Jammu, Mar 6: Pension expenditure of the Jammu and Kashmir government is expected to nearly double between 2020 and 2030, with around 2.48 lakh retired employees currently receiving pensions and allowances, officials said.
The administration has clarified that there is no proposal to revive the Old Pension Scheme. Officials said bringing back OPS would create heavy financial pressure and could threaten long-term fiscal stability.
Official figures show the government spent Rs 5,829 crore on pensions in 2020–21. This amount is projected to increase to about Rs 11,798 crore by 2030–31. The information came in a government reply to a cut motion in the Jammu and Kashmir Assembly.
Pension spending has steadily increased in recent years.
2021–22: Rs 6,668 crore
2022–23: Rs 7,463 crore
2023–24: Rs 8,364 crore
2024–25: Rs 9,350 crore
2025–26: Rs 9,127 crore
Officials said pension liabilities will continue to rise as more employees retire. The burden may grow until the early 2040s. After that period it is expected to stabilize as most employees under the Old Pension Scheme retire.
The government said the New Pension Scheme introduced in 2010 provides a more sustainable system because it works on a contribution-based model with dedicated funds. OPS does not have a separate pension fund.
Officials also said Jammu and Kashmir has limited revenue sources and depends heavily on government spending. This has increased pension liabilities over time.
Earlier, pension expenditure had almost doubled from Rs 731 crore in 2004–05 to Rs 1,495 crore in 2009–10.
Following a cabinet decision in 2009, the government replaced OPS with the New Pension Scheme for employees appointed on or after January 1, 2010, through amendments in the J&K Civil Service Regulations.
Officials said the government will continue to meet its commitments to pensioners under OPS while ensuring that development spending remains unaffected. Once pension expenditure stabilizes around 2040, more funds may become available for development projects.Source: PTI
- Total pensioners in J&K: Around 2.48 lakh
- Pension spending in 2020–21: ₹5,829 crore
- Projected spending by 2030–31: ₹11,798 crore
- New Pension Scheme introduced: 2010
The rising pension bill will increase pressure on government finances. Officials believe the New Pension Scheme will help control long term pension liabilities while ensuring financial stability for the region.
1. How many retired employees are receiving pensions in Jammu and Kashmir?
Answer: About 2.48 lakh.
2. How much pension expenditure was recorded in 2020–21?
Answer: ₹5,829 crore.
3. What is the projected pension expenditure by 2030–31?
Answer: ₹11,798 crore.
4. Which pension system replaced OPS in J&K in 2010?
Answer: New Pension Scheme (NPS).
5. Why did officials say OPS is not sustainable?
Answer: It has no dedicated pension fund and may create long term financial pressure.
