GENERAL  RULES

1

The age prescribed for retirement on superannuation is 60 years for all Government servants.

2

Retirement is effective from the afternoon of the last day of the month in which age of superannuation is attained.

3

An employee whose whose date of birth is the 1^st of the month shall retire on the afternoon of the last day of the preceding month.

4

The date of retirement on superannuation will be deemed as a working day

5

In case of premature retirement/voluntary retirement, the day of retirement will be treated as a non-working day.

6

Entire gratuity will be withheld for non-vacation of quarters and during pendency of departmental or judicial proceedings

7

Life certificate should be furnished to the pension disbursing authority by the pensioner/family pensioner in the month of November every year

8

An amount equal to three months’ basic pay or Rs.8,000/- whichever is less is payable as immediate relief (Funeral Advance) to the family of an employee who dies while in service.  This amount will be recovered from the death gratuity payable.

9

Pension will be calculated and paid including the day of death of pensioner/family pensioner.

I

PROVIDENT FUND

This is paid to the employee at the time of his/her retirement from his/her own contribution to Provident Fund together with interest thereon.

II

PENSION

Its nature

2.1

A full bench of Supreme Court has declared in their historical judgment that PENSION is to live from want in one’s fall of life, with decency, independence and self respect and at a standard equivalent at the pre-retirement level.

Pension is not only compensation for loyal service rendered in the past but it has a broader significance in that it is a measure of socio-economic justice which inherits economic security in the fall of life when physical and mental prowess is ebbing corresponding to aging process and, therefore, one is required to fall back on savings.  One such saving in kind is when you give your best in the heyday of life to your employer, in days of invalidity, economics security by way of periodical payment is assured.  The term ‘pension’ has been judicially defined as stated allowance or stipend made in consideration of past service or a surrender of rights or emoluments to one retired from service.

Pension is not a bounty payable on the sweet will and pleasure of the Government.  Right to superannuation including its amount is a valuable right vesting in a government servant. (D.S. Nakara Vs UOI 1983 1 SLJ)

2.2

The Fourth Central Pay Commission declared sthat Pension stands on a high pedestal

2.3

The Fifth Central Pay Commission stated that Pension is statutory, inalienable, legally enforceable right to retired employees and it has been earned by the sweat of their brow.

2.4

Definition of Pension & its eligibility

This is a monthly recurring payment made to the Railway employees consequent upon their retirement with a qualifying service of not less than 10 years.  The amount of pension depends upon two factors, viz;:

(i)

the qualifying service rendered by the employee and

(ii)

The average emoluments drawn during the last 10 months of service.

Employees with les than 10 years of service are entitled to receive Service Gratuity in one lumpsum at half month’s emoluments for every 6 months’ service, in lieu of monthly pension.

2.5

Qualifying service:

Qualifying service means the service rendered by the employee and it commences from the date he takes charge of the post to which he is first appointed either substantively or in an officiating/temporary capacity, provided officiating / temporary service is followed, without break, by confirmation {Authority: Rule 20 of RSPR, 1993} The maximum qualifying service for reckoning pension, retirement/death gratuity is 33 years.  The following will constitute qualifying service:

a)

Pre-recruitment Training period

b)

Joining time

c)

All kinds of leave with leave salary

d)

Deputation and foreign service

e)

Extraordinary leave taken on medical grounds and extra-ordinary leave for prosecuting higher studies

f)

Military service rendered (subject to the Military authority certifying that they would have been eligible for military pension on completion of the requisite minimum number of years of service)

g)

50% Casual Labour Service rendered after attaining temporary status (in case of casual labour from 01.01.1961 and for Project Casual Labour from 01.01.1981)

h)

Full substitute service rendered after grant of temporary status followed by regular absorption.

2.5.1

In case of Voluntary retirement, weightage of service up to 5 years will be added to the qualifying service provided that:

a)

the total qualifying service including weightage does not exceed 33 years;

b)

the period after addition of weightage does not go beyond the date of normal retirement; and

c)

the weightage is given for the purpose of pension and post-retirement passes only

{Authority : Rule 68 of RSPR, 1993}

2.5.2

Benefits of added years of service

The benefit of added years of service on superannuation equal to the actual period not exceeding ¼ of the length of service or the actual period by which his age at the time of recruitment exceeded 25 years or a period of 5 years, whichever is less is admissible to the Doctors of IRMS cadre.

