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Master Circular No. 60 Master Circular on Pension and Retirement/Death Gratuity |
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In continuation of Master Circular No. 3, Master Circular No. 4 is enclosed with this letter, which brings out instructions issued from time to time relating to Pension and Retirement/Death Gratuity.
2. The circular consists of three parts. Part I deals with the extant provisions regarding eligibility of pension, amount of pension and various classes of pension etc. Part II relates to provisions pertaining to the payment of Death/Retirement gratuity persons to whom gratuity becomes payable and the provision for nomination in favour of a person for receiving the amount of gratuity in case of a death of a railway servant while in service or death after retirement without receiving the gratuity. Part III gives brief details of orders issued from time to time on the subjects of pension and gratuity.
3. Instructions referred to in the circular are both old and those current on the subject. For dealing with old cases, the instructions in force at the relevant time be referred to.
If any circular current on the subject has been omitted, the same should nevertheless be treated as valid to the extent operative.
PART I
PENSION
1. Eligibility to Pension and amount of pension:
1.1 Pension is admissible to a permanent railway servant with a minimum of 10 years qualifying service on his quitting service because of either abolition of post or medical invalidation or retirement on completion of 30 years service or superannuation. However, with effect from 1.1.1986, temporary railway servants retiring on superannuation or on being declared permanently incapacitated for further railway service by the appropriate medical authority with 10 years qualifying service shall be eligible for superannuation/invalid pension, retirement gratuity and family pension at the same scale as admissible to permanent employee. Temporary employees on seeking voluntary retirement after completion of 20 years service shall continue to be eligible for pension, retirement gratuity and family pension as per the Scheme of Voluntary retirement.
1.2 Railway servants retiring before completing 33 years qualifying service but after completing 10 years qualifying service, the amount of pension shall be calculated at 50% of the average emoluments and proportionate to the amount of pension for 33 years qualifying service.
[Letter No. PC-IV/Imp/PN/1 dated 15.04.1987 (RBE 90/1987)]
1.3 In the case of a railway servant retiring before completion of 10 years qualifying service, he shall be eligible for service gratuity at the rate of half a month's emoluments for every completed six monthly period of service. Those retiring with 10 years qualifying service or more, pension shall be calculated on the basis of the actual qualifying service and 50% of average emoluments Subject to a minimum of Rs. 375/- and a maximum of Rs. 4500/- per month. ##{W.e.f 1.1.1996, pension shall be subject to a minimum of Rs. 1275/- and a maximum up to 50% of the highest pay in the Government i.e. Rs. 30,000/- p.m.}
[Letter No. F(E)III/97/PN1/22 dated 5.11.1997 (RBE 142/1997)
and 23.10.1998 (RBE 242/1998)]
## Added vide Railway Board's letter No. F(E)III/2000/Master Circular/Revision dated 10.3.2000 (RBE 41/2000).
[Letter No. F(E)50/RT 1/6 dated 16.11.1957
& PC-IV/Imp/PN/1 dated 15.04.1987 (RBE 90/1987)]
1.4 In calculating the length of qualifying service, fraction of a year equal to three months and above shall be treated as completed one half year and reckoned as qualifying service.
(Letter No. F(E)III 79 PN1/10 dated 25.08.1963)
1.5 The amount of pension finally determined shall be expressed in whole rupee and where the Pension contains a fraction of a rupee, it shall be rounded off to the next higher rupee.
(Letter No. F(P)66 PN1/33 dated 07.04.1966)
2. Classes of Pension:
The various classes of pension are as under :-
2.1 Superannuation pension
Superannuation pension shall be granted to a railway servant who has retired on his attaining the age of compulsory retirement (##{Superannuation i.e. 60 years at present.})(Superannuation i.e. 58 years at present.)
[Letter No. E(P&A)I-98/RT-6 dated 14.5.1998 (RBE 103/1998)]
## Replaced vide Railway Board's letter No. F(E)III/2000/Master Circular/Revision dated 10.3.2000 (RBE 41/2000).
2.2 Retirement on the last day of the month in which Superannuation falls
With effect from 1.11.1973 Railway servants in Group B, C & D services or posts and from 1.5.1974, Railway servants in Group A services or posts shall retire from service with effect from the afternoon of the last day of the month in which their date of retirement accordance to Rule 2046-RII falls without prejudice to clauses (h) (i) (k) and (l) of that Rule. (Corresponding Rules in 1987 edition of R-II Rules 1802 and 1804).
