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Self Explanatory Settlement

Self explanatory Note from Vijayawada division personnel Department in Indian railway

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0% found this document useful (0 votes)
22 views13 pages

Self Explanatory Settlement

Self explanatory Note from Vijayawada division personnel Department in Indian railway

Uploaded by

RohitUikey
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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सेवा िनविृ त लाभ

RETIREMENT BENEFITS

दि ण म य रेलवे
SOUTH CENTRAL RAILWAY
िवजयवाड़ा मंडल
Vijayawada DIVISION
कािमक शाखा
PERSONNEL DEPARTMENT
DISCLAIMER

Any person entering a railway service on or after the 16th November, 1957 to 31.12. 2003.is
eligible pension.

The under mentioned Settlement dues are applicable to those appointed prior to 01.01.2004.
[All those appointed after 01.01.2004 are covered under New Pension Scheme].

NR(Superannuation): - Attain 60 years of age

ONR: - 1. VR 2. Death 3. MD/VR 4. CR 5. Technical Resignation 6. Resignation 7. Removed


8. Missing

Kinds of Pension: - 1. SUPERANNUATION PENSION 2. RETIRING PENSION


3. COMPENSATION PENSION 4. INVALID PENSION 5. COMPULSORY RETIREMENT
PENSION

Sr.DPO/O/BZA
KINDS OF PENSION

SUPERANNUATION PENSION- Superannuation pension is granted to an employee who


retires on attaining the age of superannuation. i.e., 60 years.

RETIRING PENSION- Retiring pension is granted to an employee who is permitted to


retire after 55 years of age or 30 years of service or after 20 years of qualifying service under
voluntary retirement scheme.

COMPENSATION PENSION- Compensation pension is granted to an employee who is


discharged from service owing to abolition of post unless appointed to another post.

INVALID PENSION-Invalid pension is granted to an employee when he opts for retirement


due to medical unfitness or medical de categorisation.

COMPULSORY RETIREMENT PENSION- It is granted to Railway servants who are


compulsorily retired from Railway service as a penalty. However Competent Authority at his
discretion can pass orders either to grant full pension or 2/3rd pension & gratuity or both.
However, in case of Gazetted Officers wherever pension/Gratuity is reduced UPSC should be
consulted.

PROVISIONAL PENSION- A Railway servant who has retired from Railway service on
attaining the age of superannuation or otherwise and against whom any departmental or
judicial proceedings are instituted or where departmental proceedings are already under
process, a provisional pension shall be sanctioned. The provisional pension is calculated on
the basis of qualifying service up to the date of retirement, or if he was under suspension on
the date of retirement, up to the date immediately preceding the date on which he was placed
under suspension. It is payable up to the date on which final orders are passed by the
Competent Authority after conclusion of Departmental / Judicial proceedings. The gratuity
will be withheld till the finalization of Departmental / Judicial proceedings and issue of final
orders. The provisional pension paid shall be adjusted in the final retirement benefits.

COMPASSIONATE ALLOWANCE- Whenever Railway employee is removed or


dismissed from service shall forfeit his pension and gratuity. However, the Disciplinary
Authority concerned who has imposed the penalty of removal / dismissal may at his
discretion sanction the compassionate allowance not exceeding 2/3 rd of pension / gratuity or
both which would have been admissible to him had he retired on compensation pension.

TO SANCTION PENSION/FAMILY PENSION THE FOLLOWING DOCUMENTS


ARE REQUIRED

1. QUALIFYING SERVICE
2. PENSION BOOK LETS
3. FORM NO 10 & 11
4. AADHAR CARD
5. BANK DETAILS/UNDER TAKING FORM
6. PHOTOS (SINGLE/FAMILY AND FAMILY MEMBERS)
7. FAMILY DECLEARATION (WHILE IN SERV ICE)
Sr.DPO/O/BZA
8. NAMINATION FORM
9. LAST PAY SLIP

Normal/Voluntary Retirement Death


Provident fund (Own contribution) Provident fund (Own contribution) plus
plus interest as per Rule No.74(4) of interest
Railway Services (Pension) Rules-
1993
Monthly pension Monthly Family Pension
Commutation of pension Deposit Linked Insurance subject to
conditions
Retirement gratuity as per Rule Death Gratuity
No.70 of Railway Services (Pension)
Rules-1993
CGE Group Insurance Scheme Group Insurance (Full insurance value +
(Saving Fund value with interest) saving fund value with Interest)
Encashment of Leave In terms of Encashment of Leave
Rule 519(A)ds of IREC Vol.I
Composite Transfer grant Composite Transfer Grant

10. PAN CARD/NPS CASE REQUIRED ORIGINAL PRAN CARD

The following are the benefits given to the staff on retirement or to the family in case of
death of the employees.

