"The Central Government had introduced the National Pension System (NPS) with effect from January 01, 2004 (except for armed forces).
Pension Fund Regulatory and Development Authority (PFRDA), the regulatory body for NPS, finalised the architecture and appointed NSDL as Central Recordkeeping Agency (CRA) and other entities for National Pension System.
Subsequently, various State Governments adopted this architecture and implemented NPS with effect from different dates.
In NPS, a government employee contributes towards pension from monthly salary (minimum 10%) along with matching contribution from the employer. The funds are then invested in earmarked investment schemes through Pension Fund Managers."
Scheme Information
'As per the present guidelines of Pension Fund Regulatory and Development Authority(PFRDA), contribution towards pension will be invested in the default schemes for State Government of three Pension Fund Managers (PFMs), viz, LIC Pension Fund Limited, SBI Pension Funds Pvt. Limited and UTI Retirement Solutions Limited.
Who can join?
1.Employees of Central Government or Central Autonomous Bodies
2.Employees of State Government or State Autonomous Bodies
3. Private Sector Employees
4.All Citizens of India: Any individual citizen of India (both resident and Non-resident) in the age group of 18-65 years (as on the date of submission of NPS application) not being covered by any of the above sectors has been allowed to join NPS architecture under the All Citizens of India sector from May 01, 2009.
Multiple AccountsNo, opening multiple NPS accounts for an individual is not allowed under NPS. However an Individual can have one account in NPS and another account in Atal Pension Yojna.
How NPS works?
Upon successful enrolment, a Permanent Retirement Account Number (PRAN) is allotted to the subscriber under NPS. Once the PRAN is generated, an email alert as well as a SMS alert is sent to the registered email ID and mobile number of the subscriber by NSDL-CRA (Central Record Keeping Agency).Subscriber contributes periodically and regularly towards NPS during the working life to create the corpus for retirement. On retirement or exit from the scheme, the Corpus is made available to the Subscriber with the mandate that some portion of the Corpus must be invested in to Annuity to provide a monthly pension post retirement or exit from the scheme.