(Letter No. PC-III/73/RT/4 dates 18.12.1973, 20.5.1974 and 2.8.1974)
2.3 Retiring Pension
Retiring Pension is granted to a railway servant who retires or is retired in advance of the age of compulsory retirement (on Superannuation) on completion of 30 years qualifying service as provided in Para 620 of MRPR and Rule 1803 of the Indian Railway Establishment Code Vol. II or on completion of 20 years qualifying service as per the scheme of voluntary retirement issued under Board's letter no. E(P&A)I 77/RT-46 dated 9.11.1977 or under Rule 1802 of the Indian Railway Establishment Code Vol. II.
2.4 Pension on absorption in or under a Corporate Company or Body
Railway servant who has been permitted to be absorbed under service or post in or under a Corporate or Company wholly or substantially owned or controlled by Government or in or under a body controlled or financed by the Government. (For details and authority, see Chapter I of Master Circular on Pension)
2.5 Invalid Pension
Invalid pension may be granted if a railway servant retires from service on account of any bodily or mental infirmity, which permanently incapacitates him for service.
2.6 Compensation Pension
If a railway servant is selected for discharge owing to the abolition of his permanent post, he shall, unless he is appointed to another post the conditions of which are deemed by the authority competent to discharge him to be atleast equal to those of his own have the option
•a. of taking compensation pension to which he may be entitled for the service he had rendered; or
•b. of accepting another appointment on such pay as may be offered and continue to count his previous service for pension.
(Letter No. F(E)50/RT 1/6 dated 16.11.1957 and Paras 601 to 607 of MRPR)
2.7 Compulsory Retirement pension
A railway servant compulsorily retired from service as a penalty may be granted by the authority competent to impose such penalty, pension or gratuity or both at a rate not less than 2/3rd and not more than full compensation pension or gratuity both admissible to him on the date of retirement. Pension granted in such cases shall not be less than Rs. 375/-.
(Para 312 of MRPR
and Letter No. PC-IV/Imp/PN/1 dated 15.04.1987 (RBE 90/1987))
2.8 Compassionate Allowance
Railway servant who is dismissed or removed from service shall forfeit his pension and gratuity.
Provided that the authority competent to dismiss or remove him from service may if the case is deserving of special consideration sanction a Compassionate allowance not exceeding 2/3rd of pension or gratuity or both which would have been admissible to him if he had retired on compensation pension. The Compassionate allowance sanctioned as such shall not be less than Rs. 375/- per month.
(Para 309 of MRPR
and Letter No. PC-IV/Imp/PN/1 dated 15.04.1987 (RBE 90/1987))
•3. Retirement on completion of 30 years qualifying service:
At any time after the railway servant has completed 30 years qualifying service.
•a. He may retire from service by giving three months notice; or
•b. He may be required by the appointing authority by giving him three months notice to retire in public interest and in the case of such retirement, the railway servant shall be entitled to retiring pension provided that this benefit shall not be admissible to a scientific or technical export who is
• i. On assignment under the Indian Technical and Economic Co-operation (ITEC) Programme of the Ministry of External Affairs and other Aid Programmes;
• ii. Posted abroad under foreign based offices of the Ministries/ Departments; and
• iii. On a specific contract assignment of a foreign government
Unless after having been transferred to India he has resumed charge of the post in India and served for a period of not less than one year.
(Para 620 of MRPR and Letter No. F(E)III 85 PN 1/21 dated 19.09.1985)
4. Retirement on completion of 20 years qualifying service:
At any time after the railway servant has completed 20 years qualifying service, he may, by giving notice of less than 3 months in writing to the appointing authority retire from service.
[Letters No. E(P&A)I 77/RT-46 dated 09.11.1977, 29.05.1904 and 02.08.1985 (RBE 219/1985)
Letter No. E(P&A)I 85/FE 4-7 dated 07.11.1986 (RBE 216/1986)]
PART-II
RETIREMENT/DEATH GRATUITY
•1. With effect from 1.1.1986, in the case of a railway servant who has completed five years qualifying service, retirement gratuity on retirement shall be paid equal to 1/4th of his emoluments for each completed six monthly period of qualifying service subject to a maximum of 161/2 times the emoluments provided that the amount of retirement gratuity payable shall in no case exceed one lake of rupees. There will also be no ceiling on reckonable emoluments for calculating the gratuity.
