NPS rule changes explained in 10 points

The Union Cabinet recently approved a host of changes in NPS or National Pension Scheme. Apart from higher government contribution for central government employees covered under NPS, the Cabinet also made withdrawal from NPS completely tax-free. 4) For central government employees covered under NPS, the government’s contribution towards the pension scheme has been increased from the existing 10% to 14%. This will increase the eventual accumulated corpus of all central government employees covered under NPS. 6) Central government employees covered under NPS will get more flexibility in terms of choice of pension fund managers.