Sr.DPO/O/BZA
Settlement Pass Settlement Pass
Post-retirement Passes Widow Passes
Medical facilities under RELHS, Medical facilities under RELHS, 1997
1997
Fixed medical allowance Fixed medical allowance
Retention of Railway Quarters Retention of Railway Quarters
(Up to specified period only) (Up to specified period only)
Benefit of staying in Holiday Appointment on Compassionate
Homes/Officers’ Rest Houses Grounds

HOW PENSION IS CALCULATED?


Pension shall be calculated at 50% of the last Pay (pay in the Pay Band + Grade Pay) drawn by
the employee at the time of his/her the minimum pension granted to a Railway Servant is
Rs.9000/- per month and maximum pension is Rs. 1,25,000/- as per 7th PC.

Formula for Non-Running Staff:


Basic Pension= Pay in Pay band + Grade Pay/2 +Dearness Relief
Example: Basic Pay Rs.41100/2=20550+DA original pension
Formula for Running Staff:
In case of Running Staff, pay element shall also include 55% of the pay for reckoning
emoluments. Hence Basic Pension:
= (Pay in Pay Band + Grade Pay) +(55% of Pay in the Pay Band + Grade Pay)/2 + Dearness
Relief
Example: Basic Pay Rs.70000+38500=108500/2=54250+DA original pension
Dearness Relief is paid basing on the basic pension to the employee which varies from time to
time. This payment of dearness relief is based on the amount of pension sanctioned originally
without reducing the commuted value.

Average emoluments shall be determined with reference to the emoluments drawn by a Railway
servant during last ten months of his service. or LAST BASIC PAY WHICH EVER IS MORE

WHO ARE ELIGIBLE FOR PENSION?


Permanent employees who retire on superannuation/ voluntary retirement/invalidation or are
retired having a qualifying service of not less than 10 years
Temporary employees who retire on superannuation or invalidation after a qualifying service of
not less than 10 years or who retire voluntarily after a qualifying service of 20 years or more.

Sr.DPO/O/BZA
COMMUTATION OF PENSION
Employees who are retiring on superannuation / voluntary retirement can commute up to 40% of
the pension, without medical examination. This is a lumpsum payment. In case of medical
unfitness / compulsory retirement as a measure of penalty and for those who have not applied for
commutation within one year from the date of their retirement, this would be payable after
medical examination. The application for commutation should be made within one year from the
date of issue of retirement orders.

How is it calculated?
The lump-sum commutation value will be arrived at by multiplying the commuted portion of
pension by a factor relevant to age next birthday x 12.

Formula
40% of Pension x 12 x commuted value as on age as on next birthday (i.e., on 61 years age)
A separate table is available for selecting commuted value as per birthday age.

Example (Rng or Non Rng)


If the employee’s basic monthly PAY is Rs 70000/- and due for retirement on 31.05.2022 after
attaining the age of 60 years The employee can commute up to 40% of his/her pension as under:
40% of PENSION Rs. 35000x12 x 8.194 14000x 12 x 8.194 = Rs. 13,76,592

RESIDUAL PENSION: -After computing the Basic Pension as stated supra, the
Portion of pension commuted shall be excluded and the amount so arrived shall be ‘Residual
Pension’ which shall be paid as monthly amount to the pensioner till it is restored. However,
Sr.DPO/O/BZA
Dearness Relief is paid basing on the Basic Pension but not on residuary pension. In other words,
this payment of DR is based on the amount of pension sanctioned originally without reducing the
commuted value.

Restoration of commuted value of pension


The pensioner is entitled to apply to the pension disbursing authority for restoration of the
commuted value of pension with effect from the date of completion of 15 years from the actual
date when commutation was affected.
NOTE: Commutation has no effect on Family Pension. In case of demise of the employee before
completion of 15 years, the family gets full family pension as per entitlement without any
deduction towards commuted amount in the employee’s pension.
(R.B. Lr.No.SCR. F(E) III / 87 / PN / 1 / 7 dated 26.3.1987)

The additional quantum of pension/family pension available to the old pensioners/family


pensioners shall be increased as follows:

Age of Pensioners/Family pensioner Additional quantum of


pension
From 80 years to less than 85 years 20% of revised basic Pension/
Family pension
From 85 years to less than 90 years 30% of revised basic Pension/
Family pension
From 90 years to less than 95 years 40% of revised basic Pension/
Family pension
From 95 years to less than 100 years 50% of revised basic Pension/
Family pension
100 years or more 100% of revised basic Pension/
Family pension

FAMILY PENSION
It 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 retiral spouse is also eligible for family pension.

