Jammu Tawi, Feb 18: Jammu & Kashmir Government on Wednesday ruled out any proposal to revive the Old Pension Scheme (OPS) for its employees.
In a written reply to a cut motion submitted by Peoples Conference MLA Sajad Gani Lone, the Minister in-charge of Finance informed the Legislative Assembly that there is no proposal to revive OPS, stating that the transition to the New Pension Scheme (NPS) was a conscious decision aimed at balancing fiscal sustainability with social security for government employees.
“The introduction of the New Pension Scheme in 2004 by the Government of India, subsequently adopted by States and Union Territories, was a conscious decision aimed at safeguarding fiscal sustainability while ensuring post-retirement social security to government employees,” the reply reads.
The Minister added that the government has consistently followed a policy of adopting employee welfare measures introduced by the Government of India, with the objective of maintaining parity and uniformity in service benefits for employees.
Defending the shift to NPS, the Minister said that the growing pension bill posed a serious challenge to the State’s financial stability.
“The Jammu and Kashmir, being an expenditure-led state with limited avenues for investment, modest revenue receipts, and growing pension liabilities, faced a serious challenge. Pension liabilities had expanded disproportionately, with pension expenditure doubling from Rs 731 crore in 2004–05 to Rs 1495 crore. It was observed that continuation of the defined pension scheme (OPS) would be fiscally unsustainable in the long run and could pose significant risks to the State’s financial stability,” the reply stated.
The New Pension Scheme was approved by the NC–Congress cabinet in 2009 and became applicable to all employees appointed on or after January 1, 2010.
J&K pays pensions for former Ladakh legislators
Jammu Tawi, Feb 18: The Jammu & Kashmir Government on Wednesday said it continues to pay pensions to former legislators elected from areas now part of the Union Territory of Ladakh, citing provisions of the Jammu and Kashmir Reorganisation Act, 2019 and directives issued by the Ministry of Home Affairs (MHA).
In a written reply to a cut motion moved by Peoples Conference MLA Sajad Gani Lone regarding the reasons for payment of pensions to former MLAs from Ladakh, the Minister in-charge of Parliamentary Affairs stated: “The continuation of pensions for former legislators from Ladakh is in accordance with the Jammu and Kashmir Reorganisation Act, 2019 and instructions issued by the Ministry of Home Affairs.”
The Ministry’s written reply explained that the payment of pensions should be viewed in the context of transitional safeguards provided under the Reorganisation Act. “Prior to reorganisation, the members elected from Ladakh were part of the single Legislative Assembly/Legislative Council of the undivided State. Their tenure was governed by the laws in force at that time, and the pension earned by them is a legal right upon completion of the prescribed term,” the reply noted.
The reply states that Section 95 of the Reorganisation Act provides for the continuation of existing laws in the successor Union Territories until amended or repealed. “There is no provision in the Act that restrains or withdraws pensionary benefits already earned. Further, Section 87 provides for distribution of assets and liabilities of the erstwhile State between the two Union Territories, which includes financial obligations such as pensions. The pension for former legislators is not a fresh benefit but a continuation of a lawful entitlement earned prior to reorganisation, subject to final financial adjustment between the successor Union Territories as determined by the Central Government,” the reply stated.
The Minister clarified that there is no legal provision applicable to Ladakh for payment of pensions to former lawmakers. “Since the pensions were authorized under the Jammu and Kashmir State Legislature Members’ Pension Act, 1984 (as applicable to the UT of J&K), and there exists no enabling provision for the UT of Ladakh to disburse such pensions (the Act having been repealed in its application to Ladakh), the liability continued to rest with the UT of Jammu and Kashmir,” the reply said.
The Ministry further added that the MHA also clarified these pensions should be dealt with by the J&K Legislative Assembly. “The Office of the Principal Chief Controller of Accounts, Ministry of Home Affairs, also clarified that these pensions should be handled by the Secretariat/DDO of the J&K Legislative Assembly,” the Ministry said, adding that the Finance Department concurred with this view on November 24, 2021, and the approval was eventually approved by the Lieutenant Governor.
