Q. Consider the following statements with reference to New Pension Scheme (NPS):
1.Under the NPS, pension of government employees is fixed at 50 percent of the last drawn basic pay.
2.NPS is a participatory scheme where employees contribute to their pension amount from their salaries with matching contribution from the government.
Select the correct statement using the codes given below:

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B
Notes:

Explanation –

Statement 1 is incorrect. Under the NPS, the pension benefit is determined by factors such as the amount of contribution made, the age of joining, the type of investment and the income drawn from that investment. It is not fixed.

Statement 2 is correct. NPS is a participatory scheme where employees contribute to their pension amount from their salaries, with matching contribution from the government.

Source: FORUMIAS

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