NPS: RBE No.70/2021 – Employees of Central Autonomous Bodies
No.D-43/12/2018-F(E)III, dated 29.09.2021
Sub: Applicability of Gazette Notification No.1/3/2016-PR, dated 31.01.2019 issued by the Department of Financial Services (DFS), Ministry of Finance to the employees of the Autonomous Bodies covered under NPS.
1. Copy of Department of Expenditure’s OM No.1(3)/EV/2020, dated 26.08.2021 on the above cited subject is enclosed for information and compliance. These instructions shall apply mutatis mutandis on all the Autonomous Bodies under the Administrative control of Ministry of Railways also. Department of Financial Services’ Gazette Notification No.1/3/2016-PR, dated 31.01.2019 and Department of Expenditure’s Gazette Notification No.1(13)/EV/2001, dated 13.11.2003, mentioned in aforesaid OM dated 26.08.2021, have been adopted on Railways vide letter Nos.D-43/12/2018-F(E)III, dated 21.02.2019 (RBE No.33/2019) and F(E)III/2011/NPS/1, dated 23.04.2012 (RBE No.53/2012), respectively.
2. As advised by the Department of Expenditure, Ministry of Finance, vide the enclosed OM, the financial implications shall be borne in the same manner as conveyed by Ministry of Finance vide the OM No.1/12016-E.III(A), dated 13.01.2017.
Ministry of Finance
Department of Expenditure
OM No.1(3)/EV/2020, dated 26.08.2021
OFFICE MEMORANDUM
Sub: Applicability of Gazette Notification No.1/3/2016-PR, dated 31.01.2019 issued by the Deptt. of Financial Services (DFS), Ministry of Finance to the employees of Central Autonomous Bodies covered under NPS.
1. The undersigned is directed to refer to Department of Financial Services’ Gazette Notification No.1/3/2016-PR, dated 31.01.2019, inter-alia, enhancing the employer’s share of contribution for Central Government NPS subscription from 10% to 14% w.e.f. 01.04.2019. Consequent upon issuance of the said notification, PFRDA as well as Ministry/ Department have sought clarification from this Department, if the notification dated 31.01.2019 is applicable to the NPS born employees of the Central Autonomous Bodies.
2. The employees of Central Autonomous Bodies (CABs) are not Central Government employees and therefore the aforesaid provisions of the notification dated 30.01.2019 is not directly and automatically applicable in respect of CAB employees. Also, as CABs are financially dependent on grant-in-aid from the Central Government for this administrative and establishment expenditure and such enhancement in the employer’s contribution having budgetary implications warrants prior approval of the Central Government. It may be noted that NPS was introduced in respect of employees of CABs through a separate order of this Department OM No.1(13)/EV/2001, dated 13.11.2003.
3. However, it has been observed that despite no prior sanction from the Ministry of Finance, the employer’s contribution was enhanced to 14% of Pay & DA in respect of employees of a number of CABs. It is brought to notice that such internal and suo-moto decisions by the CABs/ Administrative Ministries are contrary to the Delegation of Financial Powers and tentamount to un-authorized expenditure. Any recurrence of such un-authorized and improper decision will result in enforcement of personal accountability of the administrative and financial staff of the organization/ Ministry and the Head of the organization thereof through disciplinary action and/or financial recoveries.
4. The issue has further been examined by this Department and taking into consideration all the factors, it has been decided that the notification dated 31.01.2019 may be extended to the employees of Central Autonomous Bodies. The date of effect will be same as applicable in case of Central Government employees i.e. 01.04.2019. The administrative Ministry/ Departments are directed to ensure that while implementing the enhanced share of contribution among the autonomous bodies, the financial implication shall be borne by the Government in the same manner, as was decided to be borne while implementing the pay revision benefits to employees of autonomous bodies in terms of the 7th CPC recommendation as enumerated vide this Department’s order No.1/1/2016-E.III(A), dated 13.01.2017.
5. This has the approval of Hon’ble Finance Minister.
Download Railway Board Circular RBE No.70/2021
Forward reference ⇒ RBE No.