J&K pension bill likely to double by 2030

Jammu, Mar 6: The pension bill of the Jammu and Kashmir government is projected to nearly double over the decade between 2020 and 2030, with officials stating that the revival of the Old Pension Scheme is not under consideration as it would be fiscally unsustainable.
According to official data placed before the Jammu and Kashmir assembly in response to a cut motion, around 2.48 lakh retired government employees are currently receiving pension and related allowances from the administration.
The government said pension expenditure stood at Rs 5,829 crore in 2020–21 and is projected to rise to about Rs 11,798 crore by 2030–31.
Officials said the pension outgo has shown a steady increase over the past several years. The expenditure stood at 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 of government employees, authorities said the pension burden is expected to continue rising in the coming years before stabilising in the early 2040s.
Officials said the government currently has no proposal to revive the Old Pension Scheme, asserting that it could create significant fiscal pressure on the Union Territory’s finances.
They said the New Pension Scheme introduced in 2010 offers a more sustainable pension framework through a defined contribution system and structured fund management, unlike the Old Pension Scheme which does not operate through a dedicated pension fund.
Officials noted that Jammu and Kashmir, being an expenditure driven region with limited revenue resources and investment avenues, has historically faced rising pension liabilities.
They said pension expenditure had earlier nearly doubled from Rs 731 crore in 2004–05 to Rs 1,495 crore in 2009–10.
Following a cabinet decision in 2009, the government transitioned from the defined benefit Old Pension Scheme to the defined contribution New Pension Scheme for employees appointed on or after January 1, 2010 through amendments to the Jammu and Kashmir Civil Service Regulations.
Officials said the government continues to honour its commitments to existing pensioners under the Old Pension Scheme while ensuring that developmental allocations and government programmes are not adversely affected.
They added that once pension liabilities begin to stabilise around 2040, a larger share of government funds is expected to become available for developmental activities. [KNT]