“A STUDY ON THE EMPLOYEES AWARENESS TOWARDS

NATIONAL PENSION SCHEME”

Bantwal
DISSERTATION SUBMITTED TO U.G DEPARTMENT OF COMMERCE

SUBMITTED BY
Yashwini (19BCM131)
Chaithanya (19BCM105)
Gunavathi (19BCM109)
Akshitha.M (19BCM103)
Nishmitha.G (19BCM112)
UNDER THE GUIDENCE OF
Mr. Vinay Kumar C
Assistant Professor
DEPARTMENT OF U.G. COMMERCE
SRI VENKATARAMANA SWAMY COLLEGE,
BANTWAL-574211

1
 SRI VENKATARAMANA SWAMY COLLEGE
[Managed by Sri Venkataramana Swamy Vidhyavardhaka Sangha (R) Bantwal]
Reaccredited at A Grade (CGPA 3.31) by NAAC
Post Box No : 01 (08255) 233374
BANTWAL – 574211 Email: svscollegebantwal@yahoo.co.in
Dakshina Kannada Website: www.svscbantwal.org

Date :15/10/2022

CERTIFICATE
This is to certify that Ms.Yashwini, Ms.Akshitha.M, Ms.Chaithanya, Ms.Nishmitha.G
and Ms.Gunavathi bonafide students of B.Com Final (2019-20 Batch) of U.G.
Department of Commerce.

The project report entitled “A Study on the employees awareness towards

National Pension Scheme” has been prepared by them under the supervision of
Mr.Vinay Kumar C., Assistant Professor U.G. Department of Commerce, S.V.S.
College Bantwal.

Principal

2
 GUIDE CERTIFICATE

This is to certify that this Dissertation titled “Employees awareness towards

National Pension Scheme” is bonafide record of work done by YASHWINI,
AKSHITHA.M, CHAITHANYA, NISHMITHA.G, GUNAVATHI. Under my guidance and
supervision for the partial fulfilment of requirement for the award of the degree of
Bachelor of Commerce (B.Com) during the academic course (2021-22). We certify
that the dissertation has not previously formed the basis for the award of any
Diploma, Degree, and Fellowship, Associateship or other similar title.

Date : 15/10/2022 Mr.Vinay Kumar C

Assistant Professor,
Place: Bantwal U.G. Department of Commerce
S.V.S College Bantwal

3
 DECLARATION
We hereby declare that this project report titled “A STUDY ON
EMPLOYEES AWARENESS TOWARDS NATIONAL PENSION SCHEME” has
been prepared by us during 2021-2022.

PLACE : BANTWAL
DATE : 15/10/2022
YASHWINI
NISHMITHA.G
AKSHITHA.M
GUNAVATHI
CHAITHANYA

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 ACKNOWLEDGEMENT
This study would not have become possible but for the keen interest
evinced and active cooperation extended by our guide, friends and many others in
the field. At this stage, it is our prime and foremost duty to express gratitude to all
those who have directly or indirectly helped us in the outcome of this project.
We express our gratitude to Dr. Suyoga Vardhan, Principal, Sri
Venkataramana Swamy College, Bantwal for giving us an opportunity to do the
project during the course of our study. Our deep sense of gratitude to Mr. Vinay
Kumar C, Assistant Professor for his valuable guidance, support, encouragement
and supervision at every stage of preparation of this project report titled “A Study
of Employees Awareness Towards National Pension Scheme”- A Study in Bantwal
Taluk.
Our sincere thanks to the faculty members of Department of Commerce
for their constant encouragement. We express our gratitude to our family and
friends for their support and timely help in completing this project.
Above all, we express our sincere gratitude to Almighty God for his divine
blessings at every step of our life.

