Please provide me the new Pension Scheme of Defined Contribution Pension Scheme (DCPS) and also provide me the importance and the Salient Features of new Pension Scheme of Defined Contribution Pension Scheme (DCPS)

The salient features of the New DCPS (Defined Contribution Pension Scheme) as mentioned by Government of India are as follows:

• The New Pension Scheme works on defined contribution basis and has 2 tiers Tier-I and II. Contribution to Tier-I is mandatory for all Government servants joining Government service on or after 1-1-2004 (except the armed forces in the first stage), whereas Tier-II is optional and at the discretion of Government servants.
• In Tier-I, a Government servant have to make a contribution of 10% of basic pay plus DA, which deducted from salary bill every month by the PAO concerned. The Government make an equal matching contribution. However, there is no contribution from the Government in respect of individuals who are not Government employees.
• Tier-I contributions (and the investment returns) are kept in a non-with -drawable Pension Tier-I Account. Tier-II contributions are kept in a separate account that is with - drawable at the option of the Government servant. Government does not make any contribution to Tier-II account.
• The existing provisions of Defined Benefit Pension and GPF are not available to the new recruits in the central Government service, i.e. to the Government servants joining Government service on or after 1-1-2004.

DCPS New Pension Scheme