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NATIONAL PENSION SCHEME

Why in news?

Only 10 lakhs employees are covered under the NPS as per assessment by PFRDA  (Pension Fund Regulatory and Development Authority )

Details about NPS

  • National Pension Scheme (NPS) is a government-sponsored pension scheme.
  • It was launched in January 2004 for government employees.
  • In 2009, it was opened to all sections.
  • The scheme allows subscribers to contribute regularly in a pension account during their working life.
  • On retirement, subscribers can withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
  • PFRDA mentioned that it is the mindset of the people that makes NPS less attractive
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