Para 13 — NPS

Two Tiers System 13. The subscriber to the scheme will have Tier-I and also have option to open another account Tier-II. Both tier-I (Retirement/Pension Account) and Tier II (Savings/Investment Account) are pure retirement savings products. Tier-I is a non-withdrawable account while Tier-II is a withdrawable account to meet financial contingencies. Government servants to make a contribution of 10% of his basic pay (i.e Level Pay) plus Dearness Allowance, every month. From 01.04.2019, 14% contribution is made by the Government. In case a subscriber is posted in Foreign Service the contribution is to be made based on presumptive pay, i.e. the pay she would have earned had she continued in her parent office, however in case of deputation, the subscription would be based on the deputation pay. For an employee under suspension, the subscription is based on the subsistence allowance (it is as per option of the subscriber.