Pension Fund Regulatory and Development Authority (PFRDA) celebrated NPS Diwas 2025 on 1st October 2025 in New Delhi, under the theme- “Inclusive Pensions, Innovative Solutions: Strengthening Retirement Security in India.”
The event brought together senior policymakers, regulators, industry leaders, and stakeholders to discuss strategies to expand pension coverage and strengthen India’s retirement security ecosystem.
About NPS Diwas
- Launched: 2021 (under Azadi Ka Amrit Mahotsav initiative).
- Objective: To encourage citizens to plan early for financial independence during retirement.
- Nature: A nationwide awareness campaign and an annual event organized by PFRDA on October 1.
- Over time, it has evolved into a national platform for dialogue, policy reform, and innovation in the pension sector.
Key Highlights of NPS Diwas 2025
- The event reaffirmed that National Pension System (NPS) has transformed India’s pension landscape — expanding beyond government employees to all citizens.
- Focus Areas:
- Pension inclusivity through digital expansion.
- Low-cost, market-linked, and transparent pension options.
- Integrating technology for seamless access and participation.
- Stakeholders emphasized making NPS a Jan Andolan (mass movement), encouraging people from all walks of life to start retirement planning early.
Significance of NPS Diwas 2025
- Promotes financial literacy and retirement planning among youth and unorganised sector workers.
- Encourages inclusive pension coverage and participation from private sector employees.
- Strengthens India’s pension ecosystem aligned with Digital India and Aatmanirbhar Bharat.
- Reinforces trust, transparency, and technology in India’s retirement security model.
About National Pension System (NPS)
| Aspect | Details |
| Launch Date | 1 January 2004 |
| Initially for | Central Government employees (except Armed Forces) |
| Extended to All Citizens | From 1 May 2009 (including unorganised sector) |
| Regulated by | Pension Fund Regulatory and Development Authority (PFRDA) |
| Nature | Voluntary, contributory, market-linked retirement scheme |
| Age Eligibility | 18 to 65 years |
| Jurisdiction | All citizens of India, including NRIs |
| Tax Benefit | Available under Sections 80CCD(1), 80CCD(1B) of the Income Tax Act |
Structure of NPS
1. Tier I Account
- Mandatory retirement account (non-withdrawable).
- Provides tax benefits.
- Partial withdrawals allowed under specific conditions.
2. Tier II Account
- Voluntary savings account, flexible withdrawals.
- No tax benefits under Income Tax Act.
Salient Features
- Portability: PRAN (Permanent Retirement Account Number) remains the same throughout life — irrespective of change in job, city, or state.
- Voluntary Participation: Subscribers can contribute any amount, anytime.
- Investment Mechanism:
- Contributions are pooled into a pension fund.
- Managed by PFRDA-registered fund managers.
- Invested in Government Bonds, Corporate Debentures, and Equities.
- Market-Linked Returns: Corpus grows with investment performance.
- Defined Contribution Scheme: No fixed benefit; wealth depends on contributions and returns.
Models under NPS
- All Citizen Model – For voluntary participation by any Indian citizen.
- Government Sector Model – Mandatory for Central & State Government employees joining service after 1 Jan 2004.
- Corporate Model – For employees through employer–employee relationship.
- Atal Pension Yojana (APY) – Targeted at workers in the unorganised sector (regulated by PFRDA).
Eligibility Conditions
- Must be an Indian citizen (resident or non-resident).
- Age: 18 to 65 years at the time of registration.
- Must comply with KYC norms (submission of ID and address proofs).
- Application through Points of Presence (PoP/PoP-SP) or online platforms.
Government Model under NPS
Mandatory for:
- All Central Government employees who joined service on or after 1 January 2004, except Armed Forces.
- Employees of Central Autonomous Bodies joining after 1 January 2004.
Contributions:
- Employee contributes 10% of salary + DA,
- Government contributes 14% (as per revised norms).
About PFRDA (Pension Fund Regulatory and Development Authority)
| Aspect | Details |
| Established | Initially in 2003 (via executive order), Statutory status in 2014 under PFRDA Act, 2013 |
| Headquarters | New Delhi |
| Parent Ministry | Ministry of Finance, Government of India |
| Jurisdiction | Regulates and promotes pension schemes for public and private sectors |
| Objective | To promote old-age income security through regulated pension systems |
Composition (As per Section 4 of PFRDA Act, 2013)
- Chairperson
- Three Whole-time Members
- Three Part-time Members: Appointed by the Central Government, from individuals with expertise in economics, finance, or law.
Functions of PFRDA
Regulation & Supervision:
- Regulates National Pension System (NPS) and other pension schemes.
Subscriber Protection:
- Protects interests of NPS subscribers.
Registration & Regulation of Intermediaries:
- Oversees NPS Trust, Central Recordkeeping Agency (CRA), Pension Funds, Custodians, Trustee Banks, etc.
Education & Awareness:
- Conducts financial literacy campaigns and pension education initiatives.
Scheme Approval & Investment Norms:
- Approves pension schemes and issues investment guidelines.
Cost Regulation:
- Ensures low-cost administration and efficient fund management.
Grievance Redressal:
- Strengthens subscriber grievance mechanisms.
Dispute Resolution:
- Adjudicates intermediary and subscriber disputes.
Unified Pension Scheme (UPS):
- Recently launched framework to harmonize pension regulations under NPS (2025).
Unified Pension Scheme (UPS), 2025
- A regulatory framework introduced by PFRDA for operationalising a unified, flexible pension ecosystem under NPS.
- Ensures greater portability, flexibility, and transparency across all pension models.