21 May, 2022


About NPS Trust

National Pension System Trust (NPST) was established by PFRDA as per the provisions of the Indian Trusts Act of 1882 
for taking care of the assets and funds under the NPS in the best interest of the subscribers. 
The powers, functions and duties of NPS Trust are laid down under the PFRDA (National Pension System Trust) Regulations 2015, 
besides the provisions of the Trust deed dated 27.02.2008.

NPS Trust is the registered owner of all assets under the NPS architecture which is held for the benefit of the subscribers under NPS. 
The securities are purchased by Pension Funds on behalf of, and in the name of the Trustees, 
however individual NPS subscriber remain beneficial owner of the securities, assets and funds. 
NPS Trust, under the NPS Trust regulations, is responsible for monitoring the operational and functional activities of NPS intermediaries’ viz. 
custodian, Pension Funds, Trustee Bank, Central Recordkeeping Agency, Point of Presence, 
Aggregators and that of IRDAI registered Annuity Service Providers (empanelled with PFRDA) and also for providing directions/advisory to PF(s) for protecting 
the interest of subscribers, ensuring compliance through audit by Independent Auditors, and Performance review of Pension Funds etc.

What is NPS

National Pension System (NPS) is a voluntary, defined contribution retirement savings scheme designed 
to enable the subscribers to make optimum decisions regarding their future through systematic savings during their working life. 
NPS seeks to inculcate the habit of saving for retirement amongst the citizens. 
It is an attempt towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India.

Under NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated professional fund managers as per 
the approved investment guidelines in to the diversified portfolios comprising of Government Bonds, Bills, Corporate Debentures and Shares. 
These contributions would grow and accumulate over the years, depending on the returns earned on the investment made.

​At the time of normal exit from NPS, the subscribers may use the accumulated pension wealth under the scheme to purchase a life annuity from a 
PFRDA empaneled Life Insurance Company apart from withdrawing a part of the accumulated pension wealth as lump-sum, if they choose so.

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