New Pension System was notified by samiti last week and employees who were appointed prior to 1/4/2004 should exercise their option with in three months. Many employees are confused about the system as NPS is a noval product. All the senior employees got disappointed as they could not get GOI pension. Majority lack a clear understanding of the NPS and its architecture. In order to decide the pros and cons one must understand the product first. I think you can get all your doubts cleared at pension fund regulators site
There is one important positive of NPS. In old system 10 per cent of basic pay was the contribution from the employee and the employer. Under NPS, both contribute 10 per cent of Basic Pay+Grade Pay+Dearness Allowance. For an employee who is two or three decades away from retirement, the contribution from Samiti will be far higher than that of Samiti's contribution under CPF as it is restricted to 10 per cent of Basic Pay and Grade Pay and Dearness Allowance is not considered.. Please read my post:"how much pension you would get: for further information and links for calculations.