National Pension System applicability to Railway Servants under Compulsory Retirement/Dismissal/Removal: Railway Board
RBE No. 15/2025
GOVERNMENT OF INDIA (BHARAT SARKAR) MINISTRY OF RAILWAYS (RAIL MANTRALAY) (RAILWAY BOARD)
No. 2025/F(E)III/NPS1/1
New Delhi, dated: 13.02.2025
The General Managers/Principal Financial Advisers, All Zonal Railways/Production Units etc., DGs of RDSO and NAIR.
Subject: Effect of compulsory retirement or dismissal or removal from railway service on the accumulated pension corpus under NPS in respect of railway servant covered under the National Pension System -reg.
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 Armed Forces. The same was adopted on Railways vide Board’s letter No. F(E)I11/2003/PN1/24 dated 31.12.2003.
2. In cases where a railway servant covered under NPS is compulsorily retired from service as a penalty or is dismissed or removed from railway service, the lump sum and the annuity out of his accumulated pension corpus shall be paid to him in accordance with the regulations notified by Pension Fund Regulatory and Development Authority (PFRDA) payable to the Subscriber as admissible in the case of exit of a Subscriber from National Pension System before superannuation.
3. However, the railway servant, at his option, may continue to subscribe to the NPS with the same Permanent Retirement Account Number as a non-Government subscriber, in accordance with the regulations notified by the PFRDA.
4. The above provisions shall, however, be without prejudice to any action being taken in respect of gratuity and other retirement benefits admissible to such railway servants and those benefits shall be regulated in accordance with the rules as applicable to such benefits.
(Ramesh Chandra Pandey) Dy. Director Finance (Estt.)-III Railway Board
Railway Board Clarification: TA/DA Arrears Payable After Rate Revision (This is concise and clear)
GOVERNMENT OF INDIA MINISTRY OF RAILWAYS RAILWAY BOARD
RBE No. 07/2025 New Delhi, dated 27.01.2025
No. F(E)I12024/A1-28/34
The General Managers/Principal Financial Advisers, All Zonal Railways & Production Units etc, DGs of RDSO and NAIR.
Sub : Payment of difference/arrears of TA/DA arising out of enhancement of rate by 25% upon revision of DA to 50% w.e.f. 01.01.2024 – clarification – reg.
2. However, a doubt has been raised by some Railways regarding admissibility of claims for payment of difference of TA/DA, where TA/DA had been paid at old rates in respect of official tours made on or after 01.01.2024, consequent to increase in the rates of TA/DA by 25% w.e.f. 01.01.2024.
3. The matter has been examined in Board’s office and it is clarified that as per para-3 of Board’s above-mentioned letter dated 05.06.2024, the revised rates of TA/DA shall be applicable w.e.f. 01.01.2024. Therefore, any payment of difference/arrears arising out of this retrospective revision of rates of TA/DA will also be payable.
4. This also disposes of Central Railway’s letter No. AC/ENG/IPAS/Nodal/TA Arr/2024 dated 19.11.2024 and Southern Railway’s letter No. P.508/EG/Arrears of TA/DA 50%, dated 23.08.2024.
Hindi version will follow.
(Sanjay Prashar) Jt Director, Finance (Estt) Railway Board.
Delay in AICPIN for Dec 2024 Release: Impacts Government Employees, Pensioners
The delay in the release of the All-India Consumer Price Index for Industrial Workers (CPI-IW) for December 2024 is causing significant concern among government employees and pensioners. This crucial data, used to calculate Dearness Allowance (DA) and Dearness Relief (DR), was due on January 31, 2025, according to the Labour Bureau’s official advance release calendar. This unexplained delay is leaving millions in a state of uncertainty, impacting their financial planning and livelihoods.
The CPI-IW serves as a key inflation indicator, directly influencing wage and pension adjustments. For pensioners and salaried individuals, especially those on fixed incomes, timely DA/DR revisions are essential to cope with rising prices.
