{"id":2278,"date":"2025-04-07T18:19:19","date_gmt":"2025-04-07T12:49:19","guid":{"rendered":"https:\/\/theiashub.com\/upsc\/?p=2278"},"modified":"2025-10-28T13:08:55","modified_gmt":"2025-10-28T07:38:55","slug":"national-pension-system-nps","status":"publish","type":"post","link":"https:\/\/theiashub.com\/upsc\/national-pension-system-nps\/","title":{"rendered":"National Pension System (NPS): Features, Benefits, Eligibility and Challenges"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-flat ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<label class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/label>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #127abf;color:#127abf\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #127abf;color:#127abf\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/theiashub.com\/upsc\/national-pension-system-nps\/#Full_Form_of_NPS\" >Full Form of NPS<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/theiashub.com\/upsc\/national-pension-system-nps\/#Purpose_of_Introducing_the_National_Pension_System\" >Purpose of Introducing the National Pension System<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/theiashub.com\/upsc\/national-pension-system-nps\/#Eligibility_Criteria_for_NPS\" >Eligibility Criteria for NPS<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/theiashub.com\/upsc\/national-pension-system-nps\/#Advantages_of_the_National_Pension_System\" >Advantages of the National Pension System<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/theiashub.com\/upsc\/national-pension-system-nps\/#Challenges_of_the_NPS\" >Challenges of the NPS<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/theiashub.com\/upsc\/national-pension-system-nps\/#NPS_VS_UPS\" >NPS VS UPS<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/theiashub.com\/upsc\/national-pension-system-nps\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/theiashub.com\/upsc\/national-pension-system-nps\/#National_Pension_System_FAQs\" >National Pension System FAQs<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><b>National Pension System (NPS)<\/b><span style=\"font-weight: 400;\">, launched by the Government of India in 2004, is a voluntary, long-term retirement savings scheme designed to provide financial security during retirement. Initially introduced for government employees, it was extended to all citizens in 2009.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><b>National Pension System (NPS)<\/b><span style=\"font-weight: 400;\"> operates on a defined contribution basis, meaning the retirement benefits depend on the contributions made and the returns generated from those investments. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), the NPS offers transparency and security in fund management.\u200b<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Full_Form_of_NPS\"><\/span><b>Full Form of NPS<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The acronym NPS stands for the National Pension System. It was established to encourage individuals to invest in a pension account at regular intervals during their employment. After retirement, subscribers can withdraw a part of the corpus in a lump sum and use the remaining amount to buy an annuity, ensuring a regular income post-retirement.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Purpose_of_Introducing_the_National_Pension_System\"><\/span><b>Purpose of Introducing the National Pension System<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">NPS was introduced to reform the pension sector in India and to provide a sustainable solution to the increasing pension liabilities of the government. The previous system, known as the Old Pension Scheme (OPS), was a defined benefit plan that posed significant financial challenges due to its unfunded nature. With a growing population and increased life expectancy, the OPS became financially unsustainable. The NPS addresses these issues by promoting individual savings and reducing the fiscal burden on the government.\u200b<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_NPS\"><\/span><b>Eligibility Criteria for NPS<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Initially, the NPS was mandatory for new government employees (except armed forces personnel) who joined service after January 1, 2004. In 2009, it was opened to all Indian citizens, including those in the private and unorganized sectors, as well as non-resident Indians (NRIs), aged between 18 and 60 years. This broad eligibility makes the NPS an inclusive retirement savings option for a large segment of the population.\u200b<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Advantages_of_the_National_Pension_System\"><\/span><b>Advantages of the National Pension System<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The NPS offers several benefits to its subscribers:\u200b<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Portability:<\/b><span style=\"font-weight: 400;\"> The NPS account remains the same regardless of changes in employment or location, facilitating continuity and ease of access.\u200b<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Flexibility:<\/b><span style=\"font-weight: 400;\"> Subscribers have the option to choose their investment preferences and adjust contributions according to their financial capabilities.