NPS stands for National Pension Scheme of India. It is a retirement planning tool launched by the Government of India in 2004. NPS offers benefits like tax-saving, corpus formation, and annuity to account holders.
HR Pension is a type of pension paid out by an employer to their employees. It stands for “Hybrid Retirement Plan” and usually refers to a pension with both a defined contribution plan and a defined benefit plan. A defined contribution plan is where the employer contributes a set amount of money to the employee’s retirement account. A defined benefit plan is where the employer agrees to pay out a certain amount of money to the employee each month.
The key difference between HR Pension and other pensions is that employees can take their HR Pension with them when they leave their job. This contrasts with traditional pensions, which are usually only available to employees who have retired from the company.
It offers several benefits to subscribers, making it an attractive investment option. Some of the key benefits of investing in the NPS include: