National Pension System: RBE No.23/2025 – Refund of Employee’s Share on Return to OPS
No.2024/F(E)III/NPS1/5, dated 26.03.2025
Sub: Refund of employee’s share with returns thereon on availing benefits under Railway Services (Pension) Rules, 1993 or Railway Services (Extraordinary Pension) Rules, 1993 in the event of death of a railway servant covered under National Pension System or his discharge on the ground of disablement or invalidation.
1. The New Pension Scheme (now called as National Pension System) (NPS) was introduced vide Ministry of Finance, Department of Economic Affairs’ notification No.5/7/2003-ECB & PR, dated 22.12.2003. It was provided that the NPS would be mandatory for all new recruits to the Central Government service from 1st of January 2004 except the Armed Forces. The same was adopted on Railways vide Board’s letter No.F(E)II/2003/PN1/24, dated 31.12.2003 (RBE No.225/2003). Simultaneously, the Railway Services (Pension) Rules, 1993 and the Railway Services (Extraordinary Pension) Rules, 1993 were amended to provide that those rules would be applicable to the Government servants appointed on or before 31.12.2003.
2. However, considering the hardship being faced by the railway servants appointed on or after 01.01.2004, the benefits of the Railway Services (Pension) Rules, 1993 or the Railway Services (Extraordinary Pension) Rules, 1993, as the case may be, were extended on provisional basis, in the event of death of railway servant covered by NPS or his discharge from service on invalidation/ disablement, vide Board’s letter No.2008/AC-II/21/19, dated 29.05.2009 (RBA No.31/2009). These benefits being provisional in nature, were subject to adjustment against the final payments to be made in accordance with the Rules to be framed.
3. Thereafter, PFRDA notified PFRDA (Exits and Withdrawals under NPS) Regulations, 2015 under PFRDA Act, 2015 on 11.05.2015 (adopted on Railways vide letter No.2016/F(E)II/1(1)/3 dated 27.05.2016 (RBE No.55/2016) which stipulates that if the subscriber or the family members of the deceased subscriber, upon his death, avails the option of additional relief on death or disability provided by the Government, the Government shall have the right to adjust or seek transfer of the entire accumulated pension wealth of the subscriber to itself. Therefore, on availing the benefits under RS (Pension) Rules, 1993 or RS (Extraodinary Pension) Rules, 1993 as the case may be, by the railway servant or the family members, the entire accumulated pension corpus under NPS was transferred into the Government Account.
4. If on death of a Subscriber or his discharge from service on invalidation or disablement, benefits are payable to the family members/ railway servant under RS (Extraordinary Pension) Rules, 1993 or RS (Pension) Rules, 1993, the Government contribution and returns thereon in the accumulated pension corpus of the Subscriber shall be transferred to Government account. The remaining accumulated pension corpus shall be paid in lump sum to the railway servant or the person(s) in whose favour a nomination has been made under the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under NPS) Regulations, 2015, as the case may be.
5. In cases relating to NPS employees, where railway servant or the family member had been granted benefits under RS (Pension) Rules, 1993 or RS (Extraordinary Pension) Rules, 1993, in place of NPS in accordance with Board’s letter No.2008/AC-I/21/19 dated 29.05.2009 (RBA No.31/2009) and the entire accumulated pension corpus under NPS was transferred to the Government account, only the Government contribution with returns thereon in the accumulated pension corpus of the subscriber would be retained in Government account and remaining corpus would be paid back to the railway servant or nominee(s) or legal heir(s), as the case may be.
6. These orders shall take effect from 01.01.2004. The employee’s contribution with returns thereon would be returned to the nominee(s)/ legal heir(s)/ railway servant, as the case may be, along with interest calculated for the period from the date of death/ boarding out up to the date of payment of that amount, at rates and manner applicable to Public Provident Fund deposits from time to time.
7. In cases related to railway servants covered under NPS, where the railway servant or the family members had been granted benefits under Railway Services (Pension) Rules, 1993 and the Railway Services (Extraordinary Pension) Rules, 1993 in accordance with Board’s letter No.2008/AC-Il/21/19, dated 29.05.2009 (RBA No.31/2009) and has also been granted benefits from the accumulated pension corpus under NPS of the railway servant, the railway servant or the family member availing benefit of pension under pension rules would require to refund (in cases where NPS accumulations were not deposited into the Government account or not already refunded into Government account for availing benefit under pension rules) the Government contribution with returns thereon in the accumulated pension corpus at the time of exit from NPS along with interest (upto the date of deposit in Government account) to be calculated at the same rate and manner as in the case of State Railway Provident Fund applicable from time to time to continue to avail benefit under pension rules.
8. Further, separate instructions regarding accountal procedure mentioned in Annexure-A of DoP&PW’s O.M. No. 57/6/2021-P&PW(B), dated 14.10.2024 shall be issued by Accounts directorate separately.
Download Railway Board Circular RBE No.23/2025
Forward reference ⇒ RBE No.