Executive Summary: The Government has approved some changes in the NPS such as increased Government contribution, tax benefits, better withdrawal conditions and compensation for delayed payouts towards contribution by the Government. These changes are beneficial to NPS subscribers. 

National Pension Scheme (NPS) is a retirement scheme. It is a defined contribution based pension fund. It is compulsory for Central and State Government employees and optional for other employees.
Employees and employers contribute to their account and the collective fun is invested in equity, government securities, corporate bonds, fixed deposits etc and managed by fund managers. Employees can then withdraw part of their corpus and invest the rest in an annuity product.
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Recently, there were some changes approved and announced for NPS. The image below shows these amendments and their implications –

​The government is trying to make NPS an attractive product which is useful for investors. For more information about NPS, click here.