1.2 In the event of death in harness, the death gratuity shall be admissible at the following rates.
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Length of service |
Rate of gratuity |
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(i) |
Less than one year |
2 Times of emolument. |
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(ii) |
One year or more but less than 5 years. |
6 Times of emolument. |
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(iii) |
5 years or more but less than 20 years |
12 Times of emoluments |
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(iv) |
20 years or more |
Half of the emoluments for every completed six Monthly period of qualifying service subject to a maximum of 33 times/emoluments provided that the amount of death gratuity shall in no case |
[Letter No. PC-IV/Imp/PN/1 dated 15.4.1987 (RBE 90/1987)]
•2. Persons to whom gratuity is payable
•a. Gratuity shall be paid to the person or persons on whom right to receive the gratuity is conferred by means of nomination.
•b. If there is no nomination or if nomination does not subsist the gratuity shall be paid in the manner indicated below.
• i. If there are one or more surviving members of the family as given under items (i) to (iv) of the term family given under Para 2-3 past, to all such members in equal shares.
• ii. If there are no such surviving members of the family as in item (i) above but if there are one or more members as given in items (v), (vi), (vii), (viii), (ix), (x) and (x) to all such members in equal shares.
2.1 If a railway servant dies after retirement without receiving the gratuity, the same shall be disbursed to the family as indicated above.
2.2 The right of the female member of the family or that of the brother of a railway servant who dies while in service or after retirement to receive the gratuity shall not be effected if the family member marries or remarries or the brother attains the age of 18 years, after the death of the railway servant before receiving her or his share of the gratuity.
Where gratuity is granted to a minor member of the family of the deceased railway servant, it shall be payable to the guardian on behalf of the minor.
(Letters No. F(E)50/RT 1/6 dated 16.11.1957,
F(P)64 PN1/42 dated 22.6.1966,
F(P)58 PN1/5 dated 2.2.1960 and para 702 of MRPR)
2.3 The term 'family' in relation to DCRG is as under: -
• iii. Wife or wives (including judicially separated wife or wives)
• iv. Husband (including judicially separated husband in the case of a female railway servant)
• v. Sons including step sons and adopted sons
• vi. Unmarried daughters including step daughter and adopted daughters
• vii. Widowed daughters including stepdaughter and adopted daughters
• viii. Father (Including adoptive parents in the case of individuals whose personal law permits adoption)
• ix. Mother (Including adoptive parents in the case of individuals whose personal law permits adoption)
• x. Brother below the age of 18 years including stepbrothers
• xi. Unmarried sisters and widowed sisters
• xii. Married daughters and
• xiii. Children of pre deceased son
[Letters No. F(E)50/RT 1/6 dated 16.11.1957,
F(P)59 PN 1/11 dated 30.8.1960,
F(P)PN 1/11 dated 21.3.1961,
F(P)64 PN1/42 dated 22.6.1966]
3. The position as to whom the share of a minor in the capacity of minor natural/legal guardian would be payable is as under.
• Where no valid nomination subsists:
•a. When share is payable to a minor son or minor unmarried daughter, it should be paid to the surviving parents except in the case where the surviving parent happens to be a Muslim lady. When there is no surviving parent or surviving parent is a Muslim lady, payment will have to be made to a person producing the guardianship certificate.
•b. When the share is payable to widowed minor daughter or daughters, production of guardianship certificate would be necessary.
•c. If in a rare case the wife herself happens to be minor death/retirement gratuity payable to her shall be paid to the person producing the guardianship certificate.
•d. When the death/retirement gratuity becomes payable to a minor brother or minor unmarried sister, the payment should be made to the father or in his absence to mother of the beneficiary except in a case where the mother happens to be a Muslim lady. In this case, too, if there is no surviving parent or surviving parent happens to be Muslim lady, the payment will have to be made to the person producing the guardianship certificate. If any share is payable to a widow miner sister, the production of guardianship certified would be necessary.
i. Where valid nomination subsists:
• . Where the nomination is in respect of one or more of the members of the family, the position stated at (i) would apply.