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 CONTENT
Sl. No TITTLE PAGE NO

01 INTRODUCTION 9-15

02 REVIEW OF LITERATURE 16-17

03 CONCEPTUAL STUDY 18-24

04 DATA ANALYSIS AND INTERPRETATION 25-45

05 FINDINGS, SUGGESTIONS AND CONCLUSION 46-48

06 QUESTIONNAIRE 49-52

07 REFRENCE 53

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 LIST OF TABLES
Table. No Particulars Page No

1 Table showing the gender of respondents 26

2 Table showing the different age group of 27
respondents
3 Table showing qualification of respondents 28
4 Table showing occupation of respondents 29
5 Table showing monthly income of respondents 30

6 Table showing marital status of respondents 31

7 Table showing the type of family of respondents 32

8 Table showing whether the employees having NPS 33

account
9 Table showing whether employees are working in 34
government or private institution
10 Table showing who contribute to NPS 35
11 Table showing choice of investment 36
12 Table showing name of the POP-SP name of bank 37

13 Table showing the scheme preference 38

14 Table showing whether respondents choose Tier 1 39
or Tier 2
15 Table showing reason for investing in NPS 40
16 Table showing from how many years employees are 41
investing in NPS
17 Table showing maximum concern regarding their 42
contribution

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18 Table showing how many investors getting tax 43
benefit under NPS
19 Table showing whether old pension scheme better 44
or NPS
20 Table showing whether NPS scheme is satisfied or 45
not satisfied

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INTRODUCTION
National Pension Scheme is a new pension scheme provided to the
government employees in the year 2004. Later, in the year 2009 it was opened for
everyone that is any citizen can open NPS Account. Even NRI can invest in NPS with
a certain condition that should be Indian Citizen.
Under the NPS, the individual contribute to his retirement and also his
employees can also co-contribute for the social security of the individual. Multiple
NPS accounts for a single individual are not allowed and there is no necessity also
as the NPS is fully portable across sectors and locations. NPS was related by Pension
Fund Regulatory and Development Authority (PFRDA).
Thus an attempt is made in this projects study how it benefits the employees
and to know is it better than Old Pension Scheme and what is the need of NPS.

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Objectives of NPS
❖ The scheme allows for systemised savings during one’s working years, thus
inculcating a financial discipline among individuals to save for the future.
❖ It not only allows individuals to fulfil their expenditure requirements but also
allows them to sail through their post retirement life with the least hassels.
❖ To address this concern of the growing senior citizen demography in the
country, the Indian Government thus introduced schemes like the NPS.
❖ A substantial corpus creation for one’s retirement phase is an essential
aspect to take care of during financial planning.

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Types of NPS
1. Tier 1 Account:

This is the non withdrawable permanent retirement account into which the
regular contributions made by the subscriber are credited and invested as per
the portfolio fund manager chosen of the subscriber.

2. Tier 2 Account:
It can be opened only after tyre1. Minimum login period is 3 years. You
can’t withdraw in tier2 before 3 years. For the purpose of tax benefit. It you
don’t want tax benefit. You can withdraw any time.

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Advantages of NPS
1) NPS is flexibility of choice. NPS offers 2 options –Auto choice and Active
choice.
2) The primary advantage of NPS is that it lets us use a portion of our funds. One
can withdraw 25% of their contribution under the Tier1 scheme after a
withdraw of 10 years. However, can make only three such withdrawal and
there should be a gap of at least 5 years between two withdrawal.
3) NPS enhanced convience, opening and managing the NPS Account is simple
and can manage the contribution online by using Permanent Retirement
Account Number.
4) If beneficiars are not satisfied with the performance of current fund manager,
then beneficiars have a right to switch to a new one anytime they want.
5) NPS offers tax benefits under various sections of the income tax act 1961.
One can claim deduction under 80C, 80CCDIB, and 80 CCD(2).

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Disadvantage of NPS
1) Lesser benefits for the government employees than the earlier pension
scheme.
2) Withdrawal limits.
3) Taxation at the time of withdrawal.
4) Account opening restrictions.
5) Investment restrictions.
6) No guaranteed returns.

