20 Common FAQs on NPS(National Pension System)
20 Common FAQs on NPS(National Pension System) National Pension System (NPS) is a Voluntary Defined Contribution Pension System, initiated by Government of India. It is also called as ‘New Pension Scheme’ as the Government decided to stop the Defined Benefit Pension system and started this NPS for all its employees who had joined after January 1st, 2004. At the early stage, this new system launched only for the Government Employees under the Govt. of India, and then it was opened for all Citizens of India. The NPS is nothing but, a pension cum investment scheme, where a little contribution made by the Employees and Employers like a Provident fund in a NPS account and it’s just planned for the long term retirement fund. The derived amount of contribution from both the employees and employers would be invested in a market based fund and returns were also depending upon the market and deliver in the retirement stage. The NPS is regulated by the Pension Fund Regulatory and Development A