driven region with limited revenue generation and investment avenues, has historically witnessed rapid growth in pension liabilities.
Earlier trends show that pension spending had already nearly doubled in the past—from Rs 731 crore in 2004-05 to Rs 1,495 crore in 2009-10.
Following a 2009 cabinet decision, the government amended the J&K Civil Service Regulations to shift from the OPS to NPS for all government employees appointed on or after January 1, 2010.
Officials said the administration remains committed to fulfilling pension obligations to existing beneficiaries under OPS, while also ensuring that developmental spending and public welfare programmes are not adversely affected.
They added that once pension liabilities stabilise around 2040, more financial resources are expected to be available for developmental activities in the Union Territory.