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How to Apply for an NPS Account
Individuals can register and obtain subscription to the National Pension
System through the online platform eNPS. Registration for the scheme can be done
in the following steps.

STEP1:-
Go to the eNPS portal available at the official website of the National Pension
System.

STEP2:-
Choose your suitable type from the available options ‘Individual Subscriber’
and ‘corporate subscriber’.

STEP3:-
Choose your suitable residential status. The options include ‘citizen of India’
and ‘NRI’.

STEP4:-
Opt for either Tier1 account type or both accounts as a choice of the former
is mandatory for long-term savings.

STEP5:-
Enter your PAN details and select a suitable bank or PoP. It is ideal to choose
a PoP with whom you have an existing relationship such as a savings/
current/demat account for KYC verification as the chosen PoP will do it.

STEP6:-
Upload the scanned copy of your PAN card along with a cancelled cheque. The
image format should be in jpg, jpcg or png format with a file size of 4KB to 2MB.

STEP7:-
Next, upload your scanned photograph and signature in the same format
and size as above.

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STEP8:-
Once routed to the payment gateway, proceed to pay the required charges
via net Banking.

STEP9:-
With the completion of payment, your Permanent Retirement Account
Number will be generated.

15
Review of Literature
• Subhro Sen Gupta and Neha Gupta : in their paper have contemplated the
connection between tier1 and tier2 accounts. They have likewise discovered
the connection between values, corporate and government protections of
the two records.They expressed that open everywhere has higher
confidence on government protection. has prescribed a portion of the means
in the wake of going of the PFRDA Bill towards the finish of 2013 like
improving venture decisions, legitimizing speculation rules for returns over
the long haul, improving straight forwardness and expanding the
percivability and access of this item while guaranteeing that insurance of
claimed rights against misrepresentation.
• Sanyal, Ayanendu and Singh Charan in their exploration paper has examined
that the fundamental reason for NPS are smoothing of utilization and
relieving life span dangers. All inclusive pension schemes are found to do this
effectively for every single individual of this nation. In their examination
accepted that the number of inhabitants in India over 60 years is ten crore
and if an all – inclusive pension of about Rs. 6000 for each annum is granted
to all of them. the report analyzed the expenditure presently being incurred
by government; under the existing scheme of retirement benefits available
to central government employees under consideration, made projections
thereon and suggested ways to meet this liability .The report assessed the
liability likely to arise towards terminal benefits of employees who had
joined before 1-1-2004 in the next three to four decade.
• Lehmkuhl: It suggested various options by which the liability on this account
can be contained in the future and devise suitable and self sustaining models
for financing pension of central government employess with the final
objectives that the funds so devised are able to meet substantially the entire
pension liability of the government.
• Blake: This paper review the current state of the Indian pension system. The
Indian experience could potentially influence policy decision in other
developing countries ,especially those with similar reliance on the national
pension fund system. The report estimated likely expenditure on the
disbursement of pensionary benefits government servants in the
short/medium term; and recommended appropriate formats/information
16
 system to accurate assessment of the pensionary liability in future. The
primary goal of the National Pension Scheme is to guarantee that the
residence gain a better than average profit for speculation after their
retirement.
• Sane Renuka and Thomas Susan The way forward India National Pension
System: has recommended sum of the immediate steps after the passing of
the PFRDA bill at the end of 2013 (a) establishing portability, (b)improving
investment choices,
(c) rationalizing investment guidelines for returns over the long-term, and
making tax policies cinsistent, (d)improving transparency, (e) reverting to a
strict focus on, low costs of managing the NPS, (f) increasing the visibility
and access of this product while ensuring that protection of customer rights
against mis-sales and fraud.

