The instructions issued by the Railway Board from time to time on the subject of "Grant of extension in service/ Re-employment of Railway servants after superannuation" are contained in several letters, The Railway Board have now decided to issue a master circular, as below, Consolidating all the instructions issued so far on the subject, for the information and guidance of all concerned.

General:

2. The term extension of service refers to the continuance in service of a Railway servant, beyond the age of superannuation, in the same cadre post without his/her severing connections with the Railway on superannuation.

2.1 The term re-employment would refer to a Railway servant being employed again after superannuation. As against extension in service, in re-employment, a Railway servant after having ceased his/her connection with the Railway on superannuation is appointed afresh.

Criteria for grant of extension of service/ re-employment:

3. Extension of service/re-employment of a Railway servant after superannuation is a damper on service as a whole, often leading to denial of/delay in or deferment of promotion to Railway servants down the hierarchical line, consequently causing loss or morale, loss of initiative and frustration.

(Ref.: Board's letter No. PC-65 EM 1/9  dated 22.2.1965
 and Secretary/Rly. Bd. D.O. letters No. E(P&A)I-83 EM 1/3  dated 4.2.1983)

Therefore, as a policy, no Railway servant should be retained in service beyond the age of superannuation/offered re-employment thereafter, except rarely in exceptional circumstances where it is clearly warranted by public interest and proposals in this regard are required to be submitted to Railway Board for obtaining approval of the Minister-in-charge, Exceptional circumstances should really be exceptional.

3.1 The over-riding consideration for proposing the grant of extension of service/ re-employment after superannuation should be, that it should be clearly, in Public interest, and in addition should satisfy either of the followings: -

a.     that the other Railway servants are not ripe enough to take over the job and

b.     that the retiring Railway servant is of outstanding merit.

3.2 No extension of service or re-employment after superannuation should be granted to a Railway servant on the ground that a suitable successor is not available, unless it is established that action to select and train a suitable successor had been taken well in advance but it had not been possible to find one in time. Also the grant of extension of service/ re-employment to a Railway servant's predecessor should not by itself justify the consideration of a proposal to the grant of extension/ re-employment.

(Ref.: - Board's letters No. PC-65 EM 1/9  dated 22.2.1965,
 PC-67/EM 1/46 dated 01.03.1968
 Rule 405(1),(2)and (3) of Estt. Code Vol. I/1985)

Non–scientific /Non-technical Personnel:

4. While ordinarily no extension of service/ re- employment after superannuation, should be considered in the case of non-scientific/ non- technical personnel, for whom replacement is not difficult, 60 years of age should be considered as the deadline where extension/ re-employment is granted in public interest. No proposal for further continuance beyond 60 years of age should be considered.

(Ref: - Board's letter No. PC-66 EM 1/45 dated 27.7.1966)

Scientific and Technical Personnel:

4.1. In respect of Scientific and Technical personnel, who have been, subject to their suitability and fitness granted extension of service/re-employment, after superannuation, Warranted by public interest, 62 years of age should be observed as the limit upto, which they can be continued. Where the Railway servants so continued after superannuation are of outstanding merit and there is shortage of officers in the particular field of specialisation, further extension/ re-employment may be allowed, subject to their fitness and suitability for work upto a higher age limit, provided there is none ripe enough to take over.

(Ref.: - Board's letter No. PC-65 EM 1/9  dated 22.2.1965
 and PC-66 EM 1/45 dated 27.7.1966).

4.2 Scientific and Technical personnel are those, who hold posts for which qualifications in the natural/ exact sciences or applied sciences or in technology have been prescribed and who have to use that knowledge in the discharge of their duties (as distinct from duties in general or administrative posts).

Technical personnel holding non-technical and general posts will not be eligible to be considered for the grant of extension in service/ re-employment after superannuation on the norms indicated in para 4.1 above, if their services are to be continued after superannuation in non-technical and general posts.

