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Pension

Railway employee pension

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msrkrishna000009
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9 views3 pages

Pension

Railway employee pension

Uploaded by

msrkrishna000009
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PENSION RULES

1. Employees appointed before 01.01.2004 come under Old Pension Scheme


Rules.

2. Employees appointed on or after 01.01.2004 come under National Pension


Scheme (NPS) and are not eligible for monthly pension under old pension
scheme.

3. Pension is a monthly payment.

4. Pension is equal to 50% of basic pay last drawn by the employee at the time
of retirement.

5. For running staff ( LP & Guards) additional amount equal to 55% of basic
pay is added to the last pay drawn for calculation of pension.

6. For Railway Doctors additional amount equal to 20% of basic pay is added
to the last pay drawn for calculation of pension.

7. For sanction of pension employee should have put in minimum 10 years


qualifying service (QS).

8. On pension Dearness Relief (DR) is paid.

9. Service gratuity is paid in less than 10 years qualifying service cases. This is
one time payment and not monthly payment.

10. Service gratuity is equal to 50% of basic pay last drawn for each completed
six monthly periods of service.

Commutation of Pension:

1. Employee can commute up to 40% of pension and take lump-sum amount.

2. The lump-sum amount is calculated as under:-

Amount of pension commuted x 12 x Age factor as on next birth day of


retired employee.
3. Age factor for retirement on superannuation is 8.194.

4. Commuted portion of pension will be restored after 15 years from the date
of commutation.

5. For 15 years only Residual pension is paid. (ie basic pension minus
Commuted pension)

6. Dearness Relief (DR) is paid on Basic Pension.(not on residual pension)

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