The Bharat Pensioner Samaj has taken up the issue and sent a formal letter to the Honorable Minister of Labour & Employment, demanding the immediate release of the December 2024 CPI-IW data. The letter highlights the severe impact of the delay, emphasizing the financial hardship faced by pensioners who rely on timely DA/DR adjustments. The Bharat Pensioner Samaj’s communication also underscores the potential damage to the credibility of the Labour Bureau and the government’s commitment to transparency when pre-scheduled releases are delayed without explanation.
The Bharat Pensioner Samaj is not only demanding the immediate release of the December CPI-IW but also insisting on preventive measures to avoid similar delays in the future. Furthermore, they are calling for an official statement explaining the reason for the current delay and outlining the steps being taken to ensure timely data release going forward. The continued silence on this matter only serves to heighten anxieties and reinforces the need for swift and decisive action from the concerned authorities.
Grant of Fixed Medical Allowance to Central Government employees covered under National Pension System: DOPPW O.M dt 11.02.2025
No. 04/07/2020-P& PW (D) Government of India Ministry of Personnel, Public Grievances and Pensions Department of Pension & Pensioners’ Welfare
Lok Nayak Bhawan, Khan Market, New Delhi, Dated: 07th February, 2025
OFFICE MEMORANDUM
Subject: Grant of Fixed Medical Allowance (FMA) to Central Government employees covered under National Pension System – reg.
Undersigned is directed to refer to the Department of Pension & Pensioners’ Welfare’s OM of even number dated 06.12.2023 extending the benefit of Fixed Medical Allowance to the Central Government civil employees covered under the National Pension System (NPS) on their retirement from service and who are eligible for CGHS facility but are residing outside CGHS area as per the applicable rate, if they do not avail any CGHS facility or avail only the IPD facility under CGHS.
2. The above instructions also include prescribed forms and formats for claiming the benefit of FMA by above employees. These forms and formats have been revised including PRAN details in these forms / formats as per the reference received from the office of Controller General of Accounts vide their ID note No. TA-3-6/3/2020-TA-III-Part(1)/11948/412 dated 18.12.2024. Revised Forms /Formats to be used for the above purpose are enclosed with this OM.
3. As informed by the Office of CGA vide their ID note dated 18.12.2024, the revised Head of Account for this purpose would be as under:
2071
Pensions and other Retirement Benefits
2071.01-
Civil
2071.01.101
Superannuation and Retirement Allowances
2071.01.101.01
Ordinary Pensions
2071.01.101.01.00.04
Superannuation and Retirement Allowances,
071.01.101.04
Ordinary Pensions (AIS)
2071.01.101.04.00.04
Superannuation and Retirement Allowances, Ordinary Pension (AIS)
2071.01.101.05
Additional Relief on Death/Disability of Government Servants Covered by the New Defined Contribution Pension Scheme (NPS) Ordinary Pensions (Invalid Pension)
2071.01.101.05.00.04
Superannuation and Retirement Allowances, Additional Relief on death/disability of Government Servants covered by the New Defined Contribution Scheme (NPS) Ordinary Pension (Invalid Pension)
2071.01.105.02.00.04
Family Pension
4. It is also clarified that the rate of FMA prescribed for Central Government employees retired under NPS is equal to the rate of FMA granted to Central Government employees covered under old pension scheme i.e. Rs 1000/- per month. However, the release of FMA into the account of the Central Government employee retired under NPS had been prescribed vide OM dated 06.12.2023 on quarterly basis through the respective bank.
5. It is further clarified that the release of FMA for the period September to November shall be in the first week of December. However, the release of FMA from the month of December onwards shall be subject to submission of life Certificate by the beneficiary.