•a. Where there is no family, the nomination in favour of an illegitimate child or married sister would also be valid. The position would therefore be as follows.
• i. If the nominee is an illegitimate child, the share will be payable to the mother and in her absence production of guardianship certificate would be necessary.
• ii. If the share is payable to married minor girl the share will be payable to the husband.
(Letter No. F(P)58 PN1/5 dated 2.2.1960)
4. Nomination:
4.1 A railway servant, shall, on his initial confirmation in a service or post, make a nomination conferring on one or more persons the right to receive the retirement gratuity/ death gratuity.
Provided that if at the time of making the nomination,
• . has a family, the nomination shall not be in favour of any person or persons other than the members of his family; or
• i. has no family, the nomination may be made in favour of a person or persons or a body of individuals whether incorporated or not.
4.2 If a railway servant nominates more than one person he shall specify in the nomination the amount of at share payable to each of the nominee in such manner as to cover the entire amount of gratuity.
4.3 A railway servant may provide in the nomination
• ii. That in respect of any specified nominee who predeceases the railway servant or who dies after the death of the railway servant but before receiving the payment of the gratuity, the right conferred on that nominee shall pass to such other persons as may be specified in the nomination.
Provided that if at the time of making the nomination the railway servant has a family consisting of more than one member, the person so specified shall not be a person other than a member of his family.
Provided further that where a railway servant has only one member in his family and a nomination has been made in his favour, it is open to the railway servant to nominate alternate nominee or nominees in favour of any person or a body of individuals whether incorporated or not
• iii. That the nomination shall become invalid in the event of the happening of the contingency provided therein.
4.4 The nomination made by a railway servant who has no family at the time of making it or the nomination made by a railway servant where he has only one member in his family shall become invalid in the event of the railway servant subsequently acquiring a family or an additional member in his family as the case may be.
4.5 A railway servant may cancel a nomination at any time by sending a notice in writing to the Head of Office and send a fresh nomination in accordance with the rules,
4.6 Immediately on the death of a nominee in respect of whom no special provision has been made or on the occurrence of any event by reason of which the nomination becomes invalid, the railway servant shall send a notice in writing cancelling the nomination together with a fresh nomination
4.7 Every nomination made including notice of cancellation shall be sent to the Head of Office, who immediately on receipt of such nomination countersign it indicating the date of receipt and keep under his custody. Head of Office may authorise his subordinate Gazetted railway officer to countersign nomination forms of non gazette railway servant. Suitable entry regarding receipt of nomination shall also be made in the service book of the railway servant concerned.
4.8 Every nomination made and every notice of cancellation given by railway servant shall, to the extent that it is valid take effect from the date on which it is received.
Nominations for death/retirement gratuity are important documents on the basis of which the claims of the beneficiaries have to be established and settled. To obviate the possibility of such losses in future, nomination papers should, after countersignature, be kept in a separate confidential file which should be lodged for safe keeping with the Head of the Office or other responsible officer nominated by him for this purpose and a clear note made in the service book of the officer as to that nomination and related notices have been received so that there should be no difficulty in locating the documents when the occasion for making a reference to the arises.
[Letters No. F(E)50/RT 1/6 dated 16.11.1957,
F(E)64 PN 1/23 dated 12.5.1964,
and F(E)III 75 PN 1/2 dated 30.7.1975]
5. Payment of death/ retirement gratuity to the extent of Rs. 5000/- later raised to Rs. 10,000) Rs. 10.000/- (or first Rs. 10,000/- where the amount payable exceeds Rs. 10,000/-) in favour of a minor may be made to his/her guardian in the absence of a natural guardian, without production
of formal guardianship certificate subject to the production of indemnity bond with suitable sureties to the satisfaction of the sanctioning authority.
For details and the format of Indemnity Bond, see the following orders.
[Letter No. F(P)65 PN 1/1 dated 21.4.1965,
F(P)66 PN 1/27 dated 3.11 1966
and F(E)III/88/PN 1/42 dated 20.10.1989 (RBE 262/1989)]
6. Payment of Death/Retirement Gratuity on succession certificate:
Where a railway servant dies while in service or after retirement without receiving the amount of gratuity and leaves behind no family and has also not made any Nomination or the nomination made by him/her does not subsists, the amount of death/ retirement gratuity payable in respect of such a railway servant shall not lapse to the Government but shall be payable to the person in whose favour succession certificate has been granted by the Court of Law.
