Because the pension amount was pre-defined — typically 50% of last drawn pay — regardless of how much was contributed or saved during service. The government bore the entire financial risk.
Source: NPS Rule 2
Why was the old scheme called 'Defined Benefit'?
Related Questions
What happens if there is no eligible family member at the time of a subscriber's death?
What if my appointment order was dated December 2003 but I joined in February 2004 — which scheme applies?
Is the NPS corpus guaranteed?
Why is 40% of the corpus locked into an annuity?
Is there a penalty for not contributing to Tier-II in a year?
This answer is for informational purposes only and does not constitute legal advice. Always refer to the original rules and consult competent authorities for official interpretation.