Pension Reforms — Policy Reforms

Entry	Year	Description	Impact
PFRDA Act Amendment	2019	Enhanced employer contribution from 10% to 14% of basic salary for NPS subscribers, bringing parity with private sector provident fund contributions. Introduced systematic withdrawal plan as alternative to mandatory annuitization, providing greater flexibility to retirees.	Increased retirement corpus accumulation and provided more flexible withdrawal options, addressing key employee concerns about NPS rigidity while maintaining the contributory framework.
NPS Rules Amendment	2021	Allowed higher equity exposure up to 75% for subscribers below 35 years, increased from previous 50% limit. Introduced passive investment options and performance benchmarks for fund managers to improve returns and reduce costs.	Enhanced return potential for younger subscribers while maintaining age-appropriate risk profiles, and improved cost efficiency through passive investment options and performance accountability.