National Pension System

Background : Govt. has been looking after the Pension of its employees and because of this, its financial burden was increasing by leaps and bounds.

So, GoI launched this retirement scheme on 1st Jan, 2004
This scheme moves from a defined benefit pension to defined contribution based benefit pension system.


Regulator : Pension Fund regulatory and development Authority (PFRDA) set up in 2003 by an executive order. Constitutional amendment bill to give PFRDA statutory status was passed in 2013.

Salient Features of the bill : 

• Statutory status
• Name change of New Pension System to National Pension System
• mandatory for all central govt employees joined after jan 2004
• each subscriber will have a pension account and a fund manager to choose from. Both are portable.
• extended to other citizens after May 2009
• allowed FDI limit is 26%

More -
1. http://en.wikipedia.org/wiki/National_Pension_Scheme
2. http://articles.economictimes.indiatimes.com/2011-12-29/news/30568962_1_nps-trust-fund-managers-national-pension-system
3. http://articles.economictimes.indiatimes.com/2011-08-25/news/29927190_1_nps-subscribers-fund-managers-returns
5. http://www.thehindu.com/news/national/parliament-passes-key-pension-bill-after-10year-delay/article5100899.ece
6. http://www.prsindia.org/billtrack/the-pension-fund-regulatory-and-development-authority-bill-2011-1600/
7. http://www.telegraphindia.com/1131028/jsp/business/story_17502380.jsp#.U0osP62SzGx