Retirement Benefits applicable to Railway Employees

Retirement Benefits applicable to Railway Employees – An Overview of Provident Fund, Gratuity, Commutation of Pension, Leave Encashment, RELHS and more

1. What are Retirement Benefits applicable to Railway Employees?

Retirement Benefits are the benefits which an employee is eligible to get on Superannuation, Voluntary Retirement, Death and Resignation from Railway service. These can be briefly summarised as under:

(i) On Superannuation

Provident Fund (PF)
Retirement Gratuity
Commutation of Pension (Optional)
Group Insurance (GIS)
Leave Encashment
Composite Transfer Grant
Post Retirement Complimentary Passes
Railway Employees Liberalised Health Scheme (RELHS)
Gold Plated Silver Medal

(ii) On Voluntary Retirement

Provident Fund (PF)
Retirement Gratuity
Commutation of Pension (Optional) at the rate of relevant factor applicable on next birthday
Group Insurance (GIS)
Leave Encashment
Composite Transfer Grant
Post Retirement Complimentary Passes
Railway Employees Liberalised Health Scheme (RELHS)
Gold Plated Silver Medal

(iii) On Resignation

Provident Fund (PF)
Group Insurance (GIS)
Leave Encashment – 50% of balance LAP (maximum up to 150 days)

(iv) On Death

Provident Fund (PF)
Death Gratuity
Group Insurance (GIS)
DLI (Deposit Linked Insurance Scheme)
Leave Encashment
Composite Transfer Grant
Widow Passes
Railway Employees Liberalised Health Scheme (RELHS)

(v) On Removal/ Dismissal

Provident Fund
Group Insurance
Compassionate Allowance/Grant (If sanctioned – to the extent of a maximum 2/3rd of Pension/Gratuity) as decided by disciplinary authority.

Note:

(i) Commutation of pension in case of compulsory Retirement shall be subject to medical examination.

(ii) Post Retirement Complimentary Passes shall not be issued to those Railway Servants who are dismissed from service or removed from service on or after 26.10.2005.

(iii) Post Retirement Complimentary Passes shall not be issued to those Railway Servants on whom penalty of cent percent cut in Pension and Gratuity has been imposed on or after 26.10.2005.

(iv) Post Retirement Complimentary Passes shall be issued to those Railway Servants who are dismissed or removed from service on or after 26.10.05 but are granted Compassionate Allowance in terms of Rule 65 of RS (Pension) Rules 1993.

These passes shall be issued from the date of Granting of Compassionate Allowance.

2. What other facilities are available to Retired Railway Employees?

In addition to Pension/Family Pension and PostRetirementComplimentaryPasses, the following facilities are also available:

Holiday Homes
Rest House (for Officers only)

3. What Documents are required to be filled for claiming Retirement Benefits?

Documents to be filled for claiming Retirement Benefits are:

Duly filled ‘A’ Booklet from the Retiring Employee.
‘No Dues certificate’ of Laptop from IT Department.
No Dues certificate from S&T Department regarding submission of Mobile Phone/ CUG Sim.

4. What are the different formulas for calculation of Retirement Benefits?

Formulas for calculation are:

(i) Qualifying Service

20 years.

(ii) Pension:

(a) Linkage of full pension with 33 years qualifying services shall be dispensed with. Once a Railway Servant has rendered the minimum qualifying service of 20 years, pension shall be 50% of the last emoluments or average emolument received during the last 10 months whichever is beneficial to him.

(b) After completion of 10 years service, 50% of last Pay is admissible as Pension.

(iii) Death Cum Retirement Gratuity (DCRG):

DCRG will be given on the basis of completed qualifying service upto 33 years. For this ¼ of wage for each completed 06 monthly periods, up to maximum 33 years (66 six monthly periods) service subject to ceiling of Rs.10,00,000/-. In case of death, the amount will be enhanced as shown in subsequent pages.

(iv) Family Pension:

30% of last Basic Pay + DR (Dearness Relief) subject to minimum of Rs.3500/- + DR.
In case of death, 50% of last pay drawn or twice the normal family pension + DR whichever is less for ten years.

(v) Commutation

40% of pension (optional).

(vi)Leave Encashment

Leave will be encashed upto maximum of 300 LAP. In case, LAP is less than 300 days, then LHAP will be encashed up to that limit by which LAP is lesser than 300 days.

5. What are the documentary requirements for ensuring timely payment of settlement dues? List out.

The check list of documents is:

Personal File and Service Record duly completed in all respects
Verification of Leave Records for last three years
‘No Dues Certificate’ duly vetted by finance
Service History (Qualifying Service) duly vetted by finance
D&AR/Vigilance clearance for final settlement dues issued within one month prior to retirement
Pension Booklet duly filled
10 month’s average Pay or Last Pay Drawn (calculated by Bill Section)
National Electronic Fund Transfer (NEFT) Form with IFSC code of the Bank
Bank Pass Book (photocopy)
Photographs 9 + 2 booklet (individual) and one joint Photograph with spouse, size 2” x 3”
4 Photographs of spouse and each dependent (passport size) for issuance of Medical-cum-Pass Identity Card
Death Certificate (in case of death).
Birth Certificate of spouse and children who are eligible for Family Pension.

6. Clearances to be obtained?

Every Government servant who is going to retire should ensure that ‘No Dues Certificate’ regarding Railway Quarter Rent, Electric Charge, Lawn Charge, Laptop and Telephone Bill including CUG should be obtained in time. The DCRG may be withheld due to non-clearance of dues mentioned above.

7. Period within which Settlement Dues are to be paid to Railway Servants?

Railway Board’s letter No. F(E)III/2005/PN-1/2 dated 25.01.2005 emphasizes that in case of superannuation Settlement Dues of Railway Servants should be paid on the date of retirement itself and to the family of those who die while in service as early as possible in order that the retiring person and the family of the deceased Railway Servant are not put to hardships.