Press Information Bureau

Government of India

Ministry of Finance

30-March-2012 17:22 IST

Pension to Retired Employees

The Government had introduced the New Pension System (NPS) from 1st January, 2004 through a Notification dated 22nd December, 2003 for new entrants to Central Government service, on mandatory basis, except to Armed Forces, joining service on or after 01.01.2004 replacing the existing system of defined benefit pension system. NPS has also been extended to autonomous bodies, State Governments and un-organised sector. The employees working in Central Public Sector Enterprises (CPSEs) are not covered mandatorily under NPS. However, three CPSEs, viz Konkan Railway Corporation Ltd. Manganese Ore (India Ltd. ) and NALCO have adopted NPS on voluntarily basis with effect from 01.01.2004, 01.07.2011 and 01.01.2007 respectively.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in the Lok Sabha today.

SS/SL

New Pension System replaces defined benefit pension for new central government entrants; some public enterprises adopted it voluntarily. The New Pension System replaced the defined benefit pension system for new entrants to Central Government service, making membership mandatory for such entrants except for the Armed Forces. NPS has been extended to autonomous bodies, State Governments and the unorganised sector, while Central Public Sector Enterprises are not mandatorily covered but may adopt NPS voluntarily.