(Ref. - Board's letter No. E(G)62 EM 1/9  dated 22.6.1962)

Powers:

5. All proposals for grant of extension of service/ re-employment after superannuation should be referred to the Board with the prior personal approval of the General Manager. Proposals should be sent only in very exceptional cases, where justified absolutely in public interest.

(Ref: Board's letter No. E(P&A)I-77 EM 1/25  dated 10.5.1977)

5.1. Before a proposal is forwarded the character roll and personal file of the Railway servant concerned should be carefully scrutinised and all relevant information available should be taken into account to determine if the Railway servant has a good reputation for integrity and honesty. In addition the competent authority should furnish a certificate, as given below, after invariably consulting the Vigilance Branch of the Railway Administration.

Certificate

"Having scrutinised the character Roll and Personal file of Shri/ Shrimati/ Kumari ...... ...... ......  ...... ..... and having taken into account all other available information, I certify that he/she has a good reputation for integrity and honesty".

(Ref: Board's letters No. PC-64 EM 1/74  dated 17.10.1964,
 13.01.65 and E(P&A)I-76 EM 1/43  dated 22.5.1976)

5.2 No Railway servant who has been dismissed or removed or compulsorily retired from service or convicted for a criminal offence shall be re-employed without the sanction of the president, When the re-employment is to a Group 'C' or Group 'D' post, the sanction of the General Manager is necessary, subject to the following: -

(Ref: Rule 402 & note there under of IREC Vol. I, 1985)

Other provisions:

6.1 A Railway servant, who has been granted extension of service after superannuation, will not be eligible for promotion to another post during the period of extension.

(Ref: 405(6) - Estt. Code Vol. I/1985)

6.2 Similarly, a Railway servant who has been granted re-employment after superannuation will not be eligible for assignment of seniority, for advancement.

6.3 To provide for any eventuality for curtailing the period of extension/ re-employment the order granting an extension of service/ re-employment should include a clause, providing for the termination of service after a notice of three-months/one month or on Payment of Pay and allowances, in lieu of such notice.

(Ref: Board's letter No. E(P&A)I-83 EM 1/3  dated 2.8.1983)

6.4 A Railway servant who has retired from service voluntarily/ prematurely on his own option available to him under the relevant rules/ orders cannot be granted re-employment by the Railway Administration.

(Ref: Board's letter No. E(P&A)I-77 RT/46  dated 29.5.1984)

6.5 A Railway servant who has resigned or prematurely retired cannot be considered for re-employment in posts for creation of which ban orders are attracted.

(Ref: Board's letter No. E(G)68 EC 2/2  dated 30.4.1968)

6.6 A Railway servant, who has been granted re-employment should declare to the authority concerned the amount of gratuity/ SC to GPF or pension received by him in respect of his previous employment.

(Ref: Rule 404(1) of Estt. Code Vol. I/1985)

6.7 Group 'D' Railway servants should not be considered for re-employment in projects and construction units.

(Ref: Board's letter No. E(NG)66 CL/15  dated 20.1.1967)

6.8 A Railway servant re-employed within a year of his retirement on a post of the same medical category is exempted from medical examination. Railway servants considered for re-employment on posts falling in medical categories 'A' and 'B' should be re-examined medically before re-employment and should also be subject to vision test every year if considered necessary.

6.9 On re-employment in Railway service, retired Railway servants, their family members and dependent relations are entitled/ free of charge, to medical attendance and treatment facilities, as admissible to serving Railway servants, in accordance with the rules in force.

(Ref: Para 604 - Indian Rlys. Medical Manual/1981)

6.10 Railway servants, who are re-employed are eligible to draw the same number of privilege passes and PTOS,as they were enjoying at the time of their retirement irrespective of the fact whether their service on re-employment is continuous with service rendered before retirement or not. The class of Passes and PTOS in case of Group 'C' Railway servants who are re-employed will be determined on the basis of their Pay on which they are re-employed plus gross pension and/or pension equivalent of other forms of retirement benefits. Non- Railway Government servants and those of quasi-Government bodies on re-employment in Railways are eligible to the privilege Passes/PTOs on the scale as admissible to temporary Railway servants. The class or Passes/PTOs admissible to such persons re-employed in Group 'C' posts will be determined on the basis of their Pay on which they are re-employed plus gross pension and/or pension equivalent of other forms of retirement benefits.