Calculation of Family Pension


The amount of family pension is calculated @ 30% of pay (Pay in the Pay Band + Grade Pay)
subject to a minimum of Rs. 9000/- plus dearness relief admissible from time to time. Qualifying
service is irrelevant for sanction of family pension at normal rates.

The period for which enhanced family pension payable to the family of a railway servant who
dies in service, is extended to ten years without any upper age limit. In case of death of Railway
servant after retirement, enhanced Family Pension shall be paid for seven years or for a period up
to the date on which the retired deceased Railway servant would have attained the age of 67 years
had he survived whichever is less.

Sr.DPO/O/BZA
RETIREMENT GRATUITY

It is a lump sum payment granted to a Railway servant or his/her nominee on his/her retirement or
medical invalidation.
How is it calculated?
Railway employee who has completed 5 years of qualifying service is entitled for retirement
gratuity. The gratuity depends upon the qualifying service and the last pay and grade pay drawn
by the employee. It is calculated at the rate of half of the emoluments for each completed six
monthly period of qualifying service subject to a maximum of sixteen and half times the
emoluments and the total amount should not exceed Rs. 20,00,000/- (Rupees Twenty lakhs). The
ceiling on gratuity will increase by 25% whenever the D.A rises by 50% of the basic pay.

Formula for Non-Running Staff


Gratuity = (Pay in the Pay Band + Grade Pay + DA) x Qualifying Service/2.

EXAMPLE 1
If an employee is retiring with 33 years qualifying service and his Basic Pay is Rs. 50500/- in pay
band Rs. 9,300-34,800 with GP Rs4,200(Level 6), current DA @ 38% (as on 01.07.2022) @
Rs.19190
Retirement Gratuity Rs. (50500+19190) x 33/2 = Rs.11,49,885
Formula for Running Staff
In case of Running Staff, 55% of Basic Pay will be treated as Pay rating the Running Allowance.
Gratuity = Pay* + DA** x Qualifying Service /2
*Pay = Pay + 55% of Pay
** DA = (Pay + 30% of Pay) x DA as on the date of retirement
EXAMPLE 2
If an employee is retiring with 21.5 years qualifying service and his Basic Pay is Rs. 64,100/- in
pay band Rs. 9,300-34,800+4200GP (Level 6), current DA @ 38% (as on 01.07.2022) @
RS=.31665
Retirement Gratuity Rs. (99355+31665) x 21.5/2 = Rs.14,08,465= In case of Death Gratuity: If
a Railway servant dies while in service, the amount of death gratuity shall be paid to the family in
the manner indicated in the Table below:
S.No. Length of qualifying Rate of gratuity
service
(i) Less than one year 2 times of emoluments
(ii) One year or more but less 6 times of emoluments
than 5 years
(iii) 5 years or more but less 12 times of emoluments
than 11 years
(iV) 11 years or more but less 20 times of emoluments
than 20 years
(v) 20 years or more Half of emoluments for every completed
six monthly period of qualifying service
subject to maximum of 33 times
emoluments provided that the amount of
death gratuity shall in no case exceed
Rs. 20,00,000/- (With increase by 25%

Sr.DPO/O/BZA
whenever the DA rises by 50% of the
Basic pay).

RECOVERIES FROM GRATUITY

(I) Government dues if any, could be recovered from the retirement gratuity of an
employee retiring and in the case of a deceased employee from death gratuity even
without obtaining his consent. (Authority Rule 15 of RS(Pension) Rules 1993).

(II) The entire gratuity will be withheld in case the employee does not vacate the railway
accommodation provided to him and also in cases where any department or judicial
proceedings are pending.

POST RETIREMENT BENEFITS

CENTRAL GOVERNMENT EMPLOYEES’ INSURANCE SCHEME 1980 [CGEIS 1980]:


Rate of Subscription & Corresponding Insurance cover under CGEIS 1980.

Group of 01.01.1982 to 31.12.89 From 01.01.1990


employees Initial Recovery Insurance Initial Recovery Insurance
Recovery, from next cover Recovery, from next cover
(on joining year (on joining year
on or after on or after
2 January) 2 January)
(1) (2) (3) (4) (5) (6) (7)
Group ‘A’ Rs.24 Rs.80 Rs.80000 Rs.40 Rs.120 Rs.120000
Group ‘B’ Rs.12 Rs.40 Rs.40000 Rs.20 Rs.60 Rs.60000
Group ‘C’ Rs.6 Rs.20 Rs.20000 Rs.10 Rs.30 Rs.30000
Group ‘D’ Rs.3 Rs.10 Rs.10000 Rs.5 Rs.15 Rs.15000

CGIES ’80 being good social security was introduced w.e.f. 01.01.1982 on Railways vide letter
dated 21.11.1980.

