NPS returns for State, Central Government Employees in 5, 10 years

With effect from April 1, 2004, the National Pension Scheme took the role of the OPS for central government employees. In accordance with the previous pension plan, retired employees were given monthly pensions equal to 50% of their final drew wages. NPS, on the other hand, is a contributing pension plan in which employees make 10% of their pay (Basic + Dearness Allowance) toward their NPS accounts, with the government making the remaining 14%.

Pension fund managers that have received approval from PFRDA oversee the NPS funds. Under NPS, it is the employee's responsibility to purchase the annuity plan from authorised pension providers. Employees must invest at least 40% of their cumulative corpus into an annuity plan for a monthly pension when they retire. The remainder can be taken out in one lump sum by the employee.

The NPS vs. OPS argument has recently become more political. The National Pension Scheme (NPS), which has been in place since 2004, will be replaced by the Old Pension Scheme (OPS), according to a recent announcement by the Punjab government. A number of other states are experimenting with the idea of going back to OPS.

Even though the discussion may remain for a while, here are some of the key distinctions between OPS and NPS, as well as how those funds have fared over the past five and ten years for employees of state and federal governments.

NPS Central Government Scheme Returns

The average annualised returns of the NPS Scheme (Central Government) have been over 9.4% across different fund managers in 10 years. 

SBI Pension Fund

SBIPF has given a return of 9.48% in 10 years and 9.67% since its inception on 1-08-2008. In the last five years, SBIPF has given a return of 7.89%, according to data on the NPS Trust website. The NAV of SBIPF as on 30 August 2022 was 37.84.

LIC Pension Fund

LICPF has given a return of 9.52% in 10 years and 9.46% since its inception on 1-08-2008. In the last five years, LICPF has given a return of 7.86%, according to data on NPS Trust website. The NAV of LICPF as on 30 August 2022 was 36.83. 

UTI Retirement Solutions (UTIRSL)

UTIRSL has given a return of 9.51% in 10 years and 9.42% since its inception on 1-08-2008. In the last five years, UTIRSL has given a return of 7.83%, according to data on the NPS Trust website. The NAV of UTIRSL as on 30 August 2022 was 36.63. 

NPS State Government Scheme Returns

The annualised average returns of the NPS Scheme (State Government) have been over 9.34% across different fund managers in 10 years. 

SBI Pension Fund

SBIPF has given a return of 9.5% in 10 years and 9.34% since its inception on 25 June 2009. In the last five years, SBIPF has given a return of 7.82%, according to data on the NPS Trust website. The NAV of SBIPF as on 30 August 2022 was 32.47. 

LIC Pension Fund

LICPF has given a return of 9.55% in 10 years and 9.42% since its inception on 25 June 2009. In the last five years, LICPF has given a return of 7.76%, according to data on the NPS Trust website. The NAV of LICPF as on 30 August 2022 was 32.77. 

UTI Retirement Solutions (UTIRSL)

UTIRSL has given a return of 9.51% in 10 years and 9.37% since its inception on 25 June 2009. In the last five years, UTIRSL has given a return of 7.76%, according to data on the NPS Trust website. The NAV of UTIRSL as on 30 August 2022 was 32.60.