MCQ
Pension and Social Security MCQ - Practice Questions with Answers
Solve 2 Pension and Social Security questions for RAS/RPSC preparation.
Practice questions
Q1With reference to the Retirement Income Scheme and Drawdown Options under the National Pension System launched by PFRDA through its circular dated 15 May 2026, consider the following two statements: 1. Under the new rules, subscribers are permitted to withdraw a maximum of only 40 per cent of their accumulated NPS corpus as a lump sum, with the balance compulsorily used to purchase an annuity. 2. The Pension Fund Regulatory and Development Authority has reduced the maximum age for continuation of an NPS account from 75 years to 70 years under the revised framework. Which of the statements given above is/are correct?
Both statements are incorrect. Statement 1 is wrong because under the new PFRDA framework, subscribers are permitted to withdraw up to 80 per cent of their NPS corpus, not just 40 per cent, providing greater flexibility in retirement planning. Statement 2 is wrong because PFRDA has actually extended the maximum age for continuation of an NPS account up to 85 years, not reduced it to 70 years. The circular dated 15 May 2026 also introduces Systematic Lump Sum Withdrawal and Systematic Unit Redemption to give subscribers structured drawdown options through retirement.
Q2Assertion (A): The Pension Fund Regulatory and Development Authority through its circular dated 15 May 2026 launched the Retirement Income Scheme and Drawdown options under the National Pension System.\nReason (R): The new framework permits subscribers to withdraw up to 80 per cent of their corpus and extends NPS account continuation up to age 85.
Both the Assertion and Reason are factually correct as per the PFRDA circular dated 15 May 2026. However, the 80 per cent withdrawal limit and age 85 continuation are features of the new framework, not the cause for its launch. Therefore R does not explain A, making option B correct.
You've seen 2 of 2 sample questions
Unlimited practice on Pension and Social Security comes with the RAS Test Series + Practice pack or Gate Pass.