This is intended to provide for employees, the twin benefits.


(1) an insurance cover to help the family in the event of death while in service and
(2) payment of lump sum payment to augment resources on retirement, at a low cost, and on
a wholly contributory and self-financing basis.

Family will be paid: -


(i) The Insurance Cover amount; and
(ii) An amount equal to the portion of subscription credited to the ‘Savings Fund’
together with the accumulated interest thereon.

In the event of cessation, other than death: - In the event of cessation, other than death, a
substantial part of subscription together with compound interest would be paid back to the
employee when they cease to be Railway employees, in accordance with the “Tables of
Benefits for the savings fund for the relevant period” as circulated from time to time.

Sr.DPO/O/BZA
LEAVE ENCASHMENT
Leave salary is a lump sum onetime payment of the un availed leave at credit at the time of
retirement or death. This is limited to the maximum of 300 days of LAP.

In case any short fall of 300 days LAP, LHAP from his/her credit will be taken for the purpose
of
leave encashment to the extent of shortfall of number of days of LAP.

Formula for LAP encashment:

(Pay in Pay Band + GP + DA) X No. of days of LAP subject to a maximum of 300 days
30

For LHAP encashment:

(Pay in Pay Band + GP + DA) X No. of days of LHAP to the extent of shortfall of LAP
30 x 2 subject to maximum of 300 days of LAP & LHAP

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 (CTG) to settle down at
places other than the last station on duty located at a distance of more than 20 Kms. Application
for CTG should be submitted within one year from the date of retirement/death. Power to
condone delay beyond one year and up to two years wrests with AGM. In situations where the
personal effects were moved beyond two years, Railways Boards sanction is necessary. CTG
will not be paid as long the Railway accommodation, if any, provided to the retired staff is
vacated.

CTG on retirement: - Composite Transfer Grant shall be admissible on the same lines as on
transfer in
respect of staff on retirement to settle down at places other than the last station(s) of their duty
located.

CTG in case of death while in service: - The members of family in the event of death of an
employee
shall, besides free pass, be also eligible for the transfer allowance/ Composite Transfer Grant

Rates of CTG admissible:

Sr.DPO/O/BZA
(a) The Composite Transfer Grant shall be paid at the rate of 80% of the last month's basic pay
in case of transfer involving a change of station located at a distance of or more than 20 kms
from each other.

(b) ln cases of transfer to stations which are at a distance of less than 20 kms from the old station
and of transfer within the same city, one third of the composite transfer grant will be admissible,
provided a change of residence is actually involved.

PROVIDENT FUND &DLI: -


This is paid to the employee at the time of retirement from his/her own contribution together with
interest hereon. The employee can exercise nomination to avoid delay in settlement in the event
of his/ her unfortunate death. He/she can nominate one or more persons for receiving the PF
amount. In case, he/she nominates more than one person, percentage of shares to be paid to each
should also be indicated. In case of death while in service, the family shall be paid DLI as
detailed below:

On the death of a subscriber to the State Railway Provident Fund (S.R.P.F.) the person entitled to
receive the amount standing to the credit of the subscriber shall be paid by the Accounts Officer
an additional amount equal to the average balance in the account during the three years
immediately preceding the death of such subscriber, subject to the conditions.

Special Pass
One set of free passes may be issued to retiring Railway employee or in the event of demise to the
person or persons entitled to receive payment of settlement dues when called for the purpose of
receiving such payment. The Class of Pass to which he/she was entitled on privilege account
before retirement/death is applicable in this case.

Settlement Pass
Railway employee, in the event of retirement or widow/widower in the event of death of the
employee, may be issued Passes for self and family members/dependent relatives for the
transportation of personal effects to the place where he/she intends to settle after retirement/death.
Application for settlement passes should be submitted within one year from the date of
retirement/death of the employee.

