The National Pension System (NPS) was launched in the year 2004 by the Government of India. Many asset management companies manage pensions for companies and these companies are regulated by the Insurance Regulatory Development Authority of India or IRDA.

You can choose one of the several companies in India that mange the NPS. Once you have chosen the same, you can opt for getting monthly pension and invest accordingly in the same. You have an option of getting a lumpsum after a certain period or you can opt for monthly income in the form of pension. Both resident and non resident Indians are allowed to subscribe to the scheme.

Which Are the Best NPS Pension Funds In India?

There are a few companies that manage pension. Here is a list of the same.This is not an exhaustive list, but only a select one.

1) HDFC Pension Management Company

The company is a subsidiary of HDFC Standard Life and comes with a strong pedigree in Asset Management. It manages assets under the NPS and as per the guidelines from IRDA. The net asset value under HDFC Pension Scheme Type 1 is Rs 15.67. There is also a calculator available on the company's website which can help you calculate a fixed level of pension, if you so wish.

Amounts that are contributed to the pension fund get tax exemption under SEC 80CCD of the Income Tax Act.

2) ICICI Pension Fund Management Company

Like HDFC Pension, ICICI Pension Fund is also among the pension management companies. The company is a wholly owned subsidiary of ICICI Prudential Life. The company started its operations 5 years ago in May 2009. Employers can contribute 10 per cent of the salary, which includes Dearness Allowance as well as Basic salary.

Start contributing early to the Pension Scheme helps build a larger corpus.

3) LIC Pension Fund

LIC Pension is managed by the Life Insurance Corporation of India. This also like other peers comes with a strong pedigree.

The Union Budget for 2015-16 has given additional benefits for the New Pension Scheme by providing extra tax benefits thus encouraging investors to save through this mechanism for their retirement.

4) Reliance Pension

The Reliance Pension Fund has also been authorised by the Insurance Regulatory Development Authority of India to manage pension funds in India. The company claims to have a low cost product, which also offers portability and flexibility.

Conclusion

The Union Budget for 2015-16 has given additional benefits for the New Pension Scheme by providing extra tax benefits thus encouraging investors to save through this mechanism for their retirement.

Under Sec 80CCD investors can now save up to Rs 1.5 lakh per year, as against the earlier tax benefit of Rs 1 lakh. This comes as a major boost to investors looking to save through the NPS in the form of tax benefits.

Many individuals suggest that you should invest in NPS as some of the schemes are very secure. It would also help to build a corpus for retirement along with tax benefits.

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