Normally it is considered that a person is having an active working life up to the age of 60 years, whether he/she is employed or not. Those who are employed in Government, Public or Private sectors retire on attaining the age of 60 years. To meet the post-retirement expenses, some sort of regular income is required. To overcome this, the Pension scheme was introduced for Government and Public sector employees.

The pension scheme was regulated through the Pension Act. It was also considered as a social security measure. Whereas this facility is not available for Private Sector employees and unorganized sector workers. The unorganized sector workers are also deprived of Pension benefits. To have a uniform Pension scheme for all citizens under both Organised and Un-organised sector Government introduced the National Pension Scheme (NPS).