With reference to the New Pension Scheme consider the following statements It is available only for ...........

Economic Affairs Pension and Insurance

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With reference to the New Pension Scheme, consider the following statements

It is available only for government employees.
The law regulating the NPS allows members to withdraw just 60% of their accumulated savings at the time of retirement.

Select the correct statement.

1 only

2 only

Both

None

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Explanation:

Started as the New Pension Scheme for government employees in 2004 under a new regulator called the Pension Fund Regulatory and Development Authority (PFRDA), the National Pension System (NPS) has been open for individuals from all walks of life to participate.
The law regulating the NPS allows members to withdraw just 60% of their accumulated savings at the time of retirement. With the remaining 40%, it is mandatory to buy an annuity product that provides a fixed monthly income to retirees till their demise.
Members who accumulate up to Rs 2 lakh in their NPS account at the time of retirement are exempted from the mandatory annuitisation, and can withdraw the full amount.
Last week, PFRDA chairman said this limit will soon be revised toRs 5 lakh.
Separately, the regulator has decided that the annuity purchase stipulation for 40% of members’ retirement corpus should be dropped altogether. Legislative amendments to this effect are being worked out for Parliament’s approval.

Hence only statement 2nd is correct.

Note: New Pension Plan is also known as the National Pension Scheme is a pension plan introduced by the government of India in order to secure the financial future of the individuals after retirement.