17
An overview of National Pension Scheme
National Pension Scheme is a contributory retirement scheme. The PFRDA
is the regulatory body of the scheme. NPS was introduced with to shift the
countries defined benefit pension scheme to the defined contributory pension
scheme. The scheme was implemented on 2004 and made it available to all citizens
on the year 2009. Investors can contribute minimum Rs.500 per contribution and
are required to deposit a minimum of Rs.6000 in a financial year. There are two
types of account: Tier1 and Tier2 accounts is an add on account which is voluntary
in nature and no restrictions are imposed on withdrawal from Tier2 account.
Individuals are much bothered about saving financially for post
retirement life. However choosing the appropriate retirement portfolio is a difficult
task for majority of people National Pension Scheme is a retirement scheme
offered by government which is open to the general public. It can be accessed easily
by a common man. Any individual within the age group of 18-60 are eligible to
be an NPS subscriber. NPS account can also be maintained by downloading NPS
mobile application. The main motive behind the introduction of NPS was mainly to
improve the pension coverage to private sector employees. Initially the scheme
was opened only for government employees and later on reopened to all including
employees in private sector. The scheme in much flexible as the investors are
eligible to choose the required actually providers. The following Life Insurance
Companies are authorised by PFRDA to act as annuity service providers.
• Life Insurance Corporation of India
• SBI Life Insurance Company Limited
• ICICI Prodential Life Insurance Company Limited
• Bajaj Allianz Life Insurance Company Limited
• Reliance Life Insurance Company Limited
• HDFC Standard Life Insurance Company Limited

18
 Individuals are required to open an account at the empowered entities (POP’s)
which are mostly public and private sectors banks. The subscriber will get a unique
Permanent Retirement Account Number (PRAN) and are required to maintain the
number for the life time. The minimum amount to be deposited while opening
Tier1 account is Rs.500 and Tier2 account is Rs.1000. The minimum total
contribution in a financial year is rs.6000 in Tier1 account and Rs.2000 in Tier2
account and the subscribers are required to make atleast one transaction in both
account on a financial year.
The funds will be invested in different instruments like Government
securities, corporate bonds and equities by the registered pension fund managers
under PFRDA. The following are the registerd fund managers.
• ICICI Prudential Pension Fund
• LIC Pension Fund
• Kotak Mahindra Pension Fund
• Reliance Capital Pension Fund

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Evaluation of NPS For Retirement Planning
“Retirement planning is the process of establishing an income goal and
gathering information about its potential sources at retirement. Retirement
planning in a financial context refers to the process of making financial provision for
retirement. The goal of retirement planning is to achieve financial independence, so
that the person should not be compelled by circumstances to work after
retirement”.
Retirement planning in India has attained much importance in recent years.
According to the AEGON’s “Retirement Survey 2016 India has the highest level of
retirement readiness among all the 15 countries surveyed in the year 2016. The
report indicates that India had scored 7.3 out of 10. It is significantly appreciable
that among the 15 countries surveyed India is the only country which had achieved
a score above 7.0. During 2014 survey 79% of Indian’s opined that retirement
planning is a personal responsibility. According to 2016 survey 83% of the people
are aware about financial planning for retirement for retirement and the percentage
has increased by 4% from 2014. The 2016 survey indicate that 67% of the Indians
have a well developed retirement plan and it was only 64% in the year 2014. During
2014 79% of Indian workers had a proper retirement strategy and it was increased
to 84% in the year 2016”. (The AEGON retirement readiness survey, 2016).

20
Objective of the study
❖ To know customer satisfactions towards NPS.
❖ To know employees awareness towards NPS.
❖ To know how many employees getting tax benefit through NPS.
❖ To know old pension scheme is better or NPS is better.
❖ To know investment choice in NPS made by investors.

21
Research methodology
In this study, the method of administering questionnaires was used to find
out awareness of NPS among private and government employees.
The questionnaires were distributed to 62 respondents of Bantwal taluk.
The data collected through questionnaires are organized and tabulated. All
the data is been analyzed using simple percentage.

22
Source of data
Primary source of data:
Primary data are collected through the questionnaires filled by the
respondents and through personal interaction with respondents.

Secondary source of data:

Secondary data are collected from the articles related to NPS, newspaper and
the recent information’s are extracted from the internet.