[Letter No. F(E)III/90 PN 1/36 dated 20.12.1991(RBE 215/1991)]
PART III (A)
PENSION
•1. Various orders on matters concerning pension issued from time to time.
•2. On introduction of pension scheme on the Railways vide Board's letter No. F(E)50/RT 1/6 dated 16.11.1957, Pension Rules as in force at that time were also circulated to the Railways. As per Pension Rules, pension and/or gratuity was admissible in the following cases.
•a. Retirement on superannuation
•b. Retirement on Medical invalidation
•c. Retirement on completion of 30 years qualifying service
•d. Abolition of post
2.1 Pension was admissible at the scale of 30/80 of average emoluments subject to a maximum of Rs. 8100/- per annum. Those who had completed 5 years service and were not eligible for pension were entitled to service gratuity at the rates prescribed in the orders. Other important features of the Pension Rules were detailed in the said orders.
(Letter No. F(E)50/RT 1/6 dated 16.11.1957)
2.2 Over payment of arrears of pension, DCRG and family pension could be recovered from the pensioner or his family. Declaration shall be signed by the Pensioner/ family agreeing to refund the excess payment.
(Letter No. F(P)58 CSR 1/6 dated 23.11.1958)
•3. Consequent upon further liberalisation in the Pension scheme as recommended by the Second Pay Commission, the amount of superannuation, Invalid and Compensation Pension and Gratuity in respect of railway servants who retired on or after 1.1.1959 was fixed as under: -
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Gratuity |
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Ranging from 1/2 month's emoluments for each six monthly period of qualifying service to 81/8 months emoluments for 19 completed six monthly periods of qualifying service. |
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Pension |
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At the rate of 10/80th of average emoluments for 10 years qualifying service to 30/80th of average emoluments for 30 years and above qualifying service subject to a maximum of Rs. 8100/- per annum |
4. (Letter No. PC 60/RB-3/7 dated 1.11.1960)
•5. A pensioner who desires to commute a portion of his pension is required to furnish two copies of passport six photographs alongwith his application for commutation.
(Letter No. F(P)59 PN 1/14 dated 28.1.1961)
•6. The requirement for obtaining declaration for refund of the excess payment of pension/ gratuity and family pension was dispensed with. Instead, the pensioner is required to be served with a notice to refund the excess payment failing which the excess payment is recovered from the pension, DCRG or the family pension in one or more instalments.
(Letter No. F(P)62 CSR 1/1 dated 1.6.1962)
•7. Based on the accepted recommendations of the Second Pay Commission Draft Chapter I of the Manual of Railway Pension Rules was circulated to the Railways, indicating inter alia that pension is admissible to a permanent railway servant with 10 years qualifying service. Those with less than 10 years qualifying service are entitled to ordinary gratuity at the scale prescribed in the circular. Temporary railway servants are entitled to terminal gratuity.
6.1 A permanent railway servant who died while in service or had completed 5 years qualifying service was entitled to DCRG in addition to ordinary gratuity. The quantum of ordinary gratuity, pension/DCRG and the terminal gratuity admissible is given in the following orders. While the pension admissible shall be a maximum of Rs. 675/- per month, the amount of DCRG payable shall not exceed Rs. 24000/-. Minimum pension fixed at Rs. 25/- per month.
[Letter No. F(E)62 PN 1/19 dated 12.12.1962,
F(P)64 PN 1/1 dated 02.1.1964
and F(P)69 PN 1/10 dated 26.6.1969]
•8. The amount of pension finally determined should be expressed in whole rupees and where the pension contains a fraction of rupee it shall be rounded off to the next higher rupee.
Clarification issued that orders for rounding off the pension to the next higher rupee are applicable to all classes of pension including Extraordinary Pension, and the Compassionate Allowance, which is in the nature of pension.
[Letter No. F(P)66 PN 1/33 dated 7.4.1966,
14.04.1967
& 21.12.1967]
•9. With effect from 1.3.1970, the minimum superannuation, retirement, Invalid and Compensation pension including adhoc increase was fixed at Rs. 40/- per month. However these orders are not applicable in respect of pension payable to a railway servant on absorption in Public Sector Undertaking a or Autonomous Bodies etc.
