UPSC Prelims Practice Questions — PFRDA Announces Expert Committee to Develop Framework for Assured Payouts under National Pension System (NPS)

Q1. PFRDA constituted an expert committee in January 2026 to develop the framework for assured payouts under the National Pension System. Who heads (chairs) this committee?

  • A. Dr. M. S. Sahoo, founder of Sahoo Regulatory Chambers and former Chairperson of the Insolvency and Bankruptcy Board of India
  • B. Deepak Mohanty, Chairperson of the PFRDA
  • C. Nandan Nilekani, former Chairman of the Unique Identification Authority of India
  • D. Bibek Debroy, economist and former Chairman of the Economic Advisory Council to the PM

Q2. The Pension Fund Regulatory and Development Authority (PFRDA) functions under which arm of the Union Government?

  • A. Department of Financial Services, Ministry of Finance
  • B. Department of Economic Affairs, Ministry of Finance
  • C. Ministry of Labour and Employment
  • D. Department of Personnel and Training, Ministry of Personnel, Public Grievances and Pensions

Q3. PFRDA was first set up as an interim, non-statutory regulator in 2003 and was subsequently accorded statutory status by its enabling Act. How many years elapsed between its interim establishment and the enactment of the PFRDA Act that gave it statutory backing?

  • A. 5 years
  • B. 8 years
  • C. 10 years
  • D. 13 years

Q4. With reference to the coverage of the National Pension System (NPS) at successive stages, consider the following statements: 1. NPS was introduced for new recruits to central-government services (except the armed forces) joining on or after 1 January 2004. 2. NPS was extended to all Indian citizens on a voluntary basis from 1 May 2009. 3. Unlike central-government employees, corporate-sector employees were brought under NPS only after 2015. Which of the statements given above is/are correct?

  1. NPS was introduced for new recruits to central-government services (except the armed forces) joining on or after 1 January 2004.
  2. NPS was extended to all Indian citizens on a voluntary basis from 1 May 2009.
  3. Unlike central-government employees, corporate-sector employees were brought under NPS only after 2015.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q5. Which category of subscribers was the FIRST to be brought under the National Pension System when it commenced on 1 January 2004?

  • A. Newly recruited central-government employees (other than the armed forces)
  • B. All Indian citizens on a voluntary basis
  • C. Employees of the corporate sector
  • D. Non-Resident Indians and Overseas Citizens of India

Q6. With reference to the Unified Pension Scheme (UPS) available as an option under NPS for central-government employees, consider the following features: 1. An assured pension of 50% of the average basic pay of the last 12 months for a minimum qualifying service of 25 years. 2. A minimum guaranteed payout of Rs 10,000 per month after 10 years of qualifying service. 3. It is entirely non-contributory, requiring no contribution from the employee. 4. Inflation/dearness indexation of the assured pension. Which of the above is/are NOT correctly described as a feature of UPS?

  1. An assured pension of 50% of the average basic pay of the last 12 months for a minimum qualifying service of 25 years.
  2. A minimum guaranteed payout of Rs 10,000 per month after 10 years of qualifying service.
  3. It is entirely non-contributory, requiring no contribution from the employee.
  4. Inflation/dearness indexation of the assured pension.
  • A. 1 only
  • B. 3 only
  • C. 2 and 4
  • D. 1 and 3

Q7. Under the Unified Pension Scheme, the full assured pension is fixed at 50% of the average basic pay of the last 12 months — the highest assured rate obtainable. What is the minimum qualifying service that must be completed to draw this full assured pension?

  • A. 10 years
  • B. 20 years
  • C. 25 years
  • D. 33 years

Q8. Among the three pension schemes proposed in PFRDA's 30 September 2025 consultation paper, which one is specifically designed to provide a guaranteed pension amount that is periodically adjusted for inflation on the basis of CPI-IW?

  • A. Pension Scheme-2 (Assured Benefit)
  • B. Pension Scheme-1 (Non-Assured, Flexible Decumulation)
  • C. Pension Scheme-3 (Assured through Pension Credits)
  • D. Pension Scheme-1 combined with a mandatory annuity

Q9. In PFRDA's consultation paper on assured and flexible payouts, the term 'decumulation phase' refers to:

  • A. The post-retirement phase during which the accumulated pension corpus is drawn down and paid out to the subscriber
  • B. The working-life phase during which contributions are accumulated and compounded into a corpus
  • C. The process by which Annuity Service Providers are empanelled and de-empanelled by the regulator
  • D. The mandatory lock-in period before which no partial withdrawal from Tier-I is permitted

Q10. The shift of new central-government employees from a defined-benefit pension (the Old Pension Scheme) to a defined-contribution, market-linked model under NPS applied to recruits joining service on or after which date?

  • A. 1 January 2004
  • B. 1 May 2009
  • C. 1 April 2004
  • D. 1 April 2025

Q11. PFRDA frames its NPS reforms, including the new assured-payout framework, within the Viksit Bharat @2047 vision. Which statutory body is charged with regulating and operationalising these NPS pension reforms?

  • A. The Pension Fund Regulatory and Development Authority (PFRDA)
  • B. The Employees' Provident Fund Organisation (EPFO)
  • C. NITI Aayog
  • D. The Insurance Regulatory and Development Authority of India (IRDAI)