Para 2 — NPS

BURDEN OF PENSION SCHEME

2. The Pension Scheme as existed prior to 01 Jan 2004 has been a system of ‘Defined Benefit Pension Scheme’, which provides a monthly amount as pension and a lumpsum amount as Gratuity to the employee. A portion of the pension could be commuted and drawn as a lumpsum amount at the time of retirement. In the case of death of the employee, family pension would be available to the spouse for life and after the death of the spouse to the children, subject to certain conditions.