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| 04 November, 2026, 11:27 PM IST | ePaper | ET TV
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    National Pension Scheme

    National Pension Scheme (NPS), a government-sponsored pension scheme, was launched in January 2004 for government employees. It was opened to all sections in 2009. A subscriber can contribute regularly in a pension account during her working life, 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.

    Top Performing NPS Schemes

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    Most Consistent NPS Schemes

    Category Average Returns

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    FAQs on NPS

    What is National Pension System (NPS)?›

    National Pension Scheme (NPS) is a government-sponsored pension scheme. It was launched in January 2004 for government employees. However, 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.

    Who can join NPS?›

    Any Indian citizen between 18 and 60 years can join NPS. The only condition is that the person must comply with know your customer (KYC) norms.

    Can a Non Resident Indian (NRI) join NPS?›

    Yes, an NRI can join NPS. However, the account will be closed if there is a change in the citizenship status of the NRI.

    How do I join NPS?›

    You should open an NPS account with entities known as Point of Presence (POP). Most banks, both private and public sector, are enrolled as POPs. Several financial institutions also act as POPs. The authorized branches of a POP, called point of presence service providers (POP-SPs), act as the collection points.

    How can I find POPs near me?›

    You can access them through the website of Pension Fund Regulatory and Development Authority (PFRDA). https://www.npscra.nsdl.co.in/pop-sp.php

    What are the documents needed for opening an NPS account?›

    You should fill the subscriber registration form and submit it along with proof of identity, address, and date of birth to the POP.

    What is a Permanent Retirement Account Number (PRAN)?›

    Every NPS subscriber is issued a card with 12-digit unique number called Permanent Retirement Account Number or PRAN.

    What are Tier-I and Tier-II accounts›

    NPS offers two accounts: Tier-I and Tier-II accounts. Tier-I is a mandatory account and Tier-II is voluntary. The big difference between the two is on withdrawal of money invested in them. You cannot withdraw the entire money from Tier-I account till your retirement. Even on retirement, there are restrictions on withdrawal on the Tier-I account. The subscriber is free to withdraw the entire money from the Tier-II account.

    Can I have more than one NPS account?›

    No, you cannot open multiple NPS accounts. In fact, there is no need to open a second account as NPS is portable across sectors and locations.

    What is the minimum contribution in NPS?›

    You have to contribute a minimum of Rs 6,000 every year in your Tier-I account in a financial year.

    What will happen if I don't make the minimum contribution?›

    If you do not contribute the minimum amount, your account will be frozen. You can unfreeze the account by visiting the POP and pay the minimum required amount and a penalty of Rs 100.

    Will the government also contribute to my NPS account?›

    No, the government will not contribute to your NPS account.

    Who manages the money invested in NPS?›

    The money invested in NPS is managed by PFRDA-registered Pension Fund Managers. At the moment, there are eight pension fund managers: ICICI Prudential Pension Fund, LIC Pension Fund, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Fund, UTI Retirement Solutions Pension Fund, HDFC Pension Management Company, and DSP BlackRock Pension Fund Managers.

    What are the investment choices available in NPS?›

    The NPS offers two choices:
    • 1. Active Choice: This option allows the investor to decide how the money should be invested in different assets.
    • 2. Auto choice or lifecycle fund: This is the default option which invests money automatically in line with the age of the subscriber.

    What are the investment options available under Active Choice?›

    The Active Choice offers three funds or investment options: Asset Class E (invests 50 per cent in stocks); Asset Class C (invests in fixed income instruments other than government securities); Asset Class G (invests only in government securities). An investor can choose one of these funds or opt for a combination of them.

    Can I change my investment choices?›

    Yes, you can change your investment choices once in a financial year for both Tier-I and Tier-II accounts.

    Can I change my scheme and pension fund managers?›

    Yes, you can change your scheme preference and pension fund manager. You can even change your investment option (active and auto choices).

    Can I have different pension fund managers and investment option for Tier I and Tier II account?›

    Yes, you can select different pension fund managers and investment options for your NPS Tier I and Tier II accounts.

