Government NPS: Open Government NPS Account Online

What is
Government NPS?

The National Pension System (NPS) for Government employees is a defined-contribution scheme where both employee and employer contribute towards a secure future. Employees contribute 10% of their salary (Basic + DA) monthly, matched by a 14% Government contribution — together deposited into the subscriber's Permanent Retirement Account Number (PRAN).

These funds are professionally managed by registered Pension Fund Managers and invested as per the subscriber's chosen option, growing steadily through market-linked returns

Tax benefits under
Government NPS

Government's contribution

Contribution made by the Govt. for the employees is exempted undersection 80 CCD(2). This rebate is over and above 80 CCE limit of ₹1.50 lakhs

Employee's contribution

Employee’s own contribution is eligible for tax deduction under section 80 CCD(1) up to 10% of salary (Basic + DA). This is within the overall ceiling of ₹ 1.5 lakhs under Sec. 80 CCE of the Income Tax Act.

Voluntary contribution

Employee can voluntarily invest an additional amount of ₹ 50,000 (or more) to the NPS Tier I account and claim tax deduction on the same under section 80 CCD1(B), subject to a maximum of ₹ 50,000.

Tier II Tax Saving Scheme

Central Govt. NPS subscribers are allowed to claim tax benefits for self-contributions made to Tier II Tax Saving Scheme (TTS). Under this scheme the contributions will be locked for 3 years. This is within the overall ceiling of ₹ 1.5 lakhs under Sec. 80 CCE of the Income Tax Act.

Choose your
investment style

Your Contribution, Your Choice. Select investment schemes that align with your risk appetite and long-term goals.

Scheme	Applicable for	Description	Equity Cap
Default	State + Central	Managed by SBI, LIC and UTI Pension	75% debt, 25% equity
Active Choice	State + Central	100% allocation towards Government securities	0%
LC 25	State + Central	Conservative life-cycle	25% tapering to 5% by age 55
LC 50	State + Central	Moderate life-cycle	50% tapering to 10% by age 55
LC 75	Only Central	High life-cycle	75% tapering to 15% by age 55
LC Aggressive	Only Central	Aggressive life-cycle	50% till age 45 → 35% by age 55

Why DSP?

160+ years legacy

DSP Group, established institution
Value Investing

The timeless principle of investing
Invest for Good

For the Life you've

Want to change your
Pension Fund Manager?

Know how to

Proceed

01. Login to Protean app or website using your PRAN.
02. Select ‘Change Scheme Preference’ under ‘Transact Online’.
03. Select the Tier type as ‘Tier I’ and click submit.
04. Select ‘Auto Choice’ Scheme and further select LC Aggressive / LC75 / LC50 / LC25 as per your preference.
05. Under PFM, select DSP Pension Fund Managers Pvt. Ltd. and click Submit.

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Frequently Asked Questions on Government NPS?

Here are some frequently asked questions about Government NPS

Account Maintenance

Government NPS is a defined contribution pension scheme mandatorily applicable to Central Government employees joining service on or after January 1, 2004. It replaced the Old Pension Scheme (OPS) and is regulated by PFRDA.

All Central Government civilian employees (except armed forces) joining on or after January 1, 2004 are mandatorily covered. Several State Governments have also adopted NPS for their employees.

The employee contributes 10% of Basic + DA, and the government contributes 14% to the employee's NPS account every month. These funds are invested across asset classes and accumulate over the service period to build a retirement corpus.

Employee contributions up to 10% of Basic + DA are deductible under Section 80CCD(1), and an additional ₹50,000 deduction is available under Section 80CCD(1B). The employer's 14% contribution is also tax-exempt under Section 80CCD(2)

Nodal officer can update the following requests of the Subscriber:

Change in Personal details including Bank details
Change in Employment details
Change in Nomination details
Reissue of I-PIN and T-PIN
Reprint of PRAN Card
Update PAN and Aadhar details
Print Statement of Transaction of a Subscriber associated with it on request.

