Differences between NPS and Old Pension System(NCSRPF)

Differences between NPS and Old pension system

NPS	Old Pension System (NCSRPF)
1. Full form is New Pension Scheme	1. Full form is Non Contributory State Railway Provident Fund
2. Employees who join on or after 01.01.2004 are covered under this scheme	2. Employees who join till 31.03.2004 are covered under this scheme.
3.  Defined Contribution Pension Scheme.  Here Contribution is defined i.e., 10% of Pay + DA.  Unlike Old pension system, here benefit i.e., pension is not defined.   It is based on investment returns along with accumulations until retirement age, annuity type and its levels..	3. Defined Benefit Pension Scheme.  Means Benefit (Pension) is fixed.  That is 50% of last pay is defined as Pension
4. Retirement Gratuity is not available.  But Death Gratuity is available.	4. Retirement Gratuity and Death Gratuity are available
5. Commutation of Pension is not available	5. Commutation up to 40 % is available.  Commuted portion shall be restored after the completion of 15 years.
6. Contribution to NPS is 10 % of Pay + DA	6. Contribution to NCSRPF is 8.33% of Pay only
7. Matching contribution from Employer	7. No matching contribution from Employer.
8. Managing the Funds:  Fund Managers approved by PFRDA - Provident Fund Regulatory Development Authority	8. Managing the Funds:  PF Trust appointed by Govt.
9. Regulator:  PFRDA	9.  No Regulator
10. Loan facility against PF amount is not available.	10. Loan facility against PF amount is available.
11.  At the time of Retirement:  Withdraw 40 % of total amount lying in Account (Employees contribution and Employers matching contribution incl: returns on investments). 60% Amount to be invest in Pension Annuity Schemes in order to get the monthly pension	11. At the time of Retirement, received the whole amount lying in employees PF Account with interest accrued there on.  Monthly pension @50% of last basic pay is provided by Employer
12. No provision of Family Pension.	12. Provision of Family Pension to the family members of deceased employee @ 30% last basic pay by Employer
13. Tax liability:  EET - Exempt, Exempt & Taxable.   Means Exempt on contributions made, Exempt on Accumulation and Taxed on Maturity.	13. Tax liability: EEE - Exempt, Exempt & Exempt.  Means Exempt of tax on Contribution, Accumulation and Maturity also.