How is the new pension scheme different from the old pension scheme?

In the OPS, pension is pre-determined, while in the NPS, pension is a market-linked savings product.

While OPS is not a subject to the taxation system, the NPS is 100% taxable.

Under both, the OPS and the NPS, retired employees received 50% of their last drawn salary as monthly pensions.

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Under the OPS, retired employees received 50% of their last drawn salary as monthly pensions. However, NPS is a contributory pension scheme under which employees contribute 10% of their salary (basic + dearness allowance). The government contributes 14% towards the employees’ NPS accounts.
Old Pension Scheme (OPS) income is not a subject to the taxation system. The New Pension Scheme (NPS) gives a retirement pension fund that is 60% tax-free upon redemption while the remaining is 40%, which has to be invested in annuities that are 100% taxable.
In the OPS, it’s predetermined how much pension an employee will get linked to her last drawn salary and length of service. NPS, on the other hand, is a market-linked savings product that has a defined contribution.
National Pension Scheme (NPS) is a voluntary and long-term retirement investment plan administered by the Pension Fund Regulatory and Development Authority (PFRDA), Ministry of Finance, Government of India.
The Old Pension Scheme was discontinued in 2004, however, it guaranteed life-long income after retirement.

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Under the OPS, retired employees received 50% of their last drawn salary as monthly pensions. However, NPS is a contributory pension scheme under which employees contribute 10% of their salary (basic + dearness allowance). The government contributes 14% towards the employees’ NPS accounts.
Old Pension Scheme (OPS) income is not a subject to the taxation system. The New Pension Scheme (NPS) gives a retirement pension fund that is 60% tax-free upon redemption while the remaining is 40%, which has to be invested in annuities that are 100% taxable.
In the OPS, it’s predetermined how much pension an employee will get linked to her last drawn salary and length of service. NPS, on the other hand, is a market-linked savings product that has a defined contribution.
National Pension Scheme (NPS) is a voluntary and long-term retirement investment plan administered by the Pension Fund Regulatory and Development Authority (PFRDA), Ministry of Finance, Government of India.
The Old Pension Scheme was discontinued in 2004, however, it guaranteed life-long income after retirement.

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