Government NPS New - National Pension Scheme (NPS) - Open NPS Account Online - HDFC Pension

NPS was implemented by Govt of India for Central Government employees in 2004. Employees joining the Central Government services effective 1st January 2004 are mandated to join NPS.

As a policy 10% of Basic and DA of the employee Salary is deducted from Salary of the employee and matching contribution is deposited by respective Government units in NPS account of the employee. Both the contributions are invested in asset classes as per the option selected by employee.

As per the recent mandate from Government, the contribution from respective Government unit would be 14% of Basic + DA Salary of the employee.



Investment Options for Central Government employees

Initially investment option for Central Government employees was fixed and employee did not have choice. However, Central Government employees now have the option of selecting the Pension Fund Manager and Investment Pattern in their Tier- I account w.e.f. April 1, 2019. The employee can choose any one of the available Pension Fund Manager and Investment Option as per their choice as mentioned below. If the employee does not make any choice, NPS contributions would be invested in the existing default old schemes in a predefined proportion, as mentioned in the Statement of Transaction (SoT), as per the guidelines issued by PFRDA.

  • Scheme LC 50 – Life cycle fund where the Cap to Equity investments is 50% of the total asset.
  • Scheme LC 25 – Life cycle fund where the Cap to Equity investments is 25% of the total asset.
  • Scheme G – 100% of contribution shall be invested in Government Bonds and related instruments.
  • Default Scheme – Investments would be done in defaults schemes of LIC, UTI and SBI in a predefined proportion.

Returns on Investment in different schemes

Fund Manager
LC 50
LC 25
5 Years
7 Years
5 Years
7 Years
HDFC Pension 8.73% 11.42% 9.59% 11.17%
ICICI Pru Pension 7.97% 11.06% 9.13% 10.92%
Kotak Pension 8.14% 11.05% 9.08% 10.78%
SBI Pension 8.12% 10.96% 9.24% 10.84%
UTI pension 7.94% 10.87% 8.96% 10.65%
LIC Pension 7.50% 10.08% 9.07% 10.70%


NPS Fund Performance Report- Click Here