6. Hindi version will follow.
Encl: as above
(S. Chakrabarti) Under Secretary to the Government of India
Re-engagement of retired employees in Railways – Rajya Sabha QA
GOVERNMENT OF INDIA MINISTRY OF RAILWAYS RAJYA SABHA UNSTARRED QUESTION NO. 610 ANSWERED ON 07.02.2025
RE-ENGAGEMENT OF RETIRED EMPLOYEES IN RAILWAYS
610. SHRI A.A. RAHIM:
Will the Minister of RAILWAYS be pleased to state:
(a) the number of retired employees who have been re-engaged by the Railways in the last three years;
(b) the number of vacant posts remain unfilled by new recruits during the same period; and
(c) the criteria used to determine the necessity of re-engaging retired staff instead of hiring qualified young candidates?
ANSWER
MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND ELECTRONICS & INFORMATION TECHNOLOGY (SHRI ASHWINI VAISHNAW)
(a) to (c) : Occurrence and filling up of vacancies is a continuous process on Indian Railways considering its size, spatial distribution and criticality of operation. Adequate and suitable manpower is provided to cater to the regular operations, changes in technology, mechanization and innovative practices. The vacancies are filled up primarily by placement of indents by Railways with Recruitment agencies as per operational and technological requirements.
After easing of restrictions imposed on account of COVID 19, two major examinations involving more than 2.37 crore candidates had been conducted successfully during 2020 to 2022.
Exam
Candidates
Cities
Centres
Days
Shifts
L2 – L6
1.26 cr
211
726
68
133
L1
1.1 cr
191
551
33
99
Based on these exams, 130581 candidates have been recruited in Railways.
The RRB examinations are quite technical in nature entailing large scale mobilization of men and resources and training of manpower. Railway overcame all these challenges and successfully conducted the recruitment in a transparent manner following all laid down guidelines. No instance of paper leakage or similar malpractice has occurred during the entire process.
Recruitment done in Indian Railways during 2004-2014 vis-à-vis during 2014-2024 is given as under:-
Period
Recruitments
2004-2014
4.11 lakh
2014-2024
5.02 lakh
Further, as system improvement, the Ministry of Railways has introduced a system of publishing the annual calendar from 2024 for recruitment to various categories of Group ‘C’ post. The introduction of the annual calendar will benefit the aspirants in the following manner:
More opportunities for candidates;
Opportunities to those becoming eligible every year;
Certainty of exams;
Faster Recruitment process, Training and Appointments
Accordingly Ten Centralized Employment Notifications (CENs) for 92,116 vacancies have been notified during January to December 2024 for filling up of posts of Assistant Loco Pilots, Technicians, Sub-Inspectors, Constables in Railway Protection Force (RPF), Junior Engineers (JEs)/ Depot Material Superintendent (DMS)/ Chemical & Metallurgical Assistant (CMA),
Paramedical Categories, Non-Technical Popular Categories (Graduate) and Non-Technical Popular Categories (Under-Graduate), Ministerial & Isolated Categories and Level-1.
For four notifications, Computer Based Tests (CBTs) have been completed from 25.11.2024 to 30.12.2024. The details are as under:-
Exam
Candidates
Cities
Centres
Days
Shifts
1st Stage CBT for the post of ALP (18,799 vacancies)
18,40,347
156
346
5
15
CBT for the post of RPF-SI (452 vacancies)
15,35,635
143
306
5
15
1st Stage CBT for the post of JE/DMS/CMA (7,951 vacancies)
11,01,266
146
323
3
9
CBT for the post of Technician (14,298 vacancies)
22,83,812
139
312
9
27
However, sometime in order to meet exigencies, retired Railway employees are re-engaged against the vacant posts temporarily based on competency, experience etc. to ensure smooth progress of the developmental and other works.
New Delhi, February 4, 2025: The Ministry of Finance, Department of Expenditure, addressed concerns regarding the withheld Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners during the Rajya Sabha session today. The issue was raised through Un-Starred Question No. 236 by Shri Javed Ali Khan and Shri Ramji Lal Suman.
