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About NPS

The Government of India as a defined contribution pension system launched NPS (National Pension System) in the year 2004. All employees who joined the government service from 2004 come under this scheme. administered and regulated by the Pension Fund Regulatory and Development Authority (PFRDA) created by an Act of the Parliament of India. But the old pension system is much better than NPS. The Indian Government has launched NPS due to relieved of gradually from huge financial burden.

Presently, The NPS is being made available for common people from 2009. Then anybody can access this facility through online or offline also. The contribution under Tier-II of NPS is covered under Section 80C for deduction up to Rs. 1.50 lakh for income tax benefits, provided there is a lock-in period of three years. Contributions to NPS receive tax exemptions under Section 80C, Section 80CCC and Section 80CCD(1) of Income Tax Act.

At present, central government employees have no say in the matter of choice of the fund manager or investment allocation in NPS, as both are decided by the government. All the NPS contributions of Central government employees are being distributed evenly across three public sector fund managers: LIC Pension Fund, SBI Pension Fund and UTI Retirement Solutions.

NPS offers two types of accounts to its subscribers:

  • Tier I:- The primary account, which is a pension account which has restrictions on withdrawals and utilization of accumulated corpus. All the tax breaks that NPS offers are applicable only to Tier I accounts.
  • Tier II:- In order to introduce some liquidity to the scheme, the PFRDA allows for a Tier II account where subscribers with pre-existing Tier I accounts can deposit and withdrawn monies as and when they want. NPS Tier II is an investment account, similar to a mutual fund in characteristics, but offers no Exit load, no commissions, no charges, superior returns and tax benefits.


Attn. to all NPS Subscriber,

New Pension System totally depends on Share Market. If you are a lucky man then you will achieve a huge amount at the stage of retirement otherwise, you will get great loss.

The number of pension fund managers (PFM) has increased to seven in NPS.

  • SBI Pension Funds
  • LIC Pension Fund
  • Kotak Pension Fund
  • UTI Retirement Solutions
  • HDFC Pension Fund
  • ICICI Prudential Pension Fund
  • Birla Sun Life Pension Management Ltd