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With reference to the National Pension System (NPS), consider the following statements:
1. It is a participatory scheme, where employees contribute to their pension corpus from their salaries, with matching contribution from the government.
2. The Pension Fund Regulatory and Development Authority (PFRDA) is the regulator for NPS. 
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the National Pension System (NPS), consider the foll...
Recently Rajasthan government decided to discontinue National Pension System (NPS) in the state.
  • National Pension System was introduced in 2003.
  • The scheme is applicable to all new recruits joining the Central Government service (except armed forces) from April 1, 2004. On introduction of NPS, the Central Civil Services (Pension) Rules, 1972 was amended.
  • It is a participatory scheme, where employees contribute to their pension corpus from their salaries, with matching contribution from the government. The funds are then invested in earmarked investment schemes through Pension Fund Managers. At retirement, they can withdraw 60% of the corpus, which is tax-free and the remaining 40% is invested in annuities, which is taxed. It can have two components — Tier I and II. Tier-II is a voluntary savings account that offers greater flexibility in terms of withdrawal, and one can withdraw at any point of time, unlike Tier I account. Even private individuals can opt for the scheme.
  • The Pension Fund Regulatory and Development Authority (PFRDA) is the regulator for NPS.
Hence both statements are correct.
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With reference to the National Pension System (NPS), consider the following statements:1. It is a participatory scheme, where employees contribute to their pension corpus from their salaries, with matching contribution from the government.2. The Pension Fund Regulatory and Development Authority (PFRDA) is the regulator for NPS.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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With reference to the National Pension System (NPS), consider the following statements:1. It is a participatory scheme, where employees contribute to their pension corpus from their salaries, with matching contribution from the government.2. The Pension Fund Regulatory and Development Authority (PFRDA) is the regulator for NPS.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the National Pension System (NPS), consider the following statements:1. It is a participatory scheme, where employees contribute to their pension corpus from their salaries, with matching contribution from the government.2. The Pension Fund Regulatory and Development Authority (PFRDA) is the regulator for NPS.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the National Pension System (NPS), consider the following statements:1. It is a participatory scheme, where employees contribute to their pension corpus from their salaries, with matching contribution from the government.2. The Pension Fund Regulatory and Development Authority (PFRDA) is the regulator for NPS.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?.
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