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New Pension Scheme 2004

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  • 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.

Comments

DEAR SIR,   I JOINED THE

DEAR SIR,

 

I JOINED THE WESTERN RAILWAY ON 05/05/2007 AND RESIGNED ON 13/01/2009. NOW I AM IN SBI IN PENSION PLAN. CAN I GET MY RAILWAY PF FUND? MY PF NO 13790833. HOW CAN I NOW MY PF BALANCE AND HOW CAN I WITHDRAW MY MY PF FUND?

Exit from NPS  scheme will be

Exit from NPS  scheme will be on attaining 60 years from Tier I.

how much helpful NPS. scheme

how much helpful NPS. scheme For new railway employees pls give a brief details

In nps tier1 auto scheme is

In nps tier1 auto scheme is there choice of selecting PFM
for railway employee

Dear sir, in railway over

Dear sir, in railway over time allowed for JE?

Overtime is allowed for each

Overtime is allowed for each Railway staff except those working in Excluded categories.

Excluded Catgry means??

Excluded Catgry means??

After retirement is employee

After retirement is employee under NPS eligble for gratuity ?

Tier II Account has not yet

Tier II Account has not yet started functioning in Railways.

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