[Nos. F(E)III/70 PN 1/9 dated 02.05.1970
and F(E)III/76 PM 1/19 dated 19.10.1976]
•10. Scope of orders fixing minimum pension of Rs. 40/- per month clarified.
(Letter No. F(E)III/70 PN 1/9 dated 3.7.1971)
•11. Benefit of commutation allowed on the difference between the original pension and the enhanced pension fixed as a result of a portion of Dearness Allowance treated as Dearness Pay.
(Letter No. F(E)III 70 PN 1/28 dated 21.10.1971)
•12. Pension including Compassionate Allowance shall not be reduced below the minimum permissible pension of Rs. 40/- per month.
(Letter No. F(E)III/70 PN 1/16 dated 01.04.1972
and F(E)III/75 PN 1/19 dated 27.03.1976)
•13. With effect from 01.01.1973: -
Gratuity shall be payable at the rate of 161/2 months emoluments as against 15 months emoluments;
Maximum qualifying service for determining pension raised from 60 completed six monthly periods to 66 six monthly periods and the Invalid pension shall not be less than the amount of the family pension payable to the family of the deceased railway servant.
(Letter No. F(E)III/74 PN 1/3 dated 2.1.1974)
•14. The recommendation of the Third Pay Commission for grant of relief on pension to Class II, III and IV Railway servants retiring on and after 01.01.1973 was accepted.
(Letter No. PC-III/73/PN/3 dated 5.4.1974)
•15. Relief on pension was also granted to Pre 01.01.1973 pensioners.
(Letter No. F(E)III 73 PN 1/17 dated 15.5.1974)
•16. Relief on pension was granted to Class I Officers.
(Letter No. PC-III 73 PN/3 dated 18.7.1974)
•17. Where the railway servant opted for the Railway Services (Revised Pay) Rules 1973 from a date subsequent to 1.1.1973 dearness pay, dearness allowance and the interim relief as in force on 31.12.1972 and drawn till the date the railway servant opted for the revised scale at was treated as emoluments for pensionary purposes.
(Letter No. PC-III 73/PN/3 dated 9.9.1974)
•18. Clarification was issued that relief on pension is admissible on Compassionate Allowance.
(Letter No. F(E)III 73 PN 1/17 dated 2.2.1976)
•19. In the case of railway pensioner drawing another pension from the State Government, the relief on Railway pension shall be paid on the amount of pension as sanctioned by the Railway. The railway will have no objection if the State Government also pays the relief on the pension sanctioned by the State Government.
(Letter No. F(E)III 74 PN1/16 dated 27.02.1976)
•20. Rule 2534/R-II and Para 315 of Manual of Railway Pension Rules permitting reduction in pension because of unsatisfactory service record modified.
(Letter No. F(E)III PN1/21 dated 10.2.1978)
•21. The payment of provisional pension to the retiring railway servants against whom departmental or judicial proceedings had been instituted or continued after retirement is mandatory.
(Letter No. F(E)III 78 PN 1/11 dated 17.5.1978)
•22. Order relating to relief and adhoc relief on pension to the retiring railway servants were consolidated and the relief was to be granted as a percentage of pay linked with every increase in the cost of living. No relief shall be granted when a pensioner is employed in Public Sector Undertakings, Autonomous Bodies, and Banks or paid from Local Funds etc.
(Letter No. PC-III 76 PN 1/3 dated 25.5.1978)
•23. In respect of railway servants retiring on and after 31.3.1979 slab system was introduced under the Liberalisation of Pension Formula. The maximum pension alongwith relief was raised to Rs. 1500/- per month as against the maximum pension of Rs. 1000/-.
(Letter No. F(E)III 79 PN 1/4 dated 1.6.1979)
•24. Rules 2534, 2809. 2815, 2303, 2308/A and Form 30-D in Appendix XIII of the Indian Railway Establishment Code Vol. II authorising the competent authority to reduce pensionary benefits on grounds of unsatisfactory service record deleted.
(Letter No. F(E)III 80 PN 1/19 dated 18.11.1980)
•25. Railway servants on retirement from service on attaining the age of superannuation or on being declared to be permanently incapacitated for further service by the appropriate authority after he has rendered temporary service of not less than 20 years allowed pension, gratuity and family pension. Hitherto, pension was admissible only to a permanent railway servant. These orders were made applicable to railway servants who were in service on 31.12.1980.
