A
A guaranteed monthly payout fixed by the central government upon retirement.
B
A structure where retirement benefits depend on total contributions made and investment returns generated.
C
A scheme where the employer contributes 100% of the pension corpus without employee contribution.
D
A fixed-return pension instrument regulated directly by the Reserve Bank of India.
Correct answer: (b) A structure where retirement benefits depend on total contributions made and investment returns generated.
Explanation
Option B is correct: Under a Defined Contribution model, retirement benefits are not pre-determined or guaranteed; rather, they depend on the total contributions deposited and the market returns earned on those investments over time. Options A, C, and D are incorrect based on this definition.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2017 · Q29 · General Studies · 2 marks
Who among the following can join the National Pension System (NPS)?