Table of Contents

Entitlement on Resignation from Railway Service for Employees Under the National Pension System (NPS)

Railway Board Order RBE No. 113/2024, Dated 24th December 2024

Introduction to NPS Entitlement on Resignation

The National Pension System (NPS) was introduced for new recruits in Central Government services from 1st January 2004, including Indian Railways. RBE No. 113/2024, issued on 24th December 2024, outlines the entitlement of railway servants covered under NPS when resigning from service, detailing the process of pension settlement and the options available to employees after resignation.

Key Provisions of RBE No. 113/2024

1. NPS Resignation Procedure

Upon resignation from railway service, the accumulated pension corpus of the railway servant under NPS will be disbursed according to the PFRDA regulations. The disbursement will include:

Lump sum payment from the accumulated pension balance.
Annuity payment based on the exit guidelines for NPS subscribers before superannuation.

2. Waiting Period for Payment

Lump sum and annuity payments will only be processed 90 days after resignation becomes effective and the employee is relieved from duty.
This 90-day waiting period allows the settlement of pension funds according to the NPS guidelines.

3. Early Death of the Subscriber

If the railway servant dies within 90 days after the resignation becomes effective:

The pension payments will be made immediately to the eligible beneficiary or nominee as per PFRDA regulations for cases of exit before superannuation.

4. Option to Continue NPS Subscription After Resignation

A railway servant who resigns from service has the option to continue contributing to NPS as a non-Government subscriber. The railway servant can:

Continue using the same Permanent Retirement Account Number (PRAN).
Adhere to the regulations laid out by PFRDA for non-Government subscribers.

Background of the National Pension System (NPS)

NPS Introduction

The National Pension System (NPS) was introduced by the Ministry of Finance, Government of India through notification No. 5/7/2003-ECB & PR, dated 22nd December 2003.
NPS became mandatory for all new recruits to Central Government services from 1st January 2004, except for those in the Armed Forces.
Indian Railways adopted the NPS system through the Railway Board’s letter No. F(E)III/2003/PN1/24 dated 31st December 2003.

NPS Regulations on Resignation

The provisions regarding entitlement on resignation align with the exit regulations under PFRDA, ensuring that railway servants covered under NPS can access their pension benefits in an organized manner upon leaving the service.

Conclusion: Understanding NPS Resignation Benefits for Railway Employees

RBE No. 113/2024 clearly outlines the steps and provisions for railway servants resigning from service and covered under the National Pension System (NPS). These provisions include:

90-day waiting period for pension disbursement.
Immediate release of benefits in case of death within the waiting period.
The option to continue NPS subscription as a non-Government subscriber with the same PRAN.

For detailed information, refer to RBE No. 113/2024, issued by the Railway Board on 24th December 2024.

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Entitlement on Resignation from Railway Service for Employees Under the National Pension System (NPS)