Self Explanatory Settlement
Self Explanatory Settlement
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].
Sr.DPO/O/BZA
KINDS OF PENSION
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.
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
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
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
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.
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.
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.
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.
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).
(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.
CGIES ’80 being good social security was introduced w.e.f. 01.01.1982 on Railways vide letter
dated 21.11.1980.
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.
(Pay in Pay Band + GP + DA) X No. of days of LAP subject to a maximum of 300 days
30
(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
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
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.
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.
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
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
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
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
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.
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