In response, Shri Pankaj Chaudhary, Minister of State in the Ministry of Finance, acknowledged the freeze of three DA/DR installments, due from January 1, 2020, July 1, 2020, and January 1, 2021. The Minister cited the unprecedented economic disruption caused by the COVID-19 pandemic as the primary reason for this decision, emphasizing the strain it placed on government finances.
In a clarification provided to the Rajya Sabha today, the government reiterated that releasing the 18 months of Dearness Allowance (DA) arrears for central government employees and pensioners remains unfeasible due to continued fiscal constraints.
Rajya Sabha QA
Government of India Ministry of Finance Department of Expenditure
Rajya Sabha Un-Starred Question No 236 To be answered on Tuesday, 4th February 2025 Magha 15, 1946 (Saka)
Releasing of withheld DA and DR
236: Shri Javed Ali Khan: Shri Ramji Lal Suman :
Will the Minister of Finance be pleased to state
(a) Whether Dearness Allowance (DA) and Dearness Relief (DR) for Central Government employees and pensioners were withheld for 18 months during the COVID-19 and not seized;
(b) If so, the details thereof and the reasons as to why Government has seized it;
(c) Whether Government would release the same to ensure spending by Government employees and thereby help in boosting the faltering economy of the Country;
(d) If so, the details thereof; and
(e) If not, the concrete reasons therefor?
Answer Minister of State in the Ministry of Finance (Shri Pankaj Chaudhary)
(a) to (e) The decision to freeze three installments of Dearness Allowance (DA) / Dearness Relief (DR) to Central Government employees/ pensioners due from 01.01.2020, 01.07.2020 & 01.01,2021 was taken in the context of COVID-19, which caused economic disruption, so as to ease pressure on Government finances. The adverse financial impact of pandemic in 2020 and the financing of welfare measures taken by the Government had a fiscal spill over beyond FY 2020-21. Therefore, arrears of DA/DR were not considered feasible.
भारत सरकार ने 8वें केंद्रीय वेतन आयोग (सीपीसी) के गठन की पुष्टि कर दी है, जो केंद्र सरकार के कर्मचारियों और पेंशनभोगियों के लिए एक महत्वपूर्ण घटनाक्रम है। यह जानकारी राज्यसभा में एक अतारांकित प्रश्न (संख्या 237) के उत्तर में सामने आई, जिसका जवाब 4 फरवरी, 2025 को वित्त राज्य मंत्री श्री पंकज चौधरी ने दिया।
श्री जावेद अली खान और श्री रामजी लाल सुमन द्वारा पूछे गए प्रश्न में 8वें सीपीसी के गठन के बारे में विवरण मांगा गया था, जिसमें यह भी शामिल था कि क्या केंद्रीय मंत्रिमंडल ने जनवरी 2025 में अपनी मंजूरी दी है। मंत्री ने आयोग के गठन के लिए सरकार की मंजूरी की पुष्टि की।
हालांकि, 8वें सीपीसी के नेतृत्व और समय-सीमा के बारे में महत्वपूर्ण विवरण अभी तक सार्वजनिक नहीं किए गए हैं। जब अध्यक्ष और सदस्यों की नियुक्ति और आधिकारिक अधिसूचना जारी करने के बारे में पूछा गया, तो मंत्री ने कहा कि इन मामलों पर “यथासमय निर्णय लिया जाएगा।” इसी तरह, 8वें सीपीसी द्वारा सरकार को अपनी रिपोर्ट सौंपने की समय-सीमा भी अभी तक निर्धारित नहीं की गई है।
यह घोषणा लाखों केंद्र सरकार के कर्मचारियों और पेंशनभोगियों के वेतन और लाभों को संशोधित करने की प्रक्रिया की शुरुआत का प्रतीक है। जबकि 8वें सीपीसी की पुष्टि एक स्वागत योग्य विकास है, इसकी संरचना और समय-सीमा के बारे में विशिष्ट विवरणों की कमी कुछ सवालों को अनुत्तरित छोड़ देती है। कर्मचारी और पेंशनभोगी इन महत्वपूर्ण पहलुओं के बारे में सरकार की आगे की घोषणाओं पर बारीकी से नजर रखेंगे। उम्मीद है कि आने वाले महीनों में सरकार द्वारा 8वें केंद्रीय वेतन आयोग के गठन और संचालन के साथ आगे बढ़ने पर और जानकारी जारी की जाएगी।
Rajya Sabha QA
OVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE
RAJYA SABHA UNSTARRED QUESTION No.237
TO BE ANSWERED ON TUESDAY, FEBRUARY 04, 2025 15 MAGNA, 1946 (SAKA)
“CONSTITUTION OF 8th CENTRAL PAY COMMISSION”
237: SHRI JAVED ALI KHAN: SHRI RAMJI LAL SUMAN:
Will the Minister of Finance be pleased to state:
(a) whether Union Cabinet has approved constitution of 8th Central Pay Commission (CPC) for Central Government employees and pensioners during January, 2025;
(b) if so, the details thereof;
(c) by when the Chairperson and Members of the 8th CPC would be appointed and by when notification for it’s constitution would be issued; and
(d) the timeline for 8th CPC for submission of it’s report to the Government?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)
(a) & (b): The Government has approved constitution of the 8th Central Pay Commission.
Central Government has confirmed the formation of the 8th Central Pay Commission (CPC), a significant development for Central Government employees and pensioners. This information came to light in a Rajya Sabha unstarred question (No. 237) answered on Tuesday, February 4, 2025, by the Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary.
The question, posed by Shri Javed Ali Khan and Shri Ramji Lal Suman, sought details regarding the 8th CPC’s constitution, including whether the Union Cabinet had granted its approval in January 2025. The Minister confirmed the government’s approval of the commission’s formation.
However, key details regarding the 8th CPC’s leadership and timeline remain undisclosed. When asked about the appointment of the Chairperson and Members, and the issuance of the official notification, the Minister stated that these matters “will be decided in due course.” Similarly, the timeline for the 8th CPC to submit its report to the government is yet to be determined.
This announcement marks the beginning of the process for revising the pay and benefits of millions of Central Government employees and pensioners. While the confirmation of the 8th CPC is a welcome development, the lack of specific details regarding its composition and timeline leaves some questions unanswered. Employees and pensioners will be closely following further announcements from the government regarding these crucial aspects. It is expected that further information will be released in the coming months as the government progresses with the formation and operationalization of the 8th Central Pay Commission.
OVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE
RAJYA SABHA UNSTARRED QUESTION No.237
TO BE ANSWERED ON TUESDAY, FEBRUARY 04, 2025 15 MAGNA, 1946 (SAKA)
“CONSTITUTION OF 8th CENTRAL PAY COMMISSION”
237: SHRI JAVED ALI KHAN: SHRI RAMJI LAL SUMAN:
Will the Minister of Finance be pleased to state:
(a) whether Union Cabinet has approved constitution of 8th Central Pay Commission (CPC) for Central Government employees and pensioners during January, 2025;
(b) if so, the details thereof;
(c) by when the Chairperson and Members of the 8th CPC would be appointed and by when notification for it’s constitution would be issued; and
(d) the timeline for 8th CPC for submission of it’s report to the Government?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)
(a) & (b): The Government has approved constitution of the 8th Central Pay Commission.
It is requested that Standing Committee Meeting of the NC-JCM should also be called for discussions the Terms of Reference of the 8th CPC in details before finalising it.
Term of Reference for 8th CPC to be forwarded by Secretary Staff Side NC (JCM)
A. To examine the existing structure of pay, Allowances and other benefits / facilities, retirement benefits like pension / gratuity and other terminals benefits etc. to the following categories of employees:-
Central Government employees-industrial and non industrial.
Personnel belonging to All India services.
Personnel belonging to the Defence Forces and Para Military Forces.
Personnel called as Grameen Dak Sewaks belonging to the Postal Department.