23
Limitation of the study
The study was to be completed within the short time; the time factor put a
considerable limit on the scope and extent of study.
Respondents has less awareness of national pension scheme, so it was difficult to
get complete information.

24
 DATA ANALYSIS AND INTERPRETATION

The analysis of data forms the core of any project report. This chapter presents the
findings of the study employees awareness towards National pension scheme.
The data after collection has to be processed and analysis in accordance with the
outline laid down for the purpose at the time of developing the research plan.
This is essential for ensuring that we have all relevant data for making
contemplated comparison and analysis. As has been stated above, the data is being
collected through questionnaire. Here the analysis is done through graphical
representation. The answer to the questionnaire will be evaluated thoroughly and
well show the complete analysis of data. Finally, it will provide the complete picture
of results.

25
TABLE NO.1: Table showing the gender of respondents

Particulars Number of Percentage (%)

respondents
Male 25 40
Female 37 60
Total 62 100

40%

60%

Male Female

Interpretation
The above analysis reveals that among the 62 employees surveyed, 40% of the
employees are male and 60% employees are females. Majority of the respondent
who took part in the survey are female.

26
TABLE NO. 2: Table showing the different age groups of
respondents

Particulars Number of Percentage (%)

respondents
Below 20 10 16
20-30 32 52
30-40 11 18
Above 40 9 14
Total 62 100

14% 16%

18%

52%

Below 20 20-30 30-40 Above 40

Interpretation
The above analysis shows that among 62 employees surveyed, 16% of the
respondents are in the age group of below 20, 52% of the respondents are in the
age group of 20-30, 18% of the respondents are in the age group of 30-40 and 14%
of the respondents are in the age group of above 40. Majority of the respondents
who took part in the survey are 20-30 groups.

27
TABLE NO. 3: Table showing Qualifications of respondents

Particulars Number of Percentage (%)

respondents
No formal education 1 2
School level 6 10
College level 40 65
Others 14 23
Total 62 100

No formal education School level College level Others

2%
10%
23%

65%

Interpretation
The above analysis show that among 62 respondents surveyed , 2% of the
respondents have no formal education ,10% of the respondents have school level
education , 65% of the respondents have college level education , 23% of the
respondents having other educational qualification.

28
TABLE NO. 4: Table showing occupation of the respondents

Particulars Number of Percentage (%)

respondents
House wives 4 6
Agriculture 1 2
Business 0 0
Professional 7 11
Employed 31 50
Students 19 31
Total 62 100

House wives Agriculture Business Professional Employed Students

6%
2%
0%
11%
31%

50%

Interpretation
The above analysis show that 62 respondents surveyed, 6% respondents are house
wives, 2% respondents are agriculturist, 11% of the respondents are professionals,
50% 0f the respondents are employed, 31% of the respondents are students.

29
TABLE NO.5: Table showing the Monthly income of
respondents

Particulars Number of Percentage (%)

respondents
Below Rs.2500 9 15
Rs.2500-5000 4 6
Rs.5000-10000 9 15
Rs.10000-20000 15 24
Above Rs. 20000 25 40
Total 62 100

Below Rs.2500 Rs.2500-5000 Rs.5000-10000 Rs.10000-20000 Above Rs. 20000

15%

6%
40%

15%

24%

Interpretation
The above analysis show that among 62 respondents,15% of the respondent’s
income is below Rs.2500, 6% of the respondent’s income is between Rs. 2500-5000,
15% of the respondent’s income is between 5000-10000, 24% of the respondent’s
income is between Rs.10000-20000, 40% of the respondent’s income is above
Rs.20000.

30
TABLE NO. 6: Table showing the Marital Status of respondents

Particular Number of Percentage (%)

respondents
Married 23 37
Unmarried 39 63
Total 62 100

Married Unmarried

37%

63%

Interpretation
The above analysis show that among 62 respondents, 37% of the respondents are
married and 63% of the respondents are unmarried.

