National Pension System (NPS) which replaced the existing defined benefit pension of Central Government employee’s w.e.f. 1st January 2004 and adopted by almost all the State Governments for its employees was also extended to all citizens of India (resident/non-resident) on a voluntary basis in May’2009. Subsequently, Corporates/Institutions/Entities were permitted to adopt NPS as a retirement benefit scheme for their employees and Overseas Citizens of India (OCIs) were also allowed to join in NPS at par with Non-Resident Indians (NRIs).
As on 31st March 2020, 21.20 lakhs Central Government employees and 47.54 lakhs State Government employees have been enrolled under NPS and the pension assets accumulated through monthly contributions by government employees have reached Rs 1,38,046 crores and Rs 2,22,022 crores respectively.
Apart from the government employees, a total of 22.26 lakhs citizens have also adopted NPS comprising of 12.52 lakhs individuals and 9.74 lakhs corporate employees tagged to 7571 entities. During the FY 2019-20, a total of 5,40,434 new subscribers and 1,617 new corporate entities have enrolled themselves in NPS (non-govt. sector).
Shri Supratim Bandyopadhyay, Chairman, PFRDA expressed that “the voluntary adoption of NPS by individuals and entities has been uninspiring over the years considering the immense growth potential the pension sector poses in India. Nevertheless, during the last financial year we have been efficacious in realizing a growth of 43% in subscriber enrollments (over previous year) and hold a very positive outlook for increasing the pension coverage during the current fiscal considering an early economic recovery after the COVD-19 lockdown and the sympathetic decision of the Government to extend the date till 30th Jun 2020 for making investments by an individual to claim deductions under the IT Act.”
Status of NPS & APY (31st Mar 2019 and 31st March 2020):-