(Ref: Items (xvii) and (xviii) of Schedule VI of Railway servants Pass Rules, 1986)

Fixation of Pay:

7.1 The Pay of Railway servants governed under the pension as also Contributory P.F. rules re-employed after superannuation shall be fixed as explained in the succeeding sub-paras. The provisions given there in will also apply to fixation of Pay of retired Central/ State Govt. employees, retired Defence personnel both in the case of pensioners as also those governed by contributory provident fund benefits, re-employed on Railways, personnel re-employed in regular work charged capacity and unless otherwise provided will also apply to personnel re-employed on contract basis. The provisions will not, however, apply to: -

a.     Personnel re-employed after resignation or removal or dismissal provided they have not received any retirement terminal benefits for the earlier service,

b.     Personnel paid from contingencies,

c.      Personnel on daily rated or casual or part-time employment,

d.     Personnel engaged as consultants on consolidated fees,

e.     Personnel whose Pay on re-employment is not chargeable to the Civil Estimates of the Govt.

7.2

a.     Re-employed pensioners shall be allowed to draw Pay only in the prescribed scales of Pay for the posts in which they are re-employed. No protection of the scales of Pay of the posts held by them prior to retirement shall be given.

b.      

                                                    i.            In all cases where the pension if fully ignored/ the initial Pay on re-employment shall be fixed at the minimum of the scale of Pay of the re-employed post.

                                                  ii.            In cases where the entire pension and pensionary benefits are not ignored for Pay fixation, the initial Pay on re-employment shall be fixed at the same stage as the last Pay drawn before retirement. If there is no such stage in the re-employed post, the Pay shall be fixed at the stage below that Pay. If the maximum of the Pay scale in which a pensioner is re-employed is less than the last Pay drawn by him before retirement, his initial Pay shall be fixed at the maximum of the scale of Pay of the re-employed post. Similarly, if the minimum of the scale of Pay in which a pensioner is re-employed, is more than the last Pay drawn by him before retirement his initial Pay shall be fixed at the minimum of the scale of Pay of the re-employed posts. However, in all these cases, non-ignorable part of the pension and pension equivalent of retirement benefits shall be reduced from the Pay so fixed.

c.      The re-employed pensioner will in addition to Pay as fixed under para (b) above, shall be permitted to draw separately any pension sanctioned to him and to retain any other form of retirement benefits.

d.     In the case of persons retiring before attaining the age of 55 years and who are re-employed, pension (including pension equivalent of gratuity and other forms of retirement benefits) shall be ignored for initial Pay fixation to the following extent:

                                                    i.            In the case of ex-servicemen who held posts below commissioned officer rank in the Defence Forces and in the case of civilians who held posts below Group 'A' posts at the time of their retirement, the entire pension and pension equivalent of retirement benefits shall be ignored.

                                                  ii.            In the case of service officers belonging to the Defence Forces and Civilian Pensioners who held Group 'A' posts at the time of their retirement, the first Rs. 500/- of the pension and pension equivalent of retirement benefits shall be ignored.

7.3 Once the initial Pay of re-employed pensioner has been fixed in the manner indicated above, he may be allowed to draw normal increments in the time-scale of the post to which he is appointed as if the Pay had been fixed at the minimum or the higher stage as the case may be (i.e. before an adjustment on account of pension and pension equivalent of other forms of retirement benefits is made) provided that the Pay and gross pension/pension equivalent of other retirement benefits taken together do not at any time exceed Rs.8000/-per month. This increased ceiling is effective from 01.01.1986.