\u200b<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tax Benefits:<\/b><span style=\"font-weight: 400;\"> Contributions to the NPS are eligible for tax deductions under various sections of the Income Tax Act, making it a tax-efficient retirement planning tool.\u200b<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Regulated Framework:<\/b><span style=\"font-weight: 400;\"> Managed by the PFRDA, the NPS ensures transparent investment norms and regular monitoring of fund managers, safeguarding the interests of subscribers.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Challenges_of_the_NPS\"><\/span><b>Challenges of the NPS<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Despite its advantages, the NPS encounters certain challenges:\u200b<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Awareness and Understanding:<\/b><span style=\"font-weight: 400;\"> A significant portion of the population lacks comprehensive knowledge about the NPS, leading to lower participation rates.\u200b<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Investment Choices:<\/b><span style=\"font-weight: 400;\"> The array of investment options can be overwhelming for some individuals, making it difficult to make informed decisions.\u200b<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Market Risks:<\/b><span style=\"font-weight: 400;\"> As the NPS investments are market-linked, they are subject to market fluctuations, which may deter risk-averse individuals.\u200b<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Payout Uncertainty:<\/b><span style=\"font-weight: 400;\"> The retirement corpus and subsequent pension depend on the performance of the investments, leading to variability in retirement income.\u200b<\/span><\/li>\n<\/ul>\n<div id=\"metaslider-id-5575\" style=\"width: 100%;\" class=\"ml-slider-3-107-0 metaslider metaslider-flex metaslider-5575 ml-slider has-dots-nav ms-theme-default-base\" role=\"region\" aria-label=\"New Slideshow\" data-height=\"300\" data-width=\"700\">\n    <div id=\"metaslider_container_5575\">\n        <div id=\"metaslider_5575\">\n            <ul aria-live='off' class='slides'>\n                <li style=\"display: block; width: 100%;\" class=\"slide-5579 ms-image \" aria-roledescription=\"slide\" data-date=\"2025-10-11 11:47:58\" data-filename=\"400-X-180cdr-scaled-700x300.jpg\" data-slide-type=\"image\"><a href=\"https:\/\/theiashub.com\/courses\/mains\/upsc-qep-2026-batch-5-english\" target=\"_self\" aria-label=\"View Slide Details\" class=\"metaslider_image_link\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/theiashub.com\/upsc\/wp-content\/uploads\/2025\/10\/400-X-180cdr-scaled.jpg?resize=700%2C300&#038;ssl=1\" height=\"300\" width=\"700\" alt=\"\" class=\"slider-5575 slide-5579 msDefaultImage\" title=\"400 X 180cdr\" \/><\/a><\/li>\n                <li style=\"display: none; width: 100%;\" class=\"slide-5580 ms-image \" aria-roledescription=\"slide\" data-date=\"2025-10-11 11:47:58\" data-filename=\"pocket-notes-website-400x180-1-scaled-700x300.jpg\" data-slide-type=\"image\"><a href=\"https:\/\/theiashub.com\/courses\/upsc-cse-books\/qep-pocket-notes-2.0\" target=\"_self\" aria-label=\"View Slide Details\" class=\"metaslider_image_link\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/theiashub.com\/upsc\/wp-content\/uploads\/2025\/10\/pocket-notes-website-400x180-1-scaled.jpg?resize=700%2C300&#038;ssl=1\" height=\"300\" width=\"700\" alt=\"\" class=\"slider-5575 slide-5580 msDefaultImage\" title=\"pocket-notes-website-400x180\" \/><\/a><\/li>\n                <li style=\"display: none; width: 100%;\" class=\"slide-5581 ms-image \" aria-roledescription=\"slide\" data-date=\"2025-10-11 11:47:58\" data-filename=\"web-site-banner-toppers-book.-400x180-1-scaled-700x300.jpg\" data-slide-type=\"image\"><a href=\"https:\/\/theiashub.com\/courses\/upsc-cse-books\/toppers-handwritten-upsc-pyq-4-books\" target=\"_self\" aria-label=\"View Slide Details\" class=\"metaslider_image_link\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/theiashub.com\/upsc\/wp-content\/uploads\/2025\/10\/web-site-banner-toppers-book.-400x180-1-scaled.jpg?resize=700%2C300&#038;ssl=1\" height=\"300\" width=\"700\" alt=\"\" class=\"slider-5575 slide-5581 msDefaultImage\" title=\"web site banner toppers book. 400x180\" \/><\/a><\/li>\n            <\/ul>\n        <\/div>\n        \n    <\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"NPS_VS_UPS\"><\/span><b>NPS VS UPS<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In August 2024, the Government of India introduced the Unified Pension Scheme (UPS), set to be implemented from April 1, 2025. The UPS aims to combine features of the OPS and NPS to provide a more balanced and secure pension framework for government employees. Below is a comparative overview of the key features of NPS and UPS:\u200b<\/span><i><span style=\"font-weight: 400;\">Note: Employees have the option to switch from NPS to UPS; however, once the switch is made, it is irreversible.