New Pension Scheme 2004

  • For Railway employees recruited on or after 01.01.2004.
  • This scheme has Tier I and Tier II accounts.
  • Tier I is mandatory for all Railway employees who joined service or after 01.01.2004.
  • Tier I contribution will be 10% of Basic Pay + DA(plus NPA if any).
  • It will be deducted from salary every month. Government will make an equal matching contribution. Both will be rounded off to nearest rupee.
  • Recovery will commence from the month following the month of joining Railway Service.
  • Aunique 16 digit Permanent Pension Account Number(PPAN) will be alloted to each Railway employee under the scheme.
  • No withdrawal is permissible.
  • Tier I contribution and investment returns will be kept in a non-withdrawable Pension Tier I account.
  • Tier II is optional.
  • Tier II contribution will be kept in a separate account that will be withdrawable at the option of the Railway employee. 
  • No Government contribution in Tier II will be made. 
  • An annual statement containing details of opening balance, monthly contribution, contribution of Government and interest earned has to be given to the employee.
  • Interest will be 8% from 1.1.2004.

Exit from the scheme

  • Exit from the scheme will be on attaining 60 years from Tier I.
  • On exit it is mandatory to invest 40% of pension wealth in an annuity(from IRDA regulated insurance company) which will provide pension for the lifetime of the employee and his/her dependant spouse/parents.
  • For those who leave the scheme before attaining 60 years it is mandatory to invest 80% of the pension in such scheme.
  • An annual statement containing details of opening balance, monthly contribution, contribution of Government and interest earned has to be given to the employee.

Management of the Pension Fund

  • There will be a Central Record Keeping Agency and several Pension Fund Managers to offer 3 categories of funds to Railway employees. A,B, C based on the ratio of investment in fixed income instruments and equities.
  • Pending formation of a regular Central Record Keeping Agency(CRKA), Central Pension Accounting Officer will act as CRKA.
  • An independent Pension Fund Regulatory and Development Authority(PFRDA) will be set up. This authority will regulate and develop Pension market. As an interim measure and interim PFRDA has been set up by Ministry of Finance.
  • Till regular CRKA and Pension Fund Managers are appointed the contributions are kept in Public Accounts of India as an interim measure.

Other benefits to Railway employees joined after 1.1.2004

  • Existing provision of leave encashment will continue for NPS Railway employees also.
  • Existing provision of Provident Fund and old pension scheme not available for Railway employees covered under NPS.
  • Length of Qualifying service is not relevant in this case. Thus no credit of Casual Service on Regularisation as Group D Railway employee.

Additional Relief on Death/Disability

  • On invalidation not attributable to duty
  1. Invalid pension calculated as per CCS(Pension )Rules 1972.
  2. Retirement Gratuity.
  • Death in service not attributable to duty
  1. Family Pension calculated as per CCS(P) Rules, 1972
  2. Death Gratutity
  • Death in service attributable to duty
  1. Extraordinary Family Pension calculated as per CCS(Extraordinary Pension) Rules, and scheme of Liberalized Pension Awards.
  2. Death Gratutity as per CCS(P) Rules, 1972.
  • Discharge from service due to disease/injury attributable to duty
  1. Disabilty pension calculated as per CCS(Extraordinary Pension )Rules.
  2. Retirement Gratuity as per CCS(P) Rules, 1972.
  • The Railway employee/Family will be paid DP/DR admissible from time to time in addition to the above benefits from 1.1.2004

IT Provisions

  • Government Contribution will be included in salary income.
  • Employee contribution shall be eligible for deduction under 80 CCD(2) in computation of his total income upto 10% of his salary.
  • Government contribution shall be allowed a deduction in computation of his total income, the amount contributed by the Government not exceeding 10% of salary U/S 80 CCD(1).
  • Aggregate amount of deduction Under sections 80 C, 80 CCC, 80 CCD not to exceed 1 Lakh.



Wed, 04/06/2014 - 20:37





Sun, 26/10/2014 - 18:51


                                                                                                                                                                DT:  26 Oct 2014

Railway Board Chairman

New Delhi.



Respected Sir,


Sub:Greviances regarding discrepancy observed in the remittance vide NPS and the subsequent financial loss to my personal investment-reg


May I humbly make the following submissions regarding a subject matter.

This is Bussa Sri Krishna, Sr.Asst.Locopilot of SC Depot/SC-Division/SC Railway with PF/NPS ZZ050614 and PRAN #:110040206628.I had joined services as Asst.loco pilot on dt.13-09-2005 and opted for new pension scheme.

Back in year 2008 I have applied for PRAN and I have received my PRAN kit lately in Oct-2013.

I have raised a complaint in grievance cell for the delay.


Recently I have pulled my NPS report from CRDA and realized that there is a deficit funds when compared to fellow employees who are same in all respects with my designation.

I had submitted three representations on this grievance viz; to DRM, Sr.DFM and Sr.DPO in the months of feburary, june of 2014 and as such I have not received any clarification/resolution to my grievance till date.

Hence I request your kind self to intervene and take corrective action for which kind act of yours, I will always remain thankful.

Few more details for your reference:

-My NPS contribution was deducting since Aug-2007 to till date.

-From Aug-2008 to Oct-2010 there was no Investment of funds in my account.

-Later in Oct-2013 the arrears sum of Rs.48678/-(Forty eight thousand six hundred and seventy eight) are invested  from my  contribution which was already deducted every month during Aug-2008 to Oct-2010 period along with Railway contribution.

Due belated uploading in the NPS I had to loss a huge amount.

So I request you to do the needful for the loss occurred due to belated uploading the railways


Thanking you for your positive response.

                                                                                                                                                          Yours faithfully,


                                                                                                                                                              B Sri Krishna

Sir I want to change to my mobile number in nps sceam my nps number is 2008500801100357. What is the propper way to exchange my mob number and new mobile number is 8692999091. Please helps me and thank you very much


  I do not know My new PPO no and latest pension details.I couldn’t get latest increments.plz provide me my all details regarding pension.


Name Md Owais


My pan card no_ BSPR8413H

RTD- 31/01/1994


Old ppo  NE/10218/208129/1208


Off.  20/09/1994


By FA&CAO/GKP.NE Railway,Samastipur Bihar


Date of birth 02/01/1936


With regard 


Md Owais