NPS scheme: What do E, C, G, Tier I, Tier II and other options mean?

If you have ever looked at the National Pension System (NPS) scheme list, you may have wondered why there are so many names. Scheme E Tier I, Scheme C Tier II, Scheme G Tier I-Direct, POP, and the list is long. This can look complicated at first.

In this article, we try to make things a little easier for you so the next time you visit the NPS trust website, you are a little less hassled by seeing the names. Once you understand what E, C, G, Tier I, Tier II, Direct and POP mean, the list becomes much easier to follow.

So, what do E, C and G mean?

These letters basically tell you where your NPS money is being invested.

In simple language, E is the equity option, C is the corporate debt option, and G is the government securities option.

The three options are different in terms of risk and return. Equity has higher exposure to market movements.

What are Tier I and Tier II?

Tier I and Tier II are about your NPS account, rather than where the money is invested. Tier I is your main NPS retirement account; Tier II is an additional NPS account with more flexibility for withdrawals, subject to the applicable rules

For example, Scheme G Tier II means a Tier II account with the Government Securities option.

And what does Direct or POP mean?

This refers to how the NPS account is opened. Direct means the subscriber uses the direct NPS channel. POP stands for Point of Presence, an authorised NPS service channel.

Why are there separate Government and Non-Government schemes?

NPS is not one single scheme for everyone. The options shown to a subscriber depend on the sector and the type of NPS account.

For Government Sector subscribers, the list includes options such as Central Government, State Government, NPS Lite and UPS-related schemes, along with specific E, C and G options.

For Non-Government Sector subscribers, the list mainly includes combinations of E, C and G with Tier I or Tier II accounts, available through Direct or POP channels. NPS Vatsalya is also included in this category.

Government and Non-Government NPS schemes at a glance