31
TABLE NO. 7: Table showing the Type of Family of respondents

Particular Number of Percentage (%)

respondents
Joint 23 37
Nuclear 39 63
Total 62 100

Joint Nuclear

37%

63%

Interpretation
From the above analysis shows that among 62 respondents, 37% of the
respondents are from Joint Family and 63% of the respondents are from Nuclear
Family.

32
TABLE NO. 8: Table showing whether the employees having
NPS Account.

Particulars Number of Percentage (%)

respondents
Yes 23 37
No 39 63
Total 62 100

Yes No

37%

63%

Interpretation
The above analysis show that among 62 respondents surveyed, 37% of respondents
have the NPS Account and remaining 63% of the respondents are not having NPS
Account.

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TABLE NO. 9: Table showing whether Employees are working in
Government or Private Institution.

Particulars Number of Percentage (%)

respondents
Government 6 27
Private 17 73
Total 23 100

Government Private

27%

73%

Interpretation

The above analysis shows that out of 23 respondents, 27% of the respondents are
working at Government institution and 73% of the respondents are working at
Private Institution.

34
TABLE NO.10: Table showing who contribute to NPS

Particulars Number of Percentage (%)

respondents

Self 9 39
Government 5 21
Employer 9 40
Total 23 100

Self
Employer
39%
40%

Government
21%

Self Government Employer

Interpretation

The above analysis shows that among 23 respondents who are having NPS Account,
39% respondents contribute to NPS by themselves, for 21% respondent’s
government contributes and for 40% respondents employer contributes. Majority
of the respondents, employer contributes to their NPS.

35
TABLE NO.11: Table showing choice of investment

Particulars Number of Percentage (%)

respondents
Auto 10 44
Manual 13 56
Total 23 100

Auto Manual

44%

56%

Interpretation
The above analysis shows that among 23 respondents surveyed, 44% of the
respondents have made Auto choice and 56% of the respondents have made
manual choice. From this we can know that majority of them have opt Manual.

36
TABLE NO.12: Table showing name of the POP-SP Name of Bank

Particular Number of Percentage (%)

respondents
SBI 16 68
HDFC 3 15
ICICI 1 3
LIC 3 14
Total 23 100

SBI HDFC ICICI LIC

15%

3%

14%

68%

Interpretation
The above analysis reveals that among 23 respondents surveyed, 68% of the
respondent’s name of the bank is SBI, 15% of the respondent’s name of the bank is
HDFC, 3% of the respondent’s name of the bank is ICICI and 14% of the
respondent’s name of the bank is LIC. Majority of them has opt SBI.

37
TABLE NO.13: Table showing the scheme preference

Particulars Number of Percentage (%)

respondents
Asset 9 39
Government 6 26
Corporate 3 14
Equity share 5 21
Total 23 100

Asset Government Corporate Equity share

21%

39%

14%

26%

Interpretation
The above analysis show that among 23% of the respondents surveyed, 39% of the
respondent’s scheme preference is Asset, 26% of the respondent’s scheme
preference is Government, 14% of the respondent’s scheme preference is
Corporate and 21% of the respondent’s scheme preference is Equity share.
Majority of the scheme preference is Asset.

38
TABLE NO.14: Table showing whether respondents choose Tier
1 or Tier 2

Particulars Number of Percentage (%)

respondents
Tier 1 21 92
Tier 2 2 8
Total 23 100

Tier 1 Tier 2

8%

92%

Interpretation
From the above analysis show that among 23% of the respondents surveyed, 92%
of the respondents have opt Tier 1 Account and 8% of the respondents have opt
Tier 2 Account. From this we can understand majority of them has made choice Tier
1 Account.

