About National Pension System 

• NPS, regulated by the Pension Fund Regulatory and Development Authority (PFRDA), is a contributory pension scheme under which employees contribute 10 per cent of their salary. The government contributes 14 per cent towards the employees’ NPS accounts. 
• Under NPS, individual savings are pooled into a pension fund which are invested by PFRDA regulated professional fund managers as per the approved investment guidelines into the diversified portfolios comprising Government Bonds, Bills, Corporate Debentures and Shares. These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.
• ​At the time of normal exit from NPS, the subscribers may use the accumulated pension wealth under the scheme to purchase a life annuity from a PFRDA empaneled Life Insurance Company apart from withdrawing a part of the accumulated pension wealth as lump-sum, if they choose so.

Eligibility

Citizens:

• A citizen of India, whether resident or non-resident, between 18 – 60 years of age.

Central Government Employees:

• The Central Government had introduced the NPS with effect from January 1, 2004 (except for armed forces). Hence, all Central Government employees joining on or after 01-01- 2004 are mandatorily covered under NPS.

State Government Employees:

• To be a subscriber under a State Government, the individual has to be employed under the particular State Government. Various State Governments have adopted NPS architecture and implemented NPS with effect from different dates.