Jammu, Mar 6: The pension bill of the Jammu and Kashmir government is projected to double over the decade from 2020 to 2030, with around 2.48 lakh retired employees receiving allowances, officials said.
The administration clarified that there is no plan to reinstate the Old Pension Scheme (OPS), noting that doing so would be fiscally unsustainable and could pose serious risks to financial stability.
According to official data, Rs 5,829 crore was disbursed as pension in 2020-21, a figure expected to rise to Rs 11,798 crore by 2030-31. This information was shared in a government reply to a cut motion in the Jammu and Kashmir assembly.
Year-wise pension expenditure has steadily increased over the past five years: 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.
Based on projected retirements, officials expect pension outgo to continue rising in the coming years, peaking at Rs 11,798 crore in 2030-31. They added that the growth in pension commitments may persist until the early 2040s, after which the burden is likely to stabilise as most OPS-covered employees retire.
The introduction of the New Pension Scheme (NPS) in 2010 provides a sustainable pension framework with proper fund management, unlike OPS, which lacked a dedicated pension fund.
Officials noted that Jammu and Kashmir, being an expenditure-led region with modest revenue and limited investment avenues, has experienced disproportionate growth in pension liabilities over the years. Pension expenditure had nearly doubled earlier from Rs 731 crore in 2004-05 to Rs 1,495 crore in 2009-10.
Following a 2009 cabinet decision, the government transitioned from the Defined Benefit Pension Scheme (OPS) to the Defined Contribution Pension Scheme (NPS) for all employees appointed on or after January 1, 2010, through amendments in the J&K Civil Service Regulations.
While honoring commitments to eligible OPS pensioners, the government maintains that developmental allocations and projects are not adversely affected. Once pension expenditure stabilizes around 2040, a proportionately larger share of funds is expected to be available for development initiatives. (Agency)
