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National Pension System (NPS)

In News 

  • Union Finance Minister Nirmala Sitharaman said ,The money in the National Pension Scheme (NPS) belongs to the people and as per law, can’t go back to state governments.

National Pension System (NPS)

  • It is being administered and regulated by Pension Fund Regulatory and Development Authority (PFRDA) set up under PFRDA Act, 2013.
  • It is a market linked, defined contribution product. 
  • Under NPS, a unique Permanent Retirement Account Number (PRAN) is generated and maintained by the Central Recordkeeping Agency (CRA) for individual subscribers.
  • On exit/retirement/superannuation, a minimum of 40% of the corpus is mandatorily utilised to procure a pension for life by purchasing an annuity from a life insurance company and the balance corpus is paid as lumpsum.
  • Features : It is mandatorily applicable on Central Government employees (except Armed Forces) recruited on or after 01.01.2004. 
    • Subsequently, all State Governments excluding West Bengal have also adopted NPS for their employees. 
    •  Companies can adopt NPS for their employees with contribution rates as per the employment conditions.
    •  The All Citizens Model of the NPS allows all citizens of India aged between

 

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