Personnel of Union Territories
Officers and employees of the Indian Audit and Accounts Department.
Officers and employees of the Supreme Court.
Members of Regulatory bodies (excluding RBI) set up under Act of Parliament.
Employees of Central Government Autonomous Bodies and Institutions
B. To work out the comprehensive revised pay packet for the categories of Central Government Employees mentioned in (A)above as on 1.1.2026.
C. The Commission will determine the Pay structure, benefits, facilities, retirement benefits, welfare matters etc taking in to account to provide the minimum wage as a “ Decent and dignified Living Wage” with reference to the recommendation of the 15 Indian Labour Conference (1957 with modifications in the Dr. Aykroyd formula considering the developments and life requirements which has undergone changes in last 65 years and also the various Judgments of Hon’ble Supreme Court Judgments on fixing the minimum wages as on 1.1.2026. The Commission also consider to increase the consumption units from 03 family units to 3.6 family units as recommended by an expert committee constituted by Ministry of Labour and Employment to determine the National Minimum Wage Policy in the year 2019.
D. The 8th CPC should consider the merger of non-viable Pay scales such as Level-1 with Level-2 and Level- 3 with Level-4 and Level 5 with Level-6.
E. To consider the existing anomalies in the MACP scheme and to recommend minimum 5 promotion in service with very defined Hierarchical Structure and MACP in the Promotional Hierarchy.
F. To determine the Interim Relief to be sanctioned immediately to the Central Government employees and pensioners mentioned in (A) above.
G. To determine the percentage of Dearness Allowance / Dearness Relief immediately to be merged with Pay & Pension.
H. To settle the various 7th CPC Anomalies which the Staff Side raised in the Anomaly Committee meetings and JCM meetings.
I. To Workout the improvements needed to the existing retirement benefits like pension, Death cum retirement Gratuity, Family pension, restoration of commuted portion of pension after 12 years, implementation of Parliamentary Standing Committee recommendations for enhancement of pension after every 5 years, parity amongst past, future pensioners
J. To review and to restore the defined and non contributory Pension Scheme Under CCS (Pension Rules) 1972 (Now 2021) to the Central Government employees recruited on or after 1/1/2004.
K. To recommend the parliamentary Standing Committee recommendation on CGHS related matter FMA and to recommend methods for providing cashless / hassle-free Medical facilities to the employees and Pensioners including Postal Pensioners.
L. To review and recommend Children Education Allowance and Hostel Subsidy upto the Post Graduation Level.
M. To review and recommend introduction of such advances which are required in the current circumstance and also to restore the advance which are abolished.
N. To consider Payment of Risk and Hardship Allowance to all the categories of Railway employees in the Indian Railways, considering the Risk and Hardship involved in the nature of duties of the Railway employees who work round the clock on all 365 days.
O. To consider the highly, perennial, risky and hazardous working conditions under which the Defence Civilian Employees involved in Manufacturing Arms, Ammunitions, Chemicals, Explosives & Acids etc., and also in its storage and to recommend a Special Risk Allowance, Insurance Coverage, Compensation etc.,.
State Railway Provident Fund – Rate of interest from January 2025 to March 2025
GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD)
No. F(E)III/2003/PF-1/1
New Delhi, Dated: 28.01.2025
The General Managers/Principal Financial Advisers, All Zonal Railways/Production Units etc., DGs of RDSO and NAIR.
Subject: State Railway Provident Fund-Rate of interest during the 4th Quarter of financial year 2024-25 (1st January, 2025 — 31st March, 2025).
A copy of Department of Economic Affairs, Ministry of Finance’s Resolution F.No. 5(3)-B(PD)/2023 dated 3rd January, 2025 prescribing interest at the rate of 7.1%(Seven point one per cent) w.ef. 1° January, 2025 to 31° March, 2025 on accumulations at the credit of the subscribers to State Railway Provident Fund, is enclosed for information and necessary action.
(G. Priya Sudarsani) Director, Finance (Estt.) Railway Board