2.5.3

The following periods will not qualify for pension

a)

EOL taken otherwise on medical grounds and for prosecuting higher studies

b)

Service rendered before attaining the age of 18 years

c)

Periods of unauthorized absence

d)

Suspension, it not regularized as duty/leave

e)

Dies-non

2.5.4

Rounding of Qualifying Service

Less than 3 months                  Ignored

More than 3 but less than 9 months – Half year

More than 9 months – One year

(Authority : Rule 69(3) of RSPR, 1993)

2.6

‘Emoluments’ means basic pay, including stagnation increment drawn immediately before retirement/death of an employee and will also include non-practicing allowance and charge allowance.  In case of running staff, 55% of basic pay will be taken into account

(Authority : Rule 49 of RSPR, 1993)

2.7

Average emoluments

Emoluments drawn during the last ten months of service.  In case of running staff, 55% of pay and in case of Doctors, 25% of pay will also be added.  If during the last ten months of service, the employee was on EOL/Suspension, the said period will be disregarded in the calculation of average emoluments and equal period before the ten months will be taken.

The period of absence or suspension will be disregarded for calculation of Average emoluments.

In the case of railway servant who was on LAP during the last ten months, increment due, though not drawn, in the leave period not exceeding 120 days’ leave will also count for average emoluments.

In case an employee is promoted to higher grade within ten months before retirement, the pension so arrived after calculation of emoluments should not be less than 50% of the minimum of the scale of promoted grade

2.8

Calculation of pension

Pension is calculated for a qualifying service of 33 years @ 50% of the Average emoluments.  Where qualifying service s less than 33 years, proportionate pension will be sanctioned subject to a minimum of Rs.1,275/- and a maximum of Rs.15,000/- in Central Government.  Fraction of a ruppe, if any, in the pension finally calculated will be rounded off to the next higher rupee.

Where QS is less than 33 years

2.9

Illustration

Average emoluments is Rs.5,000/- and qualifying service is 33 years

Average emoluments is Rs.5,000/- and qualifying service is 22 years

2.10

Who are eligible to receive pension?

Employees who retire on superannuation / voluntary retirement/or retired compulsorily (as a measure of penalty) or Prematurely (on review of service) / invalidation having qualifying service of not less than 10 years.

2.11

Pension – Can it be withheld?

Pension and/or gratuity can be withheld or withdrawn either in full or in part whether permanently or for a specified period by the President if the railway employee is held guilty of charges of grave misconduct or negligence in the disciplinary/judicial proceedings.

2.12

Can pension be granted during pendency of departmental/judicial proceedings?

A railway servant against whom disciplinary proceedings for major penalty or judicial proceedings are pending on the date of retirement shall be granted only provisional pension and such provisional pension shall not be allowed to be commuted.

2.13

Different types of pension

Superannuation Pension

This is granted to a railway servant who is retired on his attaining the age of compulsory retirement.

Retiring Pension

This is granted to a railway servant who retires, or has retired before attaining the age of compulsory retirement.

Invalid Pension

This is granted to a railway servant who retires from service on account of any bodily or mental infirmity which permanently incapacitates him for the service

Compensation Pension

This is granted to a railway servant who is selected for discharge owing to abolition of his permanent post

Compulsory retirement pension

This is granted to a railway servant compulsorily retired from service as a penalty.  Employees who are compulsorily retired from service as a penalty may be granted by the competent authority pension or gratuity / or both at a rate not less than two thirds of pension and not more than the compensation pension admissible on the date of compulsory retirement.

Compassionate allowance

Employees whoa re dismissed or removed from service shall forfeit pension and gratuity.  However, in deserving cases, the competent authority may sanction a compassionate allowance not exceeding two thirds of pension subject to a minimum of Rs.12,75/-

III

Commutation of Pension

3.1

Employees retiring on superannuation / Voluntary retirement can commute a portion/fraction of their monthly pension not exceeding 40% (of the pension) for a lump sum payment.  Any faction in the amount offered for commutation will be ignored.  The value of the commutation of the pension will be

3.2

Commutation Value

Illustration

Basic monthly pension                     = Rs.2,500

DOR on attaining the age of superannuation    =  31.12.2002

Commutation:

40% of 2500 X 12 X 9.81  =  1000 X 12 X 9.81  =  Rs.1,17,720

NOTE:  A pensioner who has commuted a part of his pension shall receive only the balance of the pension monthly.  Dearness Relief after commutation would be calculated in the above illustration on Rs.2,500/- and not on Rs.1,500/-

3.3

In case of medical unfitness / compulsory retirement as a measure of penalty and for those who have not applied for commutation within one year, commutation will be payable after medical examination.

