  India is the largest democracy in the world and has recently surpassed China
to be the highest-populated country, with an estimated 1.425 billion
(approximately 18% of the world population). Moreover, India's elderly
population is projected to increase to 138 million by 2035. Indian economy is
already reeling under the pressure of exorbitant pension liabilities of the
government for existing pensioners. As such, India has introduced a National
Pension System (NPS), which is a Defined Contribution Scheme for employees
joining government service on or after 1st January 2004, bidding adieu to the
age-old, tried and tested Old Pension System (OPS) which is a Direct Benefit
Scheme, in vogue in India since the British Raj. This is an epoch-making move
by the government as it seeks to inculcate Disciplined Saving among the people
while significantly reducing the government burden by reducing the Pension
Liabilities of the Central and State Governments. This paper aims to analyse
various features and intricacies of the NPS and address the claims of various
stakeholders like the Central Government, State Government, Employees,
Pensioners, etc. In light of the above, and taking cognisance of the fact that
many states such as Rajasthan, Chattisgarh, Jharkhand, etc, have exited the NPS
scheme and have sought back their share of NPS employee and employer
contribution, this study is relevant to address the current economic and fiscal
issues of India to propel towards the ambitious goal of becoming a $ 5 trillion
dollar economy by 2025.
  Keywords: Old Pension Scheme (OPS), National Pension System (NPS), Direct
Benefit Scheme, Defined Contribution Scheme, Pension Liabilities.
