What happened
NPS Trust, the body behind the National Pension System (NPS), carries an official page titled “Activate Tier II” on its website. A companion “About NPS” page describes the system itself.
The title of the first page shows that a Tier II account is something a subscriber activates, rather than something that appears automatically. The pages are the official place to check how that process works.
What it means for you
If you already hold an NPS account and are weighing a Tier II account alongside it, start with the NPS Trust pages rather than third-party summaries. Rules on contributions, withdrawals, charges and tax treatment can differ between the two tiers and can change, so confirm each detail at the source before you decide anything.
This article does not state those rules, because the official pages cited here do not give us figures we can verify. It also does not suggest whether a Tier II account suits you.
For a plain-language primer on the scheme as a whole, see our guide to the National Pension System (NPS).
Background
The National Pension System is India’s pension scheme, and NPS Trust is the official body that publishes information about it. Its accounts come in two tiers, Tier I and Tier II, which is why subscribers often compare them.
We will update our Knowledge Base explainer on the differences between the two tiers as further official detail is confirmed.
