<h1>Government Official Explains New Pension Scheme: Defined Contribution Plan with Annuity at Retirement, Unlike Old Pension System.</h1> The New Pension Scheme (NPS) is a defined contribution plan where payouts depend on contributions and investment growth, unlike defined benefit schemes based on salary and service years. Upon retirement at 60, subscribers can withdraw 60% of their accumulated wealth, with the remaining 40% invested in a life annuity from an IRDA-approved insurance company. Annuity Service Providers are in the process of registration. Under NPS, the government co-contributes during an employee's service to build a retirement corpus, differing from the old pension scheme where the government pays post-retirement pensions. This was disclosed by a government official in a parliamentary session.