    What are the tax benefits available for NPS?›

    • 1. An employee's own contribution is eligible for a tax deduction --up to 10 per cent of the salary (basic plus DA) - under Section 80CCD(1)
    • 1. of the Income Tax Act within the overall ceiling of Rs 1.5 lakh allowed under Section 80C and Section 80CCE.
    • The employer's contribution to NPS is exempted under Section 80CCD
    • 2. Moreover, individuals can claim an additional deduction of up to Rs 50,000 under Section 80CCD (1B), which is in addition to Rs 1.5 lakh permitted under Section 80C.
    • 3. A self-employed person can also contribute 10 per cent of his gross income under Section 80CCD (1) in NPS.

    When can I withdraw money from NPS?›

    NPS is a pension product. So, you are expected to stay invested until your retirement. At 60, you must use at least 40 per cent of the corpus to buy an annuity income from a PFRDA-listed insurance company. You have the option to withdraw 40 per cent of the corpus tax-free. You can withdraw the remaining 20 per cent of the corpus (it will be taxed as per the income tax slab applicable to you) or use it to buy annuity.

    Can I defer withdrawing the lumpsum amount at 60?›

    Yes, you can defer withdrawing the lumpsum amount in NPS until you are 70 years old.

    What if I want to take the money out before I am 60?›

    If you are getting out of the scheme before you are 60 years old, you can only withdraw 20 per cent of the accumulated corpus in NPS. You must use 80 per cent of the corpus to buy an annuity.

    What happens to the money if I discontinue the scheme?›

    If you discontinue your investment, your account will be frozen. You can reactivate the account only if you make the minimum contribution required along with the penalty.

    What happens if the subscriber dies before 60 years?›

    If the subscriber dies before 60 years, the entire accumulated wealth would be paid to the nominee/legal heir of the subscriber.

    How do I withdraw the money from NPS?›

    You will have to submit the withdrawal application to the POP along with relevant documents. POP would authenticate the documents and forward them to Central Record-keeping Agency (CRA) and NSDL. CRA would register your claim and forward you the application form along with details of documents that need to be submitted. Once you complete the necessary procedure, CRA processes the application and settles the account.

    What are the documents to be submitted along with withdrawal forms?›

    You have to submit the following documents along with the withdrawal forms:
    • 1. PRAN card (original)
    • 2. Attested copy of proof of identity
    • 3. Attested copy of proof of address
    • 4. A cancelled cheque

    What is an annuity?›

    An annuity provides a regular income (it could be monthly, quarterly, annual, etc) at a specified rate for a specified period chosen by the subscriber. In NPS, a subscriber must use at least 40 per cent of the corpus to buy an annuity. It means the person can pay the money to an Annuity Service Provider (ASP) and choose an annuity option to ensure a regular income after retirement.

    Who are the Annuity Service Providers?›

    Currently, these insurance companies are empanelled by PFRDA as ASPs:
    • 1. Life Insurance Corporation of India
    • 2. SBI Life Insurance
    • 3. ICICI Prudential Life Insurance
    • 4. Bajaj Allianz Life Insurance
    • 5. Star Union Dai-ichi Life Insurance
    • 6. Reliance Life Insurance
    • 7. HDFC Standard Life Insurance

    What are the different annuity options offered by ASPs?›

    Here are some generic annuity options offered by ASPs. Remember, some ASPs may offer a slightly different or combination of these options:
    • 1. Pension (annuity) payable for life at a uniform rate to the subscriber
    • 2. Pension (annuity) payable for 5, 10, 20 years certain and thereafter as long as you are alive
    • 3. Pension (annuity) for life with return of purchase price on death of the subscriber
    • 4. Pension (annuity) payable for life increasing at a simple rate of 3 per cent
    • 5. Pension (annuity) for life with a provision of 50 per cent of the annuity payable to spouse during his/her lifetime on death of the subscriber
    • 6. Pension (annuity) for life with a provision of 100 per cent of the annuity payable to spouse during his/her lifetime on death of the subscriber
    • 7. Pension (annuity) for life with a provision of 100 per cent of the annuity payable to spouse during his/her lifetime on death of the subscriber and with return of purchase price on death of the spouse.

    How is the annuity income taxed?›

    The annuity income will be added to your income and taxed as per the income tax slab applicable to you.