7.4 Personnel retiring on Invalid or Compensation Pensions:

Persons who are re-employed after obtaining compensation or invalid pension will also be governed by these orders subject to the condition that if the re-employment is in qualifying service, they may either retain their pension, in which cases their former service will not count for future pension or cease to draw any part of their pension and count their previous service. Pension intermediately drawn need not be refunded. In case the pensioners elect to count their previous service for pension by forgoing their entire pension including death-cum-retirement gratuity, their Pay would be fixed by treating them as if they are not in receipt of any pension. The special provision contained in this letter (para 7.10) regarding grant of Contributory Provident Fund benefits during the period of re-employment and the grant, on termination of the period of re-employment, of the unutilised portion of the refused leave in respect of previous service shall not be extended to them.

7.5 Military Reservations:

Military reservations who continue to serve in the same civil post in which they were employed during reserve period, shall continue to draw the same rate of Pay which they were drawing on the date of transfer to military pension establishment in addition to pension provided the pension is not more than Rs. 50/- per month.

7.6 Emergency Commissioned Officers and Short Service Commissioned Officers:

Emergency Commissioned Officers and Short Service Commissioned Officers who joined pre-commissioned training or were commissioned after 10.01.1968 may on their appointment in Government service to unreserved vacancies, may be granted advance increments equal to the completed years of service rendered by them in Armed Forces on a basic Pay (inclusive of deferred Pay but excluding other emoluments) equal to or higher than the minimum of the scale attached to the civil post in which they are employed, The Pay so arrived at should not, however, exceed the basic Pay (including the deferred Pay but excluding other emoluments) last drawn by them in the Armed Forces.

7.7 Transfer:

On transfer to another post, Pay of the re-employed pensioner shall be fixed under the provisions of Fundamental Rules with reference to the Pay in the previous re-employment post (before adjustment). Adjustment from the Pay so fixed, on account of pension and pension equivalent of retirement benefits shall be continued to be made to the same extent as was being made earlier. This will, however, remain subject to the condition that the Pay plus pension and pension equivalent of gratuity and other forms of retirement benefits shall not exceed Rs. 8000/- per month at any time. (The increased ceiling of Rs. 8000/- is effective from 01.01.86)

7.8 Provisional Pay:

Where delays are likely to occur in determining the pension and other pensionary benefits, the re-employed officers, pending final fixation of Pay, might be paid their Pay on provisional basis for a maximum period of six months after taking into account the maximum pension and gratuity that might be admissible to them on the basis of last Pay drawn by them. The sanctioning authorities shall be responsible for ensuring that the provisional Pay authorised is not likely to exceed the correct Pay that may become admissible. For the purposes of calculating the pension equivalent of the gratuity, the Table as prescribed in the Central Civil Services (Commutation of Pension Rules, 1981) from time to time shall be followed. An undertaking for refunding any amount that might be overpaid as a result of provisional fixation of Pay shall be obtained from the re-employed pensioners.

7.9 Allowances:

The drawal of various allowances and other benefits based on Pay shall be regulated with reference to the Pay that is fixed on re-employment. Pay for these allowances and benefit will be the Pay fixed before deducting the non-ignorable part of the pension and the pension equivalent of the other retirement benefits.

7.10 Contributory Provident fund :

Re-employed officers might be permitted to contribute to the contributory provident fund, provided that where the term of re-employment is initially for a year or less but is later extended so as to exceed one year, the Government' s contribution with interest shall be credited only after the completion of one year's re-employment service. The Government contribution with interest shall be Payable for the entire period for which the re-employed officer is allowed to contribute to C.P. F, if such period exceeds one year.

8. Leave and Leave Salary:

In the case of persons re-employed after retirement, the provisions of relevant leave rules will apply.

9. Gratuity/ Death – cum - retirement gratuity:

Re-employed officers shall not be eligible for any gratuity/death-cum-retirement gratuity for the period of re-employment except in those cases covered by Rules 18 and 19 of the Central Civil Services (Pension) Rules1972, and corresponding Rules of the Defence Service regulations.

