NPS was constituted in 2004 is a ‘defined contribution’ scheme unlike the ‘defined benefit’ scheme for existing central government employees. PFRDA has set up a Trust- (NPS Trust) to oversee the investments made by Pension Fund Managers.
It is applicable to all GOI employees ( Except armed forces) joining government service from 01.01.2004.
State governments have also been given an option to join the NPS. 27 State governments have so far chosen to join.
Under the scheme employees contribute 10% of the salary (Basic Pay + DA) and contribution amount is matched by Government