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Plan to introduce corporate NPS?

Employers in India are increasingly adopting the National Pension System. We lay out a few ways to get started.

A recent WTW survey found that nearly 60% of private sector employees in India feel that they aren’t saving enough for retirement. In addition, almost a third feels that their situation is in fact worsening.

According to a recent WTW survey, nearly 60% of private sector employees in India feel that they aren’t saving enough for retirement.
Retirement readiness in India – The employee perspective

Source: 2019 Global Benefits Attitudes Survey, India

Leading employers are looking to help their workforce close this savings gap, and many are increasingly turning to the National Pension System (NPS) to do so. According to the WTW 2021/22 State of Retirement Benefits in India survey, over 70% of employers have either implemented the corporate model of the NPS or are in the process of implementing it. Data from the Pension Fund Regulatory and Development Authority (PFRDA) shows that corporate membership has grown steadily over the last few years to about 1.4 million subscribers currently.

According to PFRDA, NPS has seen a steady growth in subscribers and assets under management.
NPS growth rate

Source: PFRDA

We expect the NPS to continue to gain popularity among employees as well as employers. It’s another way to bridge the gap between existing retirement programmes in the Indian private sector and what employees feel they will actually need to retire securely.

However, implementing the NPS can seem daunting to many employers. We can help.

What is the NPS?

The NPS is a voluntary, defined contribution (DC) retirement savings plan that enables subscribers to supplement their retirement benefits savings over and above mandatory plans. Individuals can subscribe to the NPS in an individual capacity or through employers who can facilitate monthly contributions directly through payroll.

The Pension Fund Regulatory and Development Authority (PFRDA) regulates the functioning of the NPS as well as the various intermediaries that operate within its architecture. It also proactively updates the plan design based on the feedback it receives from various stakeholders, including employers and subscribers.

The NPS benefits from a simple design which enables individual subscribers to remain in control of their savings despite moving jobs or locations, and even during career breaks. Some of the key benefits of NPS include:


Single, lifelong account via Permanent Retirement Account Number, or PRAN


Ease of transferring account across job sectors

Ease of access

Web-enabled access to online account

Safe investment

Programme regulated by the PFRDA

Flexible choices

Complete autonomy over choice of contribution amount, investment strategy, providers, exit / retirement age, and timing of proceeds

Tax savings

Guaranteed tax breaks on contributions and investment returns


One of the lowest-cost pension products in India

Why WTW?

We have leveraged our expertise in NPS to help several organisations successfully roll out the benefit to their employees. Based on our expertise and experience in the area, we can provide end-to-end implementation and ongoing support to our clients.

Our 5-step approach to NPS implementation

  1. 01

    NPS feasibility

    By assessing the feasibility of introducing the NPS to employees, you will be able to make an informed decision. If you decide to proceed, WTW can help you finalise the plan design, create a high-level project timeline and define the roles and responsibilities of all relevant stakeholders.

  2. 02

    Plan design

    The NPS has a well-defined architecture and the elements of customisation are limited to that extent. Based on our experience and access to market data, we can help you choose a plan design that is in step with your needs.

  3. 03

    Project management

    WTW is independent of the NPS, which allows us to offer unbiased, practical and holistic implementation solutions to our clients. Further, we offer end-to-end project management support that covers all relevant aspects pertaining to implementation, including stakeholder alignment.

  4. 04

    Vendor selection

    WTW has strong working relationships with all the key providers, also called Point of Presence (POP), within the NPS space. We can leverage this experience as well as our in-depth knowledge of the POP’s pre-defined responsibilities to help you identify and appoint the most suitable implementation partner.

  5. 05

    Employee communication

    We have a proven track record in helping companies boost enrollment rates through highly tailored employee engagement strategies. Based on your needs and specifications, our communication team can leverage various communication channels and formats – both digital and print - to promote awareness among employees about the NPS and how it works.

The right approach makes all the difference

Plan to introduce corporate NPS?

Here are some factors you should be mindful of when you finalise the approach to steer your implementation plans.

Contact us