3.4

Restoration of commuted value of pension:

The commuted value of pension will be restored on completion of 15 years from the actual date of commutation.

NOTE:  Commutation has no effect on family pension

IV

FAMILY PENSION

4.1

Definition & entitlement

Family pension is a social security benefit paid monthly to the surviving widow/widower or minor child/parents wholly dependent on a Railway servant in the case of death of the employee irrespective of whether death occurs during service or after retirement.  This is also payable to families of removed / dismissed employees if they were in receipt of compassionate allowance at the time of death.  Post retrial spouse is also eligible for family pension.

4.2

Calculation of Family Pension

The amount of family pension is calculated @ 30% of basic pay subject to a minimum of Rs.1,275/- plus relief admissible from time to time.  Qualifying service is irrelevant for sanction of family pension at normal rates.

Family pension will be payable at the rates given below for aperiod of 7 years following the date of death of the deceased railway servant (with a minimum of 7 years qualifying service) or till the deceased employee would have reached the age of 67 years had he survived, whichever is shorter. 

a)

1 ½ times the family pension at normal rates admissible in the case of families entitled to compensation under the Workmen’s Compensation Act

Or

50% of last pay drawn by the employee or the amount of pension actually drawn by the employee whichever is the least.

4.3

Entitlement of Family Members to receive Family Pension

The family pension is payable according to the following priority: -

1

Widow/widower including judicially separated wife till her/his death or remarriage, whichever is earlier

2

Son/unmarried daughter (equal shares in the case of twins) up to the age of 25 years in the order of their birth.  The family pension payable to the son or daughter shall stop if he or she starts earning monthly income exceeding Rs.2,550/-

3

If there are more than one legally wedded wives, to all the wives, in equal shares and on the death of one widow, her share will be payable to her eligible children, failing which, to the other widow in full

4

Children of divorced wife

4.4

If two family pensions are admissible at the ordinary rate, the total of both the pensions shall not exceed Rs.2,550/-

V

RETIREMENT GRATUITY

5.1

This is a lump sum payment granted to a Railway servant or his/her nominee on his/her retirement

The amount of Retirement Gratuity depends on the qualifying service and the last pay drawn by the employees.  “Emoluments” for the purpose of calculation of Retirement/Death gratuity means last pay drawn and the full Dearness allowance admissible thereon on the date of retirement/death.  It is calculated @ ¼ th of the emoluments for each completed six monthly period of qualifying service subject to a maximum of 16 ½ times of emoluments or Rs.3.5 lacs whichever is less.

For Non-Running staff

Retirement Gratuity = (Basic Pay + DA) X QS / 2

Illustration

Basic Pay Rs.6,050/- (5000-8000) DA @ 52% (1.7.02)  

Total Qualifying Service 37 years, restricted to 33 years

For Non-running staff

Retirement Gratuity = (Basic Pay + 55% of basic pay ) + DA on basic pay plus 30% thereon  X QS / 2

Illustration

Basic Pay Rs.6,050/- (5000-8000) DA @ 52% (1.7.02) of a Passenger Guard (Running staff) retiring on 31.12.2002.     Total Qualifying Service 37 years, restricted to 33 years.   DA is calculated  on basic pay + 30% thereon, while the pay, basic pay + 55% thereon is taken into account.

                       .                                    

5.2

Death Gratuity

In case of death of Railway servant while in service, Death Gratuity is granted at the following rates depending upon the length of qualifying service put in by the deceased employees: -

Illustration

Date of death of an employee

01.12.2002

Basic pay at the time of death

Rs.10,000/-

Total qualifying service

25 years

DA @

52%

Death gratuity

=  Pay + DA X QS

=  (10,000 + 5200) X 25

= Rs 3,80,000/-

Restricted to Rs.3.5 lakhs

5.3

Ex-Gratia on death while on duty

Family of an employee who dies in harness while performing bonafide official duties shall be paid ex-gratia as follows with effect from 01.08.1997

a)

Death due to accident in the course of performance of duties or death occurring in the course of performance of duties attributable to acts of violence by terrorists, anti social elements etc   -  Rs. 5 lakhs

b)

Death occurring during enemy action in international war or border skirmishes and action against militants, terrorists, extremists etc  - Rs. 7.50 lakhs

Ex-gratia compensation shall be reduced by the compensation received from Railways, if the employee is killed in train accident while traveling on duty.

