- pension cum investment scheme by GoI
- also provides tax benefits
- individual account only (no joint accounts)
- for old age security
- regulated by Pension Fund Regulatory and Development Authority (under PFRDA Act 2013)
- National Pension System Trust (NPST) is registered owner of all assets under NPS
- NRI also allowed to open NPS account
Govt Sector NPS
- Central Government
- introduced with effect from Jan 1, 2004 except armed forces
- 14% salary contribution from employee, same from govt
- before Apr 2019, it was 10%
- State Government
- free to adopt NPS (not mandatory yet)
- WB, TN have joined
- Raj, Chhattisgarh walked out
Private Sector NPS
- Corporates: companies may adopt (not mandatory)
- Individuals: if not covered by any above sector, then join NPS on voluntary basis