39
TABLE NO.15: Table showing reason for investing in NPS

Particulars Number of Percentage (%)

respondents
Profit 3 13
Tax benefit 2 9
Future 17 74
Other 1 4
Total 23 100

Profit Tax benefit Future Other

Other
Profit
4%
13%

Tax benefit
9%

Future
74%

Interpretation
From above analysis we can understand among 23 respondents surveyed, 13% of
the respondents have invested in NPS for the reason earning profit, 9% of the
respondents have invested in NPS for getting tax benefit, 74% of the respondents
have invested in NPS for future purpose and 4% of the respondents have invested
for other purpose. Majority of the respondents have invested for future purpose.

40
TABLE NO. 16: Table showing from how many years employees
are investing in NPS.

Particulars Number of Percentage (%)

responding
1 year 10 43
2 year 5 22
More than 2 year 8 35
Total 23 100

1 year 2 year More than 2 year

More than 2 year

35% 1 year
43%

2 year
22%

Interpretation
The above analysis shows that out of 23 respondents surveyed, 43% of the
respondents are investing from 1 year, 22% of the respondents are investing from
2 year and 35% of the respondents are investing from more than 2 year.

41
TABLE NO. 17: Table showing maximum concern regarding
their contribution.

Particulars Number of Percentage (%)

responding
Safety of the principle 7 31
High return 4 17
Fixed return 8 35
Real return 4 17
Total 23 100

Safety of the principle High return Fixed return Real return

17%

31%

35%
17%

Interpretation
From this table and chart we can understand that among 23 respondents surveyed,
31% of the respondent’s maximum concern is safety of the principle, 17% of the
respondent’s maximum concern is high return, 35% of the respondent’s maximum
concern is fixed return and 17% of the respondent’s maximum concern is real
return. Majority of the respondent’s maximum concern regarding their
contribution is safety of the principle.

42
TABLE NO.18: Table showing how many investors getting tax
benefit under NPS.

Particulars Number of Percentage (%)

responding
Yes 13 57
No 10 43
Total 23 100

Yes No

43%

57%

Interpretation
From the above analysis we can know that among 23 respondents surveyed, 57%
of the respondents are getting tax benefit by investing in NPS and 43% of the
respondents are not getting tax benefit. Majority of the respondents are receiving
tax benefit.

43
TABLE NO.19: Table showing whether old pension scheme
better or NPS.

Particulars Number of Percentage (%)

responding
Old pension scheme 9 39
NPS 14 61
Total 23 100

Old pension scheme NPS

39%

61%

Interpretation
From the above analysis 39% of the respondents opinion is old pension is better
than new pension and 61% of the respondent’s opinion new pension is better. From
this we can know majority of the respondents feels new pension scheme is better.

44
TABLE NO. 20: Table showing whether NPS scheme is satisfied
or not satisfied

Particulars Number of Percentage (%)

responding
Satisfied 15 65
Not satisfied 8 35
Total 23 100

Satisfied Not satisfied

35%

65%

Interpretation
From the above analysis 65 % of the respondents are satisfied with NPS
scheme and 35% of the respondents are not satisfied. From this we can know that
majority of the respondents are satisfied by in NPS.

45
FINDINGS:
According to the survey, most of the employees who are having NPS account
are satisfied with National pension scheme and are willing to continue with NPS.
But some of the government employees are not satisfied with National Pension
Scheme and their opinion of Old Pension Scheme is better, because invested
money through NPS not guaranteed amount, during retirement minimum pension
not fulfilled their needs because of inflation. The following are the findings we point
out from our study.
❖ Majority of the respondents who took part in the survey are females.
❖ Majority of the respondent who took part in the survey are 20-30 age group.
❖ Majority of the respondents who took part in the survey are employed.
❖ Majority of the respondents who took part in the survey are having college
level qualification.
❖ Majority of the respondents are not having NPS Account .Employees are
having less awareness about NPS.
❖ Majority of the employees choose manual format.
❖ Majority of the employees scheme preference is asset.
❖ Majority of the employees have Tier 1 Account.
❖ Majority of the employees invested in NPS for future purpose.
❖ The maximum concern of the employees is getting fixed return.
❖ Majority of the employees are getting Tax benefit.

