GOVERNMENT PENSION

Definition: A person with 20+ years of qualifying service can voluntarily retire.

Notice Period:3 months' notice for permanent Railway servants and one month's notice for temporary Railway servants.

Waiver: A competent authority can waive the notice period with Accounts concurrence.

Introduction Date: The pension scheme was introduced on 1.4.57.

Applicability: Liberalized pension rules apply to all Railway Servants appointed on or after 16.11.57.

Method: Pension is calculated at 50% of the last basic pay or average emoluments (last 10 months), whichever is more beneficial.

Limits: Subject to a maximum of 50% of the highest basic pay and a minimum of Rs.9,000/- per month.

Running Staff: For running staff, the basic pay is enhanced by 55%.

Definition: Total service minus non-qualifying service, if any.

Condition: To be reckoned for pension, the service should be permanent and substantive. Temporary and officiating service without break followed by confirmation in the same or another post shall count in full as qualifying service.

The entire period of training of Group - C and D employees who are required to undergo initial training before taking charge of the post shall count as qualifying service.

In the case of casual labourers absorbed after attaining temporary status, their service from the date of temporary status to the date of absorption will count to the extent of 50% as qualifying service. In the case of substitutes their service after completion of 4 months will qualify for pension.

Qualifying service is worked out in blocks of six monthly periods and any fraction of 3 months and above is treated as a six monthly period. Maximum qualifying service for pension is limited to 33 years and a minimum of 10 years of qualifying service is necessary to earn monthly pension.

Average emolument means the Basic Pay drawn by the employee during the last 10 months immediately preceding the date of quitting service. During the period if the employee was on LHAP, EXL or suspension, the period should be ignored and an equal earlier period in which the employee has availed full salary is included for working out average emoluments.

• When an employee retires on a day other than the last day of the month exact 10 months from the date of quitting should be taken for calculating average emoluments.
• When an employee is on leave during the last 10 months and earned an increment in that period, though not drawn it shall count for average emoluments provided it had become due during the first 180 days of leave.
• In the case of erroneous reversion the pay fixed on re-promotion, even on proforma basis shall count for calculation of average emoluments.

The payable amount is 1/4th of the emoluments for each completed six monthly period of qualifying service.

Subject to a maximum of 16 ½ times of the emoluments. The total amount shall not exceed Rs.20 lakhs.

It is calculated on the pay last drawn at the time of retirement and D.A. admissible there on. A minimum of 5 years of qualifying service is necessary to allow the benefit. In the case of running staff the pay is enhanced by 55% of the basic pay as pay element representing running allowance.

Railway Servants retiring with less than 10 years of qualifying service are not entitled to pension. A lump sum payment called Service Gratuity is granted if the employee has completed a minimum of 6 months of service.

It is paid at the rate of half a month's emolument (Basic Pay + DA) for each completed 6 monthly period of service. For running staff, the basic Pay is enhanced by 55%.

The maximum limit for all kinds of gratuity is Rs.20 Lakhs. With effect from 2-9-08, the benefit of adding qualifying service for pension computation is withdrawn.

A lump sum payment at retirement or death for LAP + LHAP at credit up to a maximum of 300 days (LAP + LHAP). For running staff, basic pay is enhanced by 30%.

Rules for encashment of LHAP: Not eligible if having 300 days of LAP, but can encash LHAP up to (300-LAP) days if LAP is less than 300 days. Shortfall in LAP commutation of LHAP is not permissible. Effective from 1-9-08.

Encashment of LHAP formula: {(Half Pay + DA) / 30} × LHAP (300 - LAP)

Payable to the family of a railway servant who dies in service. Duration: 10 years from the date of death without any upper age limit. In case of death of a pensioner, old rule will apply.

Double of family pension or 50% of the Basic Pay last drawn whichever is less.

It should be further ensured that the payment in no case fall less than the original pension of the employee. In the case of an employee entitled for compensation under WCA it will be worked out @ 1.5 times of the family pension.

1. To the widow or widower till their lifetime or remarriage whichever is earlier.
2. Then to the wards in the order of their birth up to the age of 25 years for sons and up to the date of marriage or 25 years of age for daughters whichever is earlier.
3. If a son or daughter is invalid, it is paid in their turn first and then shifted to all other eligible wards in their order of birth.
4. Then it is reverted back to the invalid son or daughter till their lifetime. A medical certificate from the Railway Doctor should be produced for this purpose.

Where there is more than one legally wedded wife the family pension is paid in equal shares. Family pension to a minor child is paid through a guardian.

In terms of Board's letter No.2003/H/28/1/RELHS dated 12.10.2009, joining RELHS is mandatory for all retiring Railway employees. The retiring officers / staff unwilling to join this scheme should clearly submit his / her unwillingness in writing in the declaration proforma.

Retiring / retired Railway Servant, who has put in a minimum of 20 years of Railway Service is eligible for enrolling himself as a beneficiary in this Scheme. 20 years service is not required for death / medically de-categorized cases. A medical card is issued for this purpose.

Ministry of Health vide letter No. 11011/11/2016/CGHS (P) / EHS dated 09th January, 2017 has revised the rates of monthly contribution for availing the CGHS facility. The Pensioner also has to make contribution to avail medical facility of CGHS. Pensioner have an option to get their CGHS contribution on an annual basis (twelve months) or by making contribution for ten years for getting a pensioner CGHS card with life time validity. The similar scheme for retired railway employees is "Retired Employees Liberalized Health Scheme" (RELHS).