Topics Covered:
- Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections.
National Pension Scheme
What to study?
For Prelims: Key features, objectives of the scheme.
For Mains: Significance of the scheme and its role in ensuring financial security of the citizens.
Context: Pension Fund Regulatory and Development Authority (PFRDA) has now permitted Overseas Citizen of India (OCI) to enrol in National Pension Scheme (NPS) at par with Non-Resident Indians.
What is National Pension System (NPS)?
- It is a government-sponsored pension scheme. It was launched in January 2004 for government employees. However, in 2009, it was opened to all sections.
- The scheme allows subscribers to contribute regularly in a pension account during their working life. On retirement, subscribers can withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
- This system is managed by PFRDA (Pension Fund Regulatory and Development Authority).
Who can join NPS?
- Any Indian citizen between 18 and 65 years can join NPS.
- An NRI can join NPS. However, the account will be closed if there is a change in the citizenship status of the NRI.
- Now, any Indian citizen, resident or non-resident and OCIs are eligible to join NPS till the age of 65 years.
Sources: the Hindu.
