Railway Services (Implementation of National Pension System) Rules, 2025
Summary
1. Applicability
- Applies to Railway servants appointed on or after 01.01.2004 on a substantive/regular basis.
- Not applicable to casual, contractual, contingency-paid staff, or those retained under the 1993 Pension Rules.
2. Key Concepts
- NPS: Defined contribution pension scheme under PFRDA Act, 2013.
- Subscriber: Railway employee enrolled under NPS.
- PRAN: 16-digit Permanent Retirement Account Number allotted by CRA.
- Emoluments: Basic Pay + DA (+ NPA for doctors).
- Contributions:
- Employee – 10% of emoluments.
- Government – 14% of emoluments.
CRA: Central Recordkeeping Agency maintains accounts and records.
3. Registration and PRAN Process
- Mandatory for all new entrants.
- Sequence:
- Employee submits registration & option forms.
- Head of Office verifies → forwards to DDO → PAO → CRA.
- PRAN generated within 9 working days of joining.
Delays attract PPF-rate interest and administrative accountability.
4. Contributions & Special Cases
- Leave with pay: Contributions continue.
- Leave without pay: No contribution.
- Suspension: Optional contribution; Govt matches if employee contributes.
- Arrears: Contributions on arrears at the time of disbursement.
- Foreign Service/Deputation: NPS continues normally.
Delays: Interest at PPF rate; responsibility fixed for administrative lapses.
5. Option for Death/Disability Benefits
Each employee must exercise Option Form 1 at joining (or soon after 2025 notification):
- Option A: Benefits under Railway Pension Rules, 1993 / Extraordinary Pension Rules.
- Option B: Benefits under NPS.
- Can revise anytime before retirement.
- Default:
- Death/invalidity within 15 years → Old Pension Rules.
- After 15 years → NPS route.
If no eligible family → revert to NPS corpus payment.
6. Retirement Provisions
- Superannuation: NPS exit – withdraw up to 60% lump sum, purchase annuity with rest (as per PFRDA norms).
- Voluntary Retirement: Allowed after 20 years’ service with 3 months’ notice.
- Premature Retirement (Public Interest): Treated as normal NPS retirement.
- SVRS (Surplus cases): Eligible for both NPS benefits + ex-gratia.
Deferment Option: Can continue/defer withdrawals post-retirement per PFRDA rules.
7. Resignation / Termination
- Resignation: Treated as pre-retirement exit. Withdrawal after 90 days.
- Resignation to join another Govt NPS job: PRAN continues (no withdrawal).
- Dismissal/Removal: Forfeiture of pension, but NPS corpus payable.
Withdrawal of resignation: Allowed within 90 days under specified conditions.
8. Disability / Invalidation
- Medical Board must certify incapacity.
- If disability covered under RPwD Act, 2016, employee may be retained in alternate duty.
- Benefits depend on Option Form:
- Opted for 1993 Rules → gets Invalid/Disability Pension; Govt share in NPS reverts to Govt; employee share paid as lump sum.
- Opted for NPS → gets full NPS corpus (lump sum + annuity).
Injury on Duty: If opted for Extraordinary Pension, processed under those rules; otherwise, NPS benefits apply.
9. Death in Service
- If opted Old Pension Scheme:
- Family Pension + Death Gratuity under 1993 Rules.
- Govt share in NPS reverts to Govt; employee share paid to nominee/heir.
- If opted NPS:
- Family receives entire NPS corpus (100% withdrawal permitted).
- Default:
- Death <15 years’ service → Old Pension benefits.
- Death >15 years → NPS benefits.
Double benefits not allowed.
10. Administrative Provisions
- HOO/PAO/DDO Responsibilities: Ensure timely registration, deduction, and transfer.
- Retirement Preparations:
- Maintain quarterly list of retirees (12–15 months ahead).
- Obtain “No Demand Certificate” (NDC) 1 year before retirement.
- Forms for Processing:
- Form 4-A (Retirement/VR)
- Form 4-B (Technical Resignation)
- Form 4-C (Resignation/Compulsory Retirement)
- Form 4-D (Invalidation)
- Form 4-E (Death).
- Relaxation & Interpretation: Ministry of Railways with DoP&PW concurrence.
Repeal: Earlier circulars on NPS implementation in Railways superseded.