Post Retirement Complimentary Pass

Category No. admissible in one year

Group-`A’ & `B’: With Railway Service of 20 years or more 3 sets - w.e.f. 01.01.2006 (*)
Group-`C’: With Railway Service of 20 years or more 2 sets - w.e.f. 01.01.2006 (*)
Group-`D’: With Railway Service of 20 years or more 1 set - w.e.f. 01.01.2006 (*)

PRC passes can be drawn at the place of their choice ---. Item [ii] of schedule IV

PRC passes…During the year of retirement. In the year in which the Railway Servant retires
from service, he is entitled to that number of single journey PRC passes which represents the
Sr.DPO/O/BZA
difference between the number of privileges passes he is normally entitled to in a calendar year
while in service and the number actually availed by him, provided the total number of PRC
passes availed after the date of retirement does not exceed the number of PRC passes for which
he is entitled in a calendar year [Item [v] of schedule IV]

Disallowance of PRC pass on unauthorized retention of Railway Quarters: One set of PRC
pass shall be disallowed for every month of unauthorized retention of railway quarters by retired
officers/staff. --- SC 331/99

WIDOW PASS: Half the number of PRC Passes that the Railway Servant was either receiving at
the time of his demise after retirement or in case of death while in service would be notionally
eligible to receive by reckoning the date of death as the date of retirement…The class of pass
would be same as is admissible to the Rly employee on retirement or what would be admissible
notionally if the date of death is reckoned as the date of retirement.
Widow Pass- Drawing from the office of their choice: - widows may be permitted to draw their
WC Passes from the Offices located in or near their place of residence ….SC85/97

Passes to widowers: -The facility of passes available to the widow of a male Railway employee
shall be available to the widower of a female Railway employee.” SC116/98

RAILWAY EMPLOYEES LIBERALISED HEALTH SCHEME (RELHS) -97

Joining of RELHS-97 has been made MANDATORY for all retiring Railway Employees w.e.f.,
16.03.2009 in terms of Board’s instructions circulated under Locarno. 43/09.

In case the retiring officer / staff is unwilling to join the scheme, he/she will have to submit
his/her unwillingness in writing with a clear understanding that no further chance shall be given
to join the scheme in future.

The rates of contribution to join RELHS shall be last month’s basic pay drawn or the subscription
rate indicated at different levels (as per 7th CPC) enumerated in the table below whichever is
lower.

S Levels in the pay matrix as per 7th CPC Subscription rate to join
No RELHS (in Rs.)
1. Level: 1 to 5 30,000
2. Level: 6 54,000
3. Level: 7 to 11 78,000
4. Level: 12 and above 1,20,000

FIXED MEDICAL ALLOWANCE

At present fixed medical allowance @ Rs. 1000/- p.m. is granted to the Railway Pensioner/family
pensioner subject to

(i) residing in areas beyond 2.5 Kms of Railway Hospital/Health Unit for meeting
expenditure on their day-to-day medical expenses that do not require hospitalisation.

Sr.DPO/O/BZA
(ii) The pensioner/ family pensioner is not availing the facility of OPD [except in cases of
chronic diseases].

Railway Quarters

Permissible periods for retention

RETIREMENT: -An employee on NR/ VR/ CR may be permitted to retain the non-earmarked
Railway accommodation for a period of 4 months on payment of normal rent/flat rate of license
fee/rent and the next 4 months on educational or sickness account on payment of special license
fee, i.e., double the normal rent or double the flat rate of license fee/rent. MC 49; SC 4/2001 &
SC 119/01

The cases of retirement on medical invalidation are also to be treated at par with NR

RESIGNATION/DISMISSAL/REMOVAL: An employee who resigns from service or is


dismissed or removed from service may be permitted to retain the railway quarter for a period of
one month only on payment of normal rent/flat rate of licence fee. [Ref: No. E[G]85 QR1-9 dated
15-1-90] … Para 10.28 of Revised MC 49 [RBE 35/2007

DEATH: In case of death up to 12 months on normal rent, further 12 months on normal rent
provided that the deceased or his /her dependants do not own a house at the place of posting.

MISSING CASES: - In super session of SC 41/97, decided that the family of missing Railway
employee may be permitted retention of Railway quarters for a period of one year on payment of
normal rent from the date of lodging of FIR (the period from the date from which the employee is
missing till the date of filing FIR would automatically get regularized) with the police by the
family of missing Railway employee. On the certification of the police authorities that the
missing employee is not traceable and the whereabouts of the person could not be known, the
family of the missing employee may be permitted further retention for a period of one year on
payment of normal rent……SC 141/02.

CHECK LIST OF DOCUMENTS RECEIVED DURING SETTLEMENT FUNCTION

1) Service certificate
2) Pension payment order
3) ID Cum Medical (RELHS) card
4) Pass authorisation letter
5) Gold plated silver medal (Only in case of Normal retirements and Vol Retirement)

* * *

Thank you
Sr.DPO/O/BZA
ध यवाद

Sr.DPO/O/BZA

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