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After the start of the NPS, government officers (central and state) do not receive pensions like in the past. A portion of the NPS is used to buy an annuity, giving a monthly "pension". Effectively, the employee funds his/her pension because the quantum of the annuity (and the monthly amount one gets) depends on how much one can save into the NPS.
People are living longer, hence traditional pensions are a heavy burden on the exchequer and financially unsustainable. NPS is now the norm.
You would be contributing towards the pension fund from your salary (a fixed percentage of your basic + DA) and the employer would match that every year. You may contribute more voluntarily. This holds true for NPS.
There are tax breaks available on the money so contributed from your side up to a certain level.