46
SUGGESTIONS
By undertaking the above table facts and observations during the survey, the study
has come to a conclusion that the following suggestions must be taken into
consideration in order to make the employees to utilize National Pension Scheme.
• Complaints regarding the decrease in effective salary of employees who
contribute 10% of their salary towards a pension fund.
• Allegations from staff association and larger federations citing discrimination
and larger federations citing discrimination between the different groups of
government employees.
• The NPS does not ensure Family Pension following the employees death of
the employee, the family is bound to suffer due to inadequate annuity from
the contribution.
• While accumulations and contributions in NPS are exempt, tax will be
applicable to lump sum withdrawals from NPS scheme. A service tax liability
will also be applicable to any sum used to buy annuity.

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Conclusion:
The present study has made an earnest attempt to know the employees awareness
towards NPS. From this study, it is clear that majority of the employees are not
having awareness about NPS. Some employees are having NPS account but they
are not having knowledge about NPS scheme and most of the employees don’t
know how they can get tax benefit.
Thus, the awareness about NPS scheme has to be made to all the employees so
that can make best utilization of their money.

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 QUESTIONNAIRE

DEAR RESPONDENTS,
We are the student of Sri Venkataramana Swamy College, Bantwal, preparing a
project report on NPS titled “A Employees Satisfaction Towards NPS”- A Brief Study
Of Employees at Bantwal Taluk Dakshina Kannada. So I kindly request you to spare
some of your time in answering the following questions. The information collected
will be confidential and used for academic purpose.

Personal Details:
1. Name :
2. Gender : Male [ ] Female [ ]
3. Age Group : Below 20 [ ] 20-30 [ ]
30-40 [ ] Above 40 [ ]
4. Educational Qualification: No formal education [ ]
School level [ ]
College level [ ]
Others [ ]
5. Occupation : House wives [ ] Agriculture [ ]
Business [ ] Professional [ ]
Employed [ ] Students [ ]
6. Monthly Income : Below Rs.2500 [ ]
Rs.2500 - Rs.5000 [ ]
Rs.5000 - Rs.10000 [ ]
Rs.10000- Rs.20000 [ ]
Above Rs.20000 [ ]

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7. Marital Status : Married [ ] Unmarried [ ]
8. Types of Family : Joint [ ] Nuclear [ ]

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1. Do you have NPS Account ?
Yes No
2. Are you working in Government or Private institution ?
Government Private
3. Who contribute to NPS ?
Self Government Employer
4. What the format you choose ?
Auto Manual
5. Name of the POP-SP Name of Bank ?
SBI HDFC ICICI LIC
6. Mention scheme preferences.
Asset Government Corporate
Equity Share
7. Do you have Tier 1 Account or Tier 2 Account ?
Tier 1 Tier 2
8. What is the reason for investing in NPS ?
Profit Tax benefit Future Other
9. From how many years you are investing in NPS ?
1 Year 2 Year More than 2 year
10. What is the maximum concern to you regarding your contribution?
Safety of the principle High return
Fixed return Real return
11. Are you getting tax benefit under NPS?
Yes No

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12. Do you think it safe to invest your money in NPS ?
Safe Not safe
13. Which scheme you feel better ?
Old pension scheme NPS
14. Are you satisfied with NPS Scheme ?
Satisfied Not satisfied
15. Give your suggestion……

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Reference
• http://ww.igidr.ac.in/pdf/publication/WP-2014-022.pdf
• https://enps.nsdl.com/eNPS
• www.india.gov.in
• http://financialservice.govt.in/pensionreforems_index.asp
• Pensionersportal.gov.in
• Srikrishna, Justice B.N (2013): Financial Sector Legislative Reforms
Commision
• Newspaper
• Articles: Subhro Sen Gupta ,
Sanyal,Ayanendu and Singh Charan
Lehmkuhl
Blake
Sane Renuka and Thomas Susan

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