*Govt says defined pension scheme fiscally unsustainable; transition to NPS ensures parity with national policy*
Jammu, Feb 18: Jammu & Kashmir Government on Wednesday ruled out any proposal to revive the old pension scheme (OPS) for government employees.
Responding to a cut motion of Peoples Conference MLA Sajad Gani Lone, the Finance Minister, in a written reply, said that there is no proposal to revive the old pension scheme, stating that the shift to NPS was a conscious decision aimed at balancing fiscal sustainability with social security for government employees.
“The introduction of new pension scheme in 2004 by Government of India and 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, “reads the reply.
The Minister further said government of Jammu & Kashmir has consistently followed a policy of adopting employees welfare measures introduced by Government of India with a view to maintain parity and uniformity of service benefit to employees.
He further said that growing pension bill posed a serious challenge to state’s financial stability.
“The Jammu and Kashmir being an expenditure-led state with limited avenues for investment, modest revenues receipts and growing pension liability posed a serious a serious challenge. Pension liabilities of Jammu and Kashmir had expanded disproportionately with pension doubling from Rs 731 crore in 2004-05 to Rs 1495 crore. It was noted that the continuation of the defined pension scheme (OPS) will be fiscally unsustainable in the longer run and could pose significant risk to the State’s financial stability,” the minister’s reply said.
The transition to NPS was implemented for all government employees appointed after January 1, 2010—(KNO)