When relief is provided to the families of deceased Government servants from Prime Minister’s Relief Fund,  CM Relief Fund etc. the aggregate of the relief/ex-gratia compensation paid from different sources should not exceed Rs.10 lakhs in each individual case.

VI

LEAVE ENCASHMENT

6.1

Leave salary is a one time lump sum payment for the un-availed leave at credit at the time of retirement or death. This is limited to a maximum of 300 days of LAP.  It is calculated on the last pay drawn plus dearness allowance.  Charge Allowance, Deputation Duty Allowance and Training Allowance drawn at the time of retirement are also treated as pay for this purpose.  Other allowances such as HRA, CCA shall not be reckoned as emoluments for this purpose.  Encashment of leave is a pensionary benefits.

Formula for calculation of Leave Encashment – LAP

Basic Pay + DA  X  No. of days of LAP / 30

(Authority: Rule 550 of Indian Railway Establishment Code Vol.I – 1985 Ed)

Employees resigning from service may be granted cash equivalent of unutilized LAP to the extent of 50% of leave at credit subject to a maximum of 150 days.

6.2

Leave Encashment – LHAP

Leave on half average pay at the credit of railway servants who retire or die in service shall be allowed to be encashed with effect from 14.07.82 on the following formula, provided DA would not be taken into account on LHAP if he has been allowed encashment of LAP for 300 days

VII

DEPOSIT LINKED INSURANCE SCHEME

Deposit Linked Insurance is a lump sum payment to be paid only to the family of the deceased employee at twice the amount standing at the credit of the PF account of the deceased subject to a maximum of Rs.60,000/- provided, the following balance was maintained in the PF account during the last 3 years immediately preceding the date of death.  The deceased employees should have put in at least five years service at the time of death.

VIII

CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SCHEME, 1982

In the case of retirement of the railway servants are paid the savings fund value with interest under the Group Insurance Scheme.

In the event of death of the employee while in service, the family will be paid full insurance value plus saving fund value with interest.

Insurance amount cannot be withheld and no government dues can be recovered except the amount claimed by the financial institutions as due from the employee on account of HBA

In case of missing employees, Group Insurance shall be payable to the family after the death is conclusively established or on the expiry of 7 years period from the date of missing.

The subscription for the scheme shall be in units of RS.15/- p.m. and the amounts of Insurance cover shall be Rs.15,000/- for each unit of subscription with effect from 01.01.90.  Thus, the rate of subscription per member of the scheme and the amounts of Insurance cover shall be as follows: - 

Illustration

A Group ‘C’ employee retiring on 31.12.02, had been a member of Central Government Employees’ Group Insurance Scheme right from 01.01.1982 and contributed at Rs.20/- (two units) with effect from 01.01.1982 upto 31.12.1989 and at Rs.30/- (2 units) from 01.01.90 onwards.  The amount of savings fund accruing to him as per the table for the year of cessation of membership for 2002 is Rs.8580 X 2 = Rs.17,160/-

IX

SETTLEMENT PASS

Both in cases of retirement of death, a pass in the entitled class may be issued to a railway servant who is retiring or to his widow or family in the event of his death for travel to the railway station in India nearest his home or place of retirement.

X

COMPOSITE TRANSFER GRANT

In the event of retirement, the Railway employee and his family and in the event of death of the employee, his family members are eligible for Composite Transfer Grant.  Application for composite transfer grant should be submitted within one year from the date of death / retirement.  Power to condone delay beyond one year but up to two years is vested with the AGM.  Beyond this, proposals should be forwarded to Railway Board.

(a)

who joined Railway service on or after 01.05.76

(i)

Equivalent t one month’s basic pay.  However, in case these employees transport their personal effects by VPU, the Composite Transfer Grant will be admissible at the rate of 80% of one month’s basic pay if a car is carried in the VPU and @ 75% if no car is carried.

(ii)

Equivalent to one-third of one month’s basic pay if the retiring employee relocates within 20 Kms of city/town of the old Headquarters.

