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