Feedback of Smt Beena, APO/Palghat/SR

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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SCRA - Special Class Railway Apprentice

• Started in 1927 during British rule to meet the demand for trained mechanical engineers in Indian Railways 

• One of the Oldest Engineering-entry schemes in India and carried high prestige

• SCRA programme conducted by the Union Public Service Commission (UPSC) to recruit candidates for specialized mechanical engineering training at the Indian Railways Institute of Mechanical and Electrical Engineering (IRIMEE), Jamalpur.

• The examination was extremely competitive, with approximately 20 to 30 candidates selected each year from thousands of applicants.

• The syllabus: Mathematics, Physics, Chemistry, English, General Knowledge, and a Psychological Test, followed by interview and medical examination.

• The Training Programme - 4 years - in collaboration with Birla Institute of Technology (BIT), Mesra, in later years.

• Upon successful completion, candidates were inducted directly into the Indian Railway Service of Mechanical Engineers (IRSME) as Group ‘A’ officers.

• In 2015, the Ministry of Railways decided to discontinue the SCRA examination after UPSC expressed unwillingness to continue conducting it. Recruitment to IRSME has since been done through the UPSC Engineering Services Examination (ESE).

• The IRIMEE at Jamalpur continues to function as a CTI for IRSME (now IRMS) Officers

• In 2021, a report by the Ministry of Finance suggested that the SCRA scheme could be revived, considering the need for specialized mechanical training for Indian

Images - Study Material

Feedback of Shri Ram Gopal, AFA/Bilaspur/SECR

 

Feedback of Shri Ram Gopal, AFA/Bilaspur/SECR