<\/span><\/i><span style=\"font-weight: 400;\">\u200b<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Feature<\/b><\/td>\n<td><b>National Pension System (NPS)<\/b><\/td>\n<td><b>Unified Pension Scheme (UPS)<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Beneficiary<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Available to all citizens, including government and private sector employees<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Exclusively for government employees<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Pension Calculation<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Based on the accumulated corpus and annuity rates at retirement<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Guarantees 50% of the average basic pay from the last 12 months before retirement<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Dearness Relief<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Market-linked, subject to investment performance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Periodic adjustments aligned with inflation indices<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Family Pension<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Depends on the annuity plan chosen; may vary<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Provides 60% of the employee\u2019s pension to the family in case of the employee&#8217;s demise<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Superannuation Payout<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Option to withdraw a lump sum upon retirement; remainder used for annuity purchase<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Lump sum payment along with gratuity benefits<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Minimum Service Requirement<\/b><\/td>\n<td><span style=\"font-weight: 400;\">No minimum service period required<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Minimum of 10 years of service to qualify<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Minimum Pension<\/b><\/td>\n<td><span style=\"font-weight: 400;\">No assured minimum pension; depends on corpus accumulated<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Assured minimum pension of \u20b910,000 per month for at least 10 years of service<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Contributions<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Employee: 10% of salary; Employer (for government employees): 14%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Employee: 10% of salary; Government: 18.5%<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Portability<\/b><\/td>\n<td><span style=\"font-weight: 400;\">Fully portable across jobs and locations<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not applicable; tied to government service<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Flexibility<\/b><\/td>\n<td><span style=\"font-weight: 400;\">High flexibility in contributions and investment choices<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Limited flexibility but offers guaranteed returns<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><b>Conclusion<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The National Pension System serves as a pivotal instrument in India&#8217;s retirement planning landscape, promoting a culture of savings and investment for post-retirement financial security. While it offers flexibility, portability, and tax benefits, potential subscribers must also consider the associated market risks and the need for informed investment decisions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The introduction of the Unified Pension Scheme provides an alternative for government employees seeking assured returns and defined benefits. Individuals are encouraged to assess their retirement goals, risk appetite, and financial situation to choose the most suitable pension plan.\u200b<\/span><\/p>\n<p><b>Are you preparing for UPSC 2025? <\/b><a href=\"https:\/\/theiashub.com\/courses\/prelims\/prelims-samadhaan-mentorship-2025?utm_source=website&amp;utm_medium=home_page&amp;utm_campaign=course\" target=\"_blank\" rel=\"noopener\"><b>Join IAShub&#8217;s UPSC coaching batches<\/b><\/a><b> to boost your preparation. Enroll now!<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td colspan=\"2\"><b>Also Read<\/b><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/theiashub.com\/upsc\/?p=2114&amp;preview=true\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Ujala Scheme<\/span><\/a><\/td>\n<td><a href=\"https:\/\/theiashub.com\/upsc\/?p=2056&amp;preview=true\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">PM Ujjwala Scheme<\/span><\/a><\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/theiashub.com\/upsc\/?p=2034&amp;preview=true\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">PM-KISAN<\/span><\/a><\/td>\n<td><a href=\"https:\/\/theiashub.com\/upsc\/?p=2045&amp;preview=true\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Deendayal Antyodaya Yojana<\/span><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"National_Pension_System_FAQs\"><\/span><b>National Pension System FAQs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<style>#sp-ea-2279 .spcollapsing { height: 0; overflow: hidden; transition-property: height;transition-duration: 300ms;}#sp-ea-2279{ position: relative; }#sp-ea-2279 .ea-card{ opacity: 0;}#eap-preloader-2279{ position: absolute; left: 0; top: 0; height: 100%;width: 100%; text-align: center;display: flex; align-items: center;justify-content: center;}#sp-ea-2279.sp-easy-accordion>.sp-ea-single {margin-bottom: 10px; border: 1px solid #e2e2e2; }#sp-ea-2279.sp-easy-accordion>.sp-ea-single>.ea-header a {color: #444;}#sp-ea-2279.sp-easy-accordion>.sp-ea-single>.sp-collapse>.ea-body {background: #fff; color: #444;}#sp-ea-2279.sp-easy-accordion>.sp-ea-single {background: #eee;}#sp-ea-2279.sp-easy-accordion>.sp-ea-single>.ea-header a .ea-expand-icon { float: left; color: #444;font-size: 16px;}.sp-ea-one.sp-easy-accordion .sp-ea-single .ea-header a {\r\n  padding: 7px;\r\n  