    All about NPS

    Government clarifies GPF rules for deceased employee’s claim: Ministry reveals who among family members and nominees get GPF money

    GPF for government employees: The government has provided crucial updates on the General Provident Fund (GPF) policies concerning the beneficiaries of deceased government employees. While family nominees will be entitled to the GPF funds, certain stipulations apply. In cases where valid nominees are absent, family members will inherit equal portions of the GPF sum, but exclusions are noted for adult sons and married daughters.

    These state govt employees can apply for Old Pension Scheme over NPS if they satisfy the conditions in this 2026 govt order

    Approximately 275 teachers in Jammu and Kashmir have faced issues with their pension scheme status. They were regularised after January 1, 2010, yet argue for the Old Pension Scheme benefits. The Central Administrative Tribunal has ruled that the teachers can apply for the Old Pension Scheme under new government guidelines. However, the final decision hinges on fulfilling specific conditions outlined in the government order.

    During World War I, zinc mining helped Rush, Arkansas, grow to 2,000 to 3,000 residents; by 1920, its population had fallen to 344, and mining ruins remain along the Buffalo River

    Rush, Arkansas, experienced a boom during World War I, driven by high zinc demand which transformed it into a bustling mining hub. Essential amenities like hotels and stores emerged to support the growing population and mining activities. However, post-war economic shifts resulted in a steep decline, reducing the community to just 344 residents by 1920.

    NPS investment in startups: AINPSEF writes to PM Modi seeking probe and asks for dissolution of NPS Trust

    Manjeet Singh Patel has alleged serious financial irregularities concerning the National Pension System Trust. He has requested a high-level audit by the Comptroller and Auditor General of India. Patel asserts that many employees' NPS investments have turned negative due to poor market performance. He demands the implementation of a guaranteed minimum return on employee contributions.

    J&K Old Pension Scheme: These employees can switch from NPS to OPS

    The Jammu and Kashmir government is offering eligible employees a rare chance to transition from the National Pension System (NPS) to the Old Pension Scheme (OPS). This opportunity is available to those appointed to specific roles prior to December 2009, provided they joined on or after January 2010, with applications accepted until December 2026. To apply, employees must submit requests to a Drawing and Disbursing Officer.

    How much risk can you take? Pension regulator plans to ask before you choose an NPS scheme

    PFRDA is set to launch a suitability platform to evaluate the risk appetite of NPS subscribers. This platform will be integrated across various NPS interfaces for better assessment. The aim is to enable subscribers to make informed choices about their pension schemes. Recent studies indicate a growing interest in NPS among individuals planning for retirement. Despite increasing interest, pension coverage in India remains low at around 17-18%.

    Rs 1.68 crore investments, Rs 89,000 monthly MF SIP. Can this 40-year-old investor retire at 50?

    A 40-year-old investor based in Pune is on a mission to retire by age 50 while providing for her two children’s education. With savings of Rs 1.68 cr from diverse investments, she plans to pay off her home loan by December 2026. Experts suggest she aim for a retirement fund between Rs 4-4.5 cr and adapt her investment strategy as her financial goals draw near.

    NPS Swasthya latest guidelines: How much do you need to contribute? Check fees, withdrawal and exit rules

    The PFRDA has unveiled comprehensive operational guidelines for the NPS Swasthya health cover. These guidelines specify minimum contributions, premium costs, and rules for partial withdrawals. NPS Swasthya supports family floater policies for subscribers, their spouses, and children.

    FinMin to meet PSB, RRB chiefs on Monday to ensure banking services during 3-day strike

    Finance Ministry will meet bank executives on Monday. They will discuss continuity of banking operations during a three-day strike. The United Forum of Bank Unions called the strike for September 28. This strike will impact banking services for five days. Bank unions demand a five-day banking week and pension updates.

    8th Pay Commission latest news: 8 demands from nursing staff in Chandigarh meeting

    The Nurses Welfare Association engaged with the 8th Pay Commission officials to present crucial demands. They aim for an increase in starting salaries and better compensation for night shifts. Furthermore, the association is pushing for expanded insurance benefits and additional hardship allowances. A significant ask is the reinstatement of the Old Pension Scheme for nurses, alongside a request for Chandigarh city's category elevation.

