6
National Pension System or New Pension Scheme (NPS) is a predefined contributory pension system which was introduced by the government of India in January 2004. This NPS scheme was primarily meant for the Govt. employees only. Before 2004, NPS used to be a defined benefit plan, wherein the benefits available to the pensioners post-retirement were pre-defined. But to reduce its pension liability the Central Govt. resorted to a contributory pension plan in the name of National Pension System.