(b)

Who joined Railway service prior to 01.05.1976

(i)

In the case of Group ‘A’, ‘B’ and ‘C’ Railway employees, Composite Transfer Grant will be limited to 80% of one month’s basic pay and in the case of Group ‘D’ employees, the same will be limited to 90% of one month’s basic pay.

(ii)

For relocation within the same station/U.A or within 20 Kms of the Headquarters of the retired employees, the entitlement is equivalent to 1/3^rd of 1 month’s basic pay.

In case, the pre 01.05.1976 appointees opt to avail Kit passes on the same scales as applicable to post 01.05.1976 appointees, they are eligible to draw Composite Transfer Grant at full rates.

XI

REST HOUSE ACCOMMODATION & HOLIDAY HOMES:

Retired officers are permitted to occupy Railway rest house/rest room for a maximum period of seven days at a time.

Retired employees are eligible to book holiday homes on payment of charges of Rs.12 for Group D, Rs.25 for Group C and Rs.35 for officers up to JA grade and Rs.75 for officers above JA grade per suite per day.

XII

RETENTION OF QUARTERS

Retirement

12.1

A Railway employee on retirement including voluntary retirement may be permitted to retain the railway accommodation for a period of 4 months on payment of normal rent and the next 4 months on educational or sickness account on payment of double the normal rent.

Death

12.2

The family will be permitted to retain the Railway accommodation for a period of 2 years on payment of normal rent/flat rate of license fee/rent.  If the deceased employee has a house at the last station of posting, the family will be allowed retention of railway accommodation only for a period of one year.

XIII

MEDICAL FACILITIES

Retired railway employees/spouses of the Railway employees who die in harness covered under RELHS – 1997 will be provided with full medical facilities as admissible to serving employees under the Railway Medical Attendance Rules.

XIV

MEDICAL ALLOANCE

With effect from 01.12.197, Pensioners are entitled to a medical allowance of Rs.100/- per month if they are residing outside the City/Municipality/Town where the Railway Hospital/Health Unit/Dispensary is situated.  It is in lieu of out patient treatment and admissible irrespective of possession of medical card.

XV

POST RETIREMENT COMPLIMENTARY PASSES

Eligibility for post retirement complimentary passes is as under.  The class of pass will be determined based on the pay drawn prior to retirement.  Entitled to travel in Rajdhani/Shatabdi Express trains as per the quota prescribed by the Railway Board.

XVI

WIDOW COMPLIMENTARY PASS

1

Widow/Widower of the Railway employee is eligible for half the number of post retirement passes that the spouse would have been eligible for, after retirement.

2

The widow of any railway employee who dies while in service shall be entitled to a maximum of one set of pass every alternate year, even if the service of the deceased is less than the service prescribed for entitlement for post retirement complimentary pass.

XVII

APPOINTMENT ON COMPASSIONATE GROUND

Appointment on compassionate grounds are offered to the eligible wards, only in cases of retirement on total medical unfitness, death of the railway employee while in service and missing railway employees.  The competent authority has to consider each case on merits.

XVIII

GRANT OF SETTLEMENT DUES TO ELIGIBLE FAMILY MEMBERS OF RAILWAY SERVANT WHO HAS SUDDENLY DISAPPEARED AND WHOSE WHEREABOUTS ARE NOT KNOWN

If an employee is missing, and his whereabouts are not known, his family can be paid the following retirement benefits, provided the family has lodged a complaint with the police station concerned and obtained a report that the employee has not been traced after all efforts had been made:

a)

Benefits payable in the first instance  Salary due, leave encashment and the accumulations in the provident fund

b)

 After the expiry of one year Retirement gratuity and family pension at normal rates and accumulations under the savings fund under the CGEGIS.

c)

After two years - Compassionate appointment to the eligible ward on condition that the appointment would be cancelled when the employee is traced.  This facility is, however, subject to the condition that the missing employee has more than 2 years of service to retire from the date he is reported missing and is not suspected to have committed fraud/joined terrorist organisation/gone abroad.  The powers to consider such compassionate ground appointments are vested with the General Manager.

d)

 After seven years Difference between the retirement gratuity and death gratuity, insurance cover admissible under group insurance.

XIX

EXEMPTION FROM INCOME TAX

The following retirement/death benefits are fully exempt from Income Tax