{"id":17384,"date":"2023-11-25T09:13:15","date_gmt":"2023-11-25T03:43:15","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=17384"},"modified":"2025-04-05T03:58:40","modified_gmt":"2025-04-04T22:28:40","slug":"nps","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/nps\/","title":{"rendered":"National Pension System (NPS)"},"content":{"rendered":"<h2>About National Pension System (NPS)<\/h2>\n<ul>\n<li>It is a\u00a0retirement benefit scheme introduced by the Government of India\u00a0to facilitate regular income post-retirement\u00a0for all subscribers.\u00a0<\/li>\n<li>NPS was launched on 1st January, 2004.<\/li>\n<li>Initially, NPS was\u00a0introduced for\u00a0the new\u00a0government recruits (except the armed forces).\u00a0With effect from 1st May,\u00a02009, NPS has been provided for all citizens of the country, including the unorganised sector workers on voluntary basis.<\/li>\n<li>Voluntary: It is\u00a0a voluntary scheme\u00a0for all citizens of India. People\u00a0can invest any amount in their NPS account at any time.<\/li>\n<li>Permanent Retirement Account Number (PRAN):\u00a0It is based on a\u00a0unique PRAN, which is allotted to every subscriber.<\/li>\n<li>Portability: NPS account or PRAN will remain the same irrespective of changes in employment, city, or state. It can be used from any location in India.<\/li>\n<li>PFRDA (Pension Fund Regulatory and Development Authority) is the governing body for NPS.<\/li>\n<li>There is\u00a0no defined benefit that would be available\u00a0at the time of exit\u00a0from the system, and the\u00a0accumulated wealth depends on the contributions made\u00a0and the\u00a0income generated from the investment\u00a0of such wealth.<\/li>\n<li>Under NPS,\u00a0individual savings are pooled into a pension fund,\u00a0which is invested by PFRDA-regulated professional fund managers into diversified portfolios comprising Government Bonds, Bills, Corporate Debentures, and Shares.<\/li>\n<li>Contributions made by individual subscribers\u00a0are accumulated until retirement, and\u00a0corpus growth continues via market-linked returns. Subscribers also\u00a0have the option to exit this plan before retirement or opt for superannuation.\u00a0<\/li>\n<li>PRAN will\u00a0provide access to two personal accounts:\n<ul>\n<li>Tier I Account: This is a\u00a0non-withdrawable account meant for savings for retirement.<\/li>\n<li>Tier II Account: This is simply a\u00a0voluntary savings facility. The subscriber is\u00a0free to withdraw savings from this account\u00a0whenever he or she wishes.\u00a0No tax benefit is available on this account.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is the PFRDA (Pension Fund Regulatory and Development Authority)?<\/h3>\n<p>The Pension Fund Regulatory &amp; Development Authority Act was passed on 19th September, 2013 and the same was notified on 1st February, 2014. PFRDA regulates NPS, subscribed by employees of Govt. of India, State Governments and by employees of private institutions\/organizations &amp; unorganized sectors. The objective of PFRDA is to promote old-age income security by establishing, developing and regulating pension funds to protect the interests of the subscribers of pension fund and for matters connected therewith or incidental thereto.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/will-deliberate-on-old-pension-scheme-after-panel-report-amit-shah\/article67567187.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>Will deliberate on Old Pension Scheme after panel report: Amit Shah<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Pension System is a retirement benefit scheme introduced by the Government of India to facilitate regular income post-retirement for all subscribers. <\/p>\n","protected":false},"author":5,"featured_media":17385,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-17384","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/17384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=17384"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/17384\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/17385"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=17384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=17384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=17384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}