background: #fff;\r\n}\r\n\r\n.sp-easy-accordion .sp-ea-single .ea-header a {\r\n  font-size: 1rem;\r\n}\r\n.sp-ea-one.sp-easy-accordion .sp-ea-single .ea-header a .ea-expand-icon {\r\n  font-size: 1rem;\r\n}\r\n\r\n.sp-easy-accordion .sp-ea-single .ea-header a .ea-expand-icon {\r\n  margin-right: 0px;\r\n}\r\n\r\n.sp-easy-accordion .sp-ea-single{\r\n background: #fff;\r\n}\r\n\r\n.ea-expand a{\r\n  background: #cfe2ff !important;\r\n}\r\n\r\n.sp-easy-accordion{\r\n  margin-bottom: 1rem;\r\n  margin-top: 1rem;\r\n}<\/style><div id=\"sp_easy_accordion-1744011469\"><div id=\"sp-ea-2279\" class=\"sp-ea-one sp-easy-accordion\" data-ea-active=\"ea-click\" data-ea-mode=\"vertical\" data-preloader=\"1\" data-scroll-active-item=\"1\" data-offset-to-scroll=\"0\"><div id=\"eap-preloader-2279\" class=\"accordion-preloader\"><img decoding=\"async\" src=\"https:\/\/theiashub.com\/upsc\/wp-content\/plugins\/easy-accordion-free\/public\/assets\/ea_loader.svg\" alt=\"Loader image\"\/><\/div><div class=\"ea-card ea-expand sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-22790\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse22790\" aria-controls=\"collapse22790\" href=\"#\" aria-expanded=\"true\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-minus\"><\/i> What is the NPS pension scheme?<\/a><\/h3><div class=\"sp-collapse spcollapse collapsed show\" id=\"collapse22790\" data-parent=\"#sp-ea-2279\" role=\"region\" aria-labelledby=\"ea-header-22790\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">The National Pension System (NPS) is a government-backed retirement savings scheme. It helps individuals build a pension corpus through regular contributions during their working years.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-22791\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse22791\" aria-controls=\"collapse22791\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is the difference between the old and new pension schemes?<\/a><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse22791\" data-parent=\"#sp-ea-2279\" role=\"region\" aria-labelledby=\"ea-header-22791\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">The Old Pension Scheme gives a fixed monthly pension post-retirement, while the New Pension Scheme is market-linked and depends on contributions and investment returns.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-22792\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse22792\" aria-controls=\"collapse22792\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is the employee contribution to the new pension scheme?<\/a><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse22792\" data-parent=\"#sp-ea-2279\" role=\"region\" aria-labelledby=\"ea-header-22792\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">Under the NPS, an employee contributes 10% of their basic salary and dearness allowance. The government contributes 14% for its employees.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-22793\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse22793\" aria-controls=\"collapse22793\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What is the rule of the new pension scheme?<\/a><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse22793\" data-parent=\"#sp-ea-2279\" role=\"region\" aria-labelledby=\"ea-header-22793\"> <div class=\"ea-body\"><p><span style=\"font-weight: 400\">The NPS allows individuals between 18 to 60 years to join and save for retirement. At retirement, 60% of the corpus can be withdrawn, and 40% must be used to buy an annuity.<\/span><\/p><\/div><\/div><\/div><div class=\"ea-card sp-ea-single\"><h3 class=\"ea-header\"><a class=\"collapsed\" id=\"ea-header-22794\" role=\"button\" data-sptoggle=\"spcollapse\" data-sptarget=\"#collapse22794\" aria-controls=\"collapse22794\" href=\"#\" aria-expanded=\"false\" tabindex=\"0\"><i aria-hidden=\"true\" role=\"presentation\" class=\"ea-expand-icon eap-icon-ea-expand-plus\"><\/i> What are the NPS regulations for 2024?<\/a><\/h3><div class=\"sp-collapse spcollapse \" id=\"collapse22794\" data-parent=\"#sp-ea-2279\" role=\"region\" aria-labelledby=\"ea-header-22794\"> <div class=\"ea-body\"><p><b>\u00a0<\/b><span style=\"font-weight: 400\">As per the 2024 rules, government employees can switch to the new Unified Pension Scheme, but the decision is irreversible. The NPS remains regulated by PFRDA with flexible and portable features.<\/span><\/p><\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Explore the National Pension System (NPS) in India: its features, eligibility, benefits, challenges, and a comparison with the Unified Pension Scheme (UPS) for informed retirement planning.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-2278","post","type-post","status-publish","format-standard","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/posts\/2278","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/comments?post=2278"}],"version-history":[{"count":4,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/posts\/2278\/revisions"}],"predecessor-version":[{"id":6331,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/posts\/2278\/revisions\/6331"}],"wp:attachment":[{"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/media?parent=2278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/categories?post=2278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theiashub.com\/upsc\/wp-json\/wp\/v2\/tags?post=2278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}