Press Information Bureau Government of India Ministry of Finance
05-December-2014 17:00 IST
Review of New Pension Scheme
The Government has not undertaken any comparative study to examine the efficacy of the National Pension System (NPS) (earlier known as the New Pension Scheme) vis-à-vis the odl defined benefit scheme.
However, the NPS has launched based on the need for pension reform felt by the Government of India in the year 2003, to meet obligations related to pensions in a sustainable manner. The NPS for government employees is conceived on sound principles involving regular contributions by the employee and the Government, and prudent investment of the corpus under regulatory supervision.
The Government has examined the returns on the investment made from the contribution of the employees through the NPS. The returns on annual compounding basis on the Central Government Sector under NPS since its inception i.e., 1.4.2008 for the period ending are as under:
This information was given by the Union Minister of Finance, Shri Arun Jaitley in written reply to a question in Lok Sabha today.