The implementation of New Pension Scheme i.e. NPS is a landmark decision of Government of India to provide the old age social security net to its large informal workforce. More than 90 percent of total workforce in India is informal in nature without any social security coverage. Although a few informal workers are covered with old age social security but the amount in their account is negligible. The rising size of old aged population and large size of informal workforce makes it necessary to implement the pension reforms on urgent basis. The population of India is likely to increase from 1210.9 million in 2011 to 1566.6 million in 2061. The total number of persons aged ‘60 years and above’ will increase from 104.23 million in 2011 to 414.92 million in 2061 and number of persons aged ‘80 years and above’ will increase from 11.66 million in 2011 to 70.92 million in 2061. The old age dependency ratio is likely to increase from 8.9 percent in 2016 to 29.5 percent in 2061. Presently, India is a young country but in coming decades the country will become the aged country due to demographic transition. Moreover, majority of workforce in India is informal in nature without any social security coverage for old age. The rising expected life at birth, transformation of joint families into nuclear family,