Yes, the NPS account (identified by a unique PRAN) is fully portable across all government departments, ministries, and locations. There is no need to open a new account upon transfer or change of posting.

Scheme Preference & Investment Options

Yes, government employees can switch their Pension Fund Manager once per year as per PFRDA guidelines. The switch can be done online through the CRA (Central Recordkeeping Agency) portal.

Government employees are by default placed under the Government scheme with a defined asset allocation, but they can opt for Active Choice to customize their fund allocation. Switching between Active and Auto choice is permitted once a year.

The Subscriber can select any one of the following investment schemes:

Scheme G: 100% of contribution will be invested in Government Bonds and related instruments.
Scheme LC 25: It is the Life cycle fund where the Cap to Equity investments starts at 25% of the total assetand decreases after age 35.
Scheme LC 50: It is the Life cycle fund where the Cap to Equity investments starts at50% of the total assetand decreases after age 35

For employees of central Government there are two more investment options

Scheme LC 75:It is the Life cycle fund where the Cap to Equity investments starts at75% of the total assetand decreases after age 35.
Balanced LifeCycle: It is the Life cycle fund where the Cap to Equity investments starts at50% of the total assetand decreases after age 45.

The Subscriber can change Scheme Preference online through his/her NPS account log-in. The Subscriber can follow the simple steps as given below:

Go to his/ her NPS account and log-in.
Click on sub menu "Scheme Preference Change" under main menu "Transaction".
Select Tier type and change the Scheme Preference as you intended to do.

Yes, a Subscriber is allowed to select the Pension Fund and Investment Pattern as per his/her choice at the time of registration under NPS. The Subscriber is required to provide the relevant details in the Subscriber Registration Form (CSRF).

Yes, you have the option to change your Pension Fund Manager. At present, the Subscriber can change the Pension Fund Manager once in a Financial Year.

Exit / Withdrawal

Yes, partial withdrawals of up to 25% of the employee's own contributions are allowed after completing 3 years in NPS. Withdrawals are permitted only for specific purposes like medical treatment, children's education, marriage, or home purchase.

At retirement, the subscriber can withdraw up to 60% of the corpus as a tax-free lump sum and must use at least 40% to purchase an annuity for regular pension income. If the total corpus is ₹8 lakh or less, the entire amount can be withdrawn as a lump sum.

The 60% lump sum withdrawal at maturity is completely tax-free, and the 40% used to purchase an annuity is also exempt at the time of investment. However, the monthly annuity/pension income received thereafter is taxable as per the subscriber's income tax slab.

Online Withdrawal request can be initiated by the Subscribers using I-PIN provided to them. Such requests need to be verified and authorized by the nodal office.

Upon Normal Superannuation: At least 40% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing for monthly pension to the Subscriber and the balance is paid as lumpsum to the subscriber.

In case the total corpus in the account is less than or equal to Rs.8 lakh as on the Date of Retirement, the Subscriber can avail the option of complete Withdrawal.

Upon Death: At least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity, providing for monthly pension to the Spouse and the balance is paid as lumpsum to the nominee/legal heir.

In case the total corpus in the account is less than or equal to Rs.8 lakh as on the Date of Death of the Subscriber (Government sector), nominee/legal heir can avail the option of complete Withdrawal.

Further, if family member opts for family pension, as per the Regulations, all the accumulated pension wealth shall be transferred to the bank account of the Nodal Office for further settlement as per Government directives.

Pre-mature Exit: At least 80% of the accumulated pension wealth of the Subscriber has to be utilized for purchase of an Annuity providing the monthly pension to the Subscriber and the balance is paid as a lumpsum to the Subscriber.

In case the total corpus in the account is less than or equal to Rs.8 lakh as on the Date of Resignation, the Subscriber can avail the option of complete Withdrawal.

In the context of NPS, voluntary retirement is treated as pre-mature Exit.

The 60% lump sum withdrawal at maturity is completely tax-free, and the 40% used to purchase an annuity is also exempt at the time of investment. However, the monthly annuity/pension income received thereafter is taxable as per the subscriber's income tax slab.