Lok Sabha Question No. 3504 (UNSTARRED), answered on 2021-12-20
Subject: National Pension Scheme
Ministry: FINANCE
Asked by: Omprakash Bhupalsinh alias Pawan Rajenimbalkar, Gajanan Chandrakant Kirtikar, Anurag Sharma, Gautham Sigamani Pon, Dhanush M Kumar, Ganesan Selvam, Rebati Tripura, C.N. Annadurai

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES *****

## LOK SABHA UNSTARRED QUESTION NO. 3504 TO BE ANSWERED ON 20 th  DECEMBER, 2021 (MONDAY)/ /AGRAHAYANA 29, 1943 (SAKA)

## NATIONAL PENSION SCHEME

3504. Shri Omprakash Bhupalsinh alias Pawan Rajenimbalkar,

Shri Gajanan Kirtikar,

Shri Anurag Sharma,

Shri Gautham Sigamani Pon,

Shri Dhanush M. Kumar,

Shri Selvam G.,

Shri Rebati Tripura,

Shri C.N. Annadurai:

## Will the Minister of FINANCE be pleased to state:

- (a) the main objective of launching National Pension Scheme(NPS) along with the number of persons enrolled under the scheme since its inception, State-wise;
- (b) whether the Government has achieved the objective of launching NPS and if so, the details thereof and if not, the corrective steps taken by the Government in this regard;
- (c) whether this  scheme has  also  been  implemented  in  all  States  and  if  so,  the  details  of  the services provided in Maharashtra and Tamil Nadu States so far; and
- (d) whether  the  Government  proposes  to  enhance  the  contribution  under  NPS  to  make  the retirement  income  scheme  more  attractive  and  if  so,  the  details  thereof  and  if  not,  the corrective steps taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (DR BHAGWAT KARAD)

(a)  and  (b)  The  National  Pension  System  (NPS)  was  introduced  by  the  Government  of  India  to replace  the  defined  benefit  pension  system  by  defined  contribution  pension  scheme  in  order  to provide old age income security in a fiscally sustainable manner and to channelize the small savings into productive sectors of the economy through prudential investments. NPS was made mandatory for all new recruits to the Central Government service from 1st January, 2004, (except the armed forces in the first stage) and has also been rolled out for all citizens with effect from 1st May, 2009, on voluntary basis.

The Government of India has taken a number of steps for streamlining NPS for Central Government employees and is committed to protect the interests of the subscribers keeping in view the concerns of NPS subscribers. These include enhancement of Government's contribution from the earlier 10% to 14%, freedom of choice for selection of Pension Funds and pattern of investment to subscribers, payment of compensation for non-deposit or delayed deposit of NPS contributions for any period during 2004-2012, tax exemption under Section 80C and increase in tax exemption limit for lump sum withdrawal on exit from earlier 40% to 60% of the amount due, making the entire withdrawal exempt from income tax.

As per information provided by the Pension Fund Regulatory and Development Authority (PFRDA) the State-wise number of persons enrolled under NPS since inception as on 31.10.2021 is given at Annexure A.

(c) All State Governments (except West Bengal) have notified NPS for their employees. However, as  mentioned  in  reply  to  point  (a)  and  (b)  of  the  question,  NPS  has  also  been  rolled  out  for  all citizens with effect from 1st May, 2009, on voluntary basis. Further, as reported by PFRDA, a total of 6,61,387 subscribers from the State of Tamil Nadu and 15,12,223 subscribers from the State of Maharashtra have joined NPS as on 31.10.2021. The total Assets Under Management (AUM) for the  State  of  Tamil  Nadu  and  State  of  Maharashtra  are  Rs.  3964.35  cr  and  Rs.  89534.39  cr respectively.

(d)  As mentioned in reply to part (a) and (b) of the question above, the Government of India has, inter alia, enhanced the monthly contribution of Government from 10% of Pay + DA to 14% of Pay + DA, for the Central Government employees covered under NPS.

********

The State-wise number of persons enrolled under National Pension System (NPS) since inception as on 31.10.2021

| S. No.   | Name of State                      | Number of enrolments   |
|----------|------------------------------------|------------------------|
| 1        | Andaman &Nicobar Islands           | 14,416                 |
| 2        | Andhra Pradesh                     | 9,05,228               |
| 3        | Arunachal Pradesh                  | 35,857                 |
| 4        | Assam                              | 4,82,569               |
| 5        | Bihar                              | 6,69,988               |
| 6        | Chandigarh                         | 37,401                 |
| 7        | Chhattisgarh                       | 5,99,943               |
| 8        | Dadra and Nagar Haveli &Daman &Diu | 4,819                  |
| 9        | Delhi                              | 4,46,697               |
| 10       | Goa                                | 56,883                 |
| 11       | Gujarat                            | 7,26,934               |
| 12       | Haryana                            | 4,68,979               |
| 13       | Himachal Pradesh                   | 1,71,954               |
| 14       | Jammu &Kashmir                     | 2,32,033               |
| 15       | Jharkhand                          | 3,60,299               |
| 16       | Karnataka                          | 13,69,961              |
| 17       | Kerala                             | 6,55,243               |
| 18       | Ladakh                             | 264                    |
| 19       | Lakhswadeep                        | 2,189                  |
| 20       | Madhya Pradesh                     | 8,96,692               |
| 21       | Maharashtra                        | 15,12,223              |
| 22       | Manipur                            | 68,089                 |
| 23       | Meghalaya                          | 31,842                 |
| 24       | Mizoram                            | 13,723                 |
| 25       | Nagaland                           | 49,393                 |
| 26       | Odisha                             | 4,89,128               |
| 27       | Pondicherry                        | 23,959                 |
| 28       | Punjab                             | 3,43,413               |
| 29       | Rajasthan                          | 9,53,230               |
| 30       | Sikkim                             | 28,378                 |
| 31       | Tamil Nadu                         | 6,61,387               |
| 32       | Telangana                          | 1,87,679               |
| 33       | Tripura                            | 54,156                 |
| 34       | Uttar Pradesh                      | 16,73,404              |
| 35       | Uttarakhand                        | 1,79,131               |
| 36       | West Bengal                        | 6,18,200               |
| 37       | Others*                            | 41,198                 |
|          | Total                              | 1,50,66,882            |

## Source: PFRDA

*Others include Defence, Non Resident Indian subscribers, and Non Individual Retirement Account subscribers.