(Letter No. F(E)III 78 PN 1/3 dated 21.12.1981)
•26. The upper ceiling limit of DCRG payable was raised from Rs. 30,000/- to Rs. 36,000/-. This was payable to those railway servants who became eligible for gratuity on or after 31.1.1982.
(Letter No. F(E)III 82 PN 1/3 dated 28.4.1982)
•27. Additional dearness allowance treated as pay for pensionary benefits subject to a minimum of Rs. 42/- and maximum of Rs. 363/- per month depending upon the pay of the railway servant. This benefit was applicable to those who retired on or after 31.1.1982.
(Letter No. PC-III/82/DP/3 dated 30.4.1982)
•28. Minimum amount of pension/ family pension including relief thereon was stepped up to Rs. 150/- and Rs. 140/- respectively. This benefit was allowed in respect of pension falling due on 1.4.1982 or thereafter.
(Letter No. F(E)III 82 PN 1/4 dated 3.6.1983)
•29. The amount of pension and family pension including relief thereon was further stepped up to Rs. 160/- and Rs.150/- per month respectively for pensions falling due on 1.4.1983 and thereafter.
(Letter No. F(E)III 82 PN 1/4 dated 7.8.1982)
•30. In calculating the length of qualifying service, a fraction of a year equal to three months and above be treated as completed one half year and reckoned as qualifying service for determining the amount of pension.
(Letter No. F(E)III 79 PN 1/10 dated 25.8.1983)
•31. Notice of voluntary retirement under Rule 2046 (i) (FR 56 (m) -R-11 can be withdrawn by a railway servant before his intended date of retirement.
(Letter No. E(P&A)I-83/RT-11 dated 3.11.1983)
•32. Arrears of pension on the death of a pensioner are payable to his nominee. Railway servant at the time of retirement may submit nomination. Pensioners were also given six months time to file their nominations.
(Letter No. F(E)III 83 PN 1/25 dated 21.11.1983, 3.9.1984 and 26.2.1986)
•33. As a result of Supreme Court judgement benefit of Liberalised Pension Formula was extended to all pensioners who were in receipt of superannuation, retiring Compensation and Invalid Pension as Compassionate Allowance on 01.04.1979. The said formula provided for computation of average emoluments on the basis of emoluments drawn during the last 10 months (b) determination of pension with reference to 33 years qualifying service and the maximum pension restricted to Rs.1500/- per month as well as application of slab system in computing the pension from the average emoluments.
(Letters No. F(E)III PN 1/8 dated 29.11.1983, 8.5.1984 and 6.3.1986)
•34. In the case of running staff retiring on and after 01.08.1981, 55% of pay element allowed to be counted as emoluments for retirement purposes.
(Letter No. E(P&A)II-82/RS-7 dated 5.6.1984)
•35. In respect of railway servants retiring on and after 31.3.1985, entire additional dearness allowance and adhoc dearness allowance (linked to average index level 568) treated as dearness pay for retirement benefits. The ceiling on the amount of pension was also lifted.
[Letter No. PC-III/85/DP/1 dated 17.5.1985 (RBE 144/1985),
27.6.1985 (RBE 188/1985),
14.10.1985 (RBE 271/1985)
and 19.2.1986 (RBE 36/1986)]
•36. The scheme of voluntary retirement under Para 620 of Manual of Pension Rules i.e. after 30 years qualifying service shall not be applicable to those who are on assignment to ITDC, posted abroad in foreign-based posts of the Government and those who are on specified assignment to foreign Governments.
(Letter No. F(E)III 85 PN 1/21 dated 19.9.1985)
•37. The ceiling limit of pension plus relief in the case of a pensioner who retired before 31.03.1979 shall be the same as in the case of a pensioner who retired after 31.03.1979.
(Letter No. F(E)III 85 PN 1/32 dated 21.1.1986)
•38. With effect from 01.01.1986, the minimum pension (superannuation/ retiring/ invalid/ Compensation) or family pension fixed at Rs. 375/- per month.
[ No. F(E)III 87 PN 1/6 dated 9.3.1987 (RBE 326/1987)]
•39. Pension shall be calculated at 50% of average emoluments in all cases subject to a minimum of Rs. 375/- and a maximum of Rs. 4500/- per month w.e.f. 01.01.1986
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