    Is Punjab heading towards UPS-like pension scheme? Here’s what its notification suggests

    The Punjab government is taking a closer look at its pension scheme for state employees, with the goal of aligning benefits more closely to the Old Pension Scheme. This comprehensive review will assess both the administrative and financial aspects necessary for effective implementation while also drawing insights from successful practices in other states. A revised pension structure is set to be proposed following this in-depth analysis.

    Global Fintech Fest 2026: PFRDA plans inflation-linked bonds to offer inflation-protected pension returns

    India's pension regulator is developing innovative bond issuances for inflation-protected returns. Guidelines for these new products are expected within days, with rollout to follow soon. The PFRDA is also working on a guaranteed-return scheme for non-government employees. This initiative aims to provide more predictable retirement income for subscribers. The regulator also plans to expand pension coverage among informal sector workers.

    NC-JCM seeks Old Pension Scheme for NPS employees recruited against pre-2003 vacancies; who can benefit?

    The NC-JCM has urged that older vacancy sanction letters be used to assess eligibility for the Old Pension Scheme (OPS). During a meeting with the DoPT secretary, they emphasized the importance of this pension issue. Legal rulings have favored employees recruited post-January 1, 2004, for OPS benefits, as the New Pension Scheme (NPS) took effect for central government workers on that date.

    Rs 97,500 monthly SIP & over Rs 2 crore corpus at 62? Expert suggests portfolio rejig for NRI investor to reach Rs 3 crore goal

    As retirement approaches, a non-resident Indian (NRI) investor with a target of Rs 3 crore seeks guidance from a financial expert. The advisor recommends a structured approach involving asset allocation and portfolio consolidation. The investor's assets are categorized into three groups according to their risk profiles and investment timelines. Certain mutual funds are advised for both retention and new contributions.

    Revised NPS rules for subscribers: PFRDA classifies NPS schemes into five categories; how it will make scheme selection easier for you

    NPS subscribers will experience significant changes in pension fund categorization and presentation. A new framework standardizes scheme selection, offering five broad categories for subscribers. Lifecycle schemes will be sub-categorized, while MSF schemes will have five distinct equity exposure levels. The pension body also mandates a new procedure for comparing charges, returns, and risk. This initiative aims to enhance subscriber decision-making regarding their pension investments.

    In 1884, a widow began building a 160-room California mansion for decades. The reason behind endless construction is terrifying

    Sarah Winchester built a sprawling mansion after family tragedies and spiritual advice. She continuously constructed the house for decades, which became a legend. The elaborate Victorian home featured 160 rooms and six acres of land. Construction finally ceased upon her death in 1922. The Winchester Mystery House now fascinates visitors with its history and folklore.

    Over Rs 1 crore invested in mutual funds, NPS, PPF and FDs: Should this PSU banker increase equity exposure with 18 years to retirement?

    A 42-year-old PSU bank chief manager, who recently welcomed twins, sought a review of his family’s financial portfolio. With around 18 years to retirement, the couple has investments across mutual funds, fixed deposits, NPS and PPF, along with home and car loans. The key priorities are building a retirement corpus, funding their children’s education and marriage, and ensuring adequate financial protection.

    Axis Pension Fund AUM crosses Rs 20,000 crore, doubles assets in 15 months

    Axis Pension Fund has crossed Rs 20,000 crore in assets under management, doubling its AUM in 15 months amid growing adoption of the National Pension System. The pension fund said wider distribution, rising awareness and stronger customer trust have supported growth across retail, corporate, government and institutional segments.

    In 1850, a widowed mother moved to Colorado and claimed a homestead. 15 years later, she was helping build one of the state's first communities where women could vote

    Adeline Hornbek, a Massachusetts native, became a successful Colorado rancher. She faced significant loss, including her husband and a devastating flood. Hornbek rebuilt her life and established a substantial homestead in Florissant Valley. She actively contributed to her community, serving on the school board. Her enduring homestead now preserves her remarkable story of perseverance.

    No UPS pension for retirees of this state government; employee body writes to Nirmala Sitharaman, seeks intervention

    Retired employees and teachers from the Delhi government are anxiously waiting for their pensions under the Unified Pension Scheme. The All India NPS Employees Federation has appealed to the Finance Minister for a swift resolution of these matters. With many retirees having applied well before the September 2025 cutoff, the ongoing delays are causing significant financial strain.

    Data Sources: Mutual Funds, ETFs, and NPS data are sourced from Value Research

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