The national pension plan (NPS) is an initiative of the government of India to encourage people to voluntarily save for their retirement. Under this defined-contribution pension system (NPS), your savings will be pooled in a pension fund which is invested in diversified portfolios such as corporate debentures, shares, government bonds and bills. Under the nps the subscriber is allotted a unique permanent retirement account number (PRAN), under which all his account information is maintained and transactions carried out.