Summary - Railway Services (Implementation of National Pension System) Rules, 2025

 

Railway Services (Implementation of National Pension System) Rules, 2025

Click for Official Gazette of NPS implementation in Railways

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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.

  
  

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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.

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3. Registration and PRAN Process

• Mandatory for all new entrants.

  
  

• Sequence:

  
  

1. Employee submits registration & option forms.

   
   

2. Head of Office verifies → forwards to DDO → PAO → CRA.

   
   

3. PRAN generated within 9 working days of joining.

   
   

• Delays attract PPF-rate interest and administrative accountability.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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11. Essence of Rules

✅ NPS becomes statutory framework for all post-2004 recruits.

✅ Ensures timely registration, accountability, and defined process for each exit scenario.

✅ Balances between NPS flexibility and Old Pension safeguards for death/disability.

✅ Strengthens financial discipline and protection of employee interests.

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NPS - Non-Government Secotr

 

NPS  - Non Govt Sector

• NPS stands for National Pension System

• Multiple Scheme Framework (MSF) introduced by PFRDA for non-government NPS subscribers.
  
  

• Subscribers can now hold multiple schemes under one PRAN (earlier only one scheme).
  
  

• 100% equity allocation allowed in high-risk variant (earlier 75% cap).
  
  

• Schemes can be persona-based (e.g., for women, self-employed, digital economy workers).
  
  

• Vesting period of new MSF schemes fixed at 15 years (earlier till age 60 for common schemes).
  
  

• Exit rules revised – early exit possible after 15 years; corpus withdrawal flexibility enhanced.
  
  

• Normal exit proposal: 80% lump sum + 20% annuity (earlier 60% lump sum + 40% annuity).
  
  

• Small corpus withdrawal limit raised (₹5 lakh → ₹12 lakh).
  
  

• Premature withdrawal limit raised (₹2.5 lakh → ₹4 lakh).
  
  

• Partial withdrawals allowed, calculated as a % of corpus at time of request.
  
  

• Entry/continuation age increased (up to 85 years).
  
  

• Loans against NPS now allowed (earlier not permitted).
  
  

• Frequency of partial withdrawals increased (3 times → 6 times).
  
  

• Total charges capped at 0.30% of AUM per year; incentive for Pension Funds attracting >80% new subscribers.
  
  

• Exposure draft open for comments; final rules will follow.

• PFRDA ने गैर-सरकारी NPS ग्राहकों के लिए Multiple Scheme Framework (MSF) लागू किया।
  
  

• अब एक PRAN पर सदस्य कई योजनाएँ रख सकेंगे (पहले केवल एक योजना संभव थी)।
  
  

• 100% इक्विटी निवेश की अनुमति उच्च जोखिम वाले विकल्प में (पहले सीमा 75%)।
  
  

• योजनाएँ व्यक्ति-आधारित बनाई जा सकती हैं (जैसे महिलाओं, स्वरोजगार, डिजिटल क्षेत्र के लिए)।
  
  

• नई MSF योजनाओं की वेस्टिंग अवधि 15 वर्ष तय (पहले 60 वर्ष की आयु तक)।
  
  

• निकासी नियम बदले – 15 वर्ष बाद ही आंशिक निकासी संभव, लचीले विकल्प उपलब्ध।
  
  

• सामान्य निकासी प्रस्ताव: 80% लम्पसम + 20% वार्षिकी (पहले 60% लम्पसम + 40% वार्षिकी)।
  
  

• छोटे कॉर्पस की निकासी सीमा बढ़ी (₹5 लाख → ₹12 लाख)।
  
  

• पूर्वकालिक निकासी सीमा बढ़ी (₹2.5 लाख → ₹4 लाख)।
  
  

• आंशिक निकासी अब कॉर्पस के प्रतिशत के आधार पर होगी।
  
  

• प्रवेश/निरंतरता की अधिकतम आयु अब 85 वर्ष।
  
  

• अब NPS के विरुद्ध ऋण की सुविधा भी उपलब्ध।
  
  

• आंशिक निकासी की आवृत्ति बढ़ी (3 बार → 6 बार)।
  
  

• कुल शुल्क सीमा AUM का 0.30% प्रति वर्ष; PFs को नए ग्राहकों पर अतिरिक्त प्रोत्साहन।
  
  

• यह केवल प्रस्तावित मसौदा है; अंतिम नियम बाद में अधिसूचित होंगे।
  
  

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