10. Retrenched employees:

In the case of ex-servicemen as well as civilian who are retrenched from service and are not granted pension and/or service gratuity, on their appointment to Government service they may be granted advance increment equal to the completed years of service rendered by them on a basic Pay equal to or higher than the minimum of the scale attached to the civil post in which they are employed. The Pay so arrived at, should not, however, exceed the basic Pay drawn by them in the Armed Forces.

11. Fixation of Pay of Ex -Combatant Clerk/ Storesmen:

1.     In partial modification of the provisions in paras 7.2 and 7.3 above, ex-combatant Clerks on their re-employment as Lower Division Clerks or Junior Clerks in the Civil posts and Ex-Storesmen in the Armed Forces on their re-employment as Storesmen in Civil posts shall have the option to get their Pay fixed as per provisions of paras 7.2 and 7.3 above in accordance with the procedure indicated in sub-para (2) below,

Explanation:

                                                    i.            The option once exercised is final. The re-employed pensioner should be asked to exercise the option within the period of three months from the date of his re-employment.

                                                  ii.            Ex-combatant Clerks and Storesmen referred to in this order will include reservists released at their own request or on compassionate or medical grounds,

2.     Service rendered as Combatant Clerks and Storesmen in Armed Forces shall be treated as equivalent to service as Lower Division Clerks/Junior Clerks and Storesmen respectively in Civil posts, irrespective of the Pay drawn in those posts in the Armed Forces. The initial Pay in such cases shall be fixed in the time scale of the re-employed posts at a stage equivalent to the stage that would have been reached by putting in the civil posts the number of completed years of service rendered in the posts in the Armed Forces. The Pay so fixed will not be restricted to the 'pre-retirement Pay'. The fixation of Pay in these cases shall be done by invoking the provisions of Fundamental Rules 27.

Explanation:

                                                    i.            For the purpose of calculation of completed years of service rendered in the Armed Forces the non-qualifying service in the Armed Forces will not be taken into account.

                                                  ii.            Pension as explained in para 14 below shall be deducted from the Pay fixed under this rule after ignoring Rs.15/- thereof and only the net Pay is Payable.

                                                iii.            If the resultant amount does not correspond to a stage in the scale applicable to the re-employed post, Pay may be fixed at the next lower stage and the difference allowed as personal Pay to be absorbed in future increases of Pay.

                                                iv.            Where the Pay in such cases, if fixed below the minimum of the Pay scale of the re-employed post, as a result of adjustment of amount of pension drawn by him from the Army in excess of Rs.15/- per month, increases in Pay may be allowed after each year of service at the rate of increment admissible as if the Pay has been fixed at the minimum till the minimum of the scale is reached. Thereafter, subsequent increments may be granted in the scale of the re-employed post in the usual manner.

3.     In the case of appointment of persons during released leave/ terminal leave, their Pay may be fixed at the minimum of the scale of Pay of the civil post of Lower Division Clerk/ Junior Clerk/ Storesmen and they will draw leave salary separately from the military authorities. Their Pay in accordance with the formula mentioned at (2) above will be fixed from the date of their final discharge from the Army,

4.     The power to fix the Pay under this order is delegated to the Administrative Ministries/ Departmentsof the Government of India. For this purpose the Comptroller and Auditor General of India will have the same powers as the Ministries of the Government of India. Orders fixing the Pay in such cases should be issued by invoking the provisions of Fundamental Rule 27.

12. Details to be called for from the Audit/Accounts Officers:

For the correct determination of Pay, competent authorities shall obtain the following information in respect of all officers viz. gazetted, non-gazetted and Group 'D' from the Accounts Officers who reported on the title to pension etc.

                            i.            Post held substantively on the date of retirement and substantive Pay in that post together with scale of Pay.

                          ii.            Other post, if any, held in an officiating capacity on the date of retirement and officiating Pay drawn in the post together with scale of Pay.

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