UPSC Prelims 2017 Q29: Indian Economy – Human Development, Poverty & Employment Schemes
Who among the following can join the National Pension System (NPS)?
- (a) Resident Indian citizens only
- (b) Persons of age from 21 to 55 only
- (c) All State Government employees joining the services after the date of notification by the respective State Governments
- (d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004
Answer: (c) All State Government employees joining the services after the date of notification by the respective State Governments
Explanation
Who can join the National Pension System (NPS)?
| Option | Verdict | Fact |
|---|---|---|
| (a) Resident Indian citizens only | Incorrect | NRIs can also join |
| (b) Ages 21 to 55 only | Incorrect | The entry age is 18 to 70 (originally 18 to 60) |
| (c) State Government employees joining after the State's notification | Correct | NPS is mandatory for them once their State notifies it |
| (d) All Central employees including the Armed Forces from 1 April 2004 | Incorrect | NPS covers Central employees from 1 January 2004, but the Armed Forces are excluded |
NPS basics:
| Feature | Detail |
|---|---|
| Regulator | PFRDA |
| Launched | 2004 for Central employees; 2009 for all citizens |
Answer: (c) All State Government employees joining the services after the date of notification by the respective State Governments.
Why each option is right or wrong
- (a) Incorrect. NRIs can also open NPS accounts, so it is not resident Indians only.
- (b) Incorrect. NPS is open from age 18, now up to 70, not 21-55.
- (c) CORRECT. NPS applies to State Government employees joining after their State's notification.
- (d) Incorrect. The Armed Forces are outside NPS, and the date is 1 January 2004.
Key point
NPS (PFRDA): mandatory for Central employees from 1 Jan 2004 (not Armed Forces) and for State employees after State notification; open to citizens and NRIs aged 18-70.
Remember
NPS: no Armed Forces; State staff after notification; NRIs allowed.
Common mistakes
- Thinking the Armed Forces are covered by NPS; they still have the old pension.
- Recalling the wrong start date; it is 1 January 2004.
- Assuming NRIs cannot join the National Pension System.
Exam tip
In eligibility questions, watch for 'only' and 'all'. Both often make an option wrong.
Sources
- Pension Fund Regulatory and Development Authority — NPS eligibility
- Ministry of Finance — Notification on NPS (22 December 2003)