| Aspect | National Pension System (NPS) | Old Pension Scheme (OPS) |
|---|---|---|
| Retirement Savings | Managed by PFRDA | Traditional pension system |
| Membership | Covers employees who joined after Jan 1, 2004 | Employees who opted for OPS |
| Contributions | Both employees and employers contribute | Only employees contribute |
| Investment | Invested in various asset classes | Not applicable (guaranteed pension) |
| Accumulated Savings | Employees accumulate a corpus over time | Not applicable (pension is predetermined) |
| Retirement Benefit | Partial lump sum withdrawal, annuity purchase | Guaranteed pension for life |
| Annuity Options | Options for systematic withdrawals and annuities | Not applicable (fixed pension amount) |
| Portability | Portable across jobs and locations | Not applicable (linked to specific job) |
| Returns and Risk | Exposure to market risks and returns | Not applicable (fixed pension regardless) |
| Government Liability | Limited to contributions and returns | Full pension liability rests with government |
| Flexibility | More investment options and withdrawal choices | Limited flexibility, fixed pension amount |
| Pension Sustainability | Dependent on market performance | Independent of market fluctuations |
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