RETIREMENT BENEFITS FOR RAILWAY EMPLOYEES IN GENERAL
KNOW YOUR RETIREMENT BENEFITS
All the Settlement dues mentioned in this post are applicable to those
appointed prior to 01.01.2004. [All those appointed after 01.01.2004 are covered
under New Pension Scheme].
Personal profile to be obtained from the retiring person.
PPO No. :
Tel: (Res.) :
Blood Group :
Family Details Name DoB
(a) Self :
(b) Wife :
(c) Son :
(d) U/m Daughter :
PAN No. :
Bank Account No. :
Name of the Bank :
Name of the Branch :
RELHS Registration No. :
Railway Hospital and Station
1.1 The age prescribed for retirement on superannuation is 60 years for all Government
1.2 Retirement is effective from the afternoon of the last day of the month in which age
of superannuation is attained.
1.3 An employee whose date of birth is the 1st of the month shall retire on the afternoon
of the last day of the preceding month.
1.4 The date of retirement on superannuation will be deemed as a working day.
1.5 In case of premature retirement/Voluntary retirement, the day of retirement will be
treated as a non-working day.
1.6 Entire gratuity will be withheld for non-vacation of quarters and during pendency of
departmental or judicial proceedings.
1.7 Life certificate should be furnished to the pension disbursing authority by the
pensioner/family pensioner in the month of November every year.
1.8 An amount equal to three months basic pay or ` 15,000/- whichever is less, is
payable as immediate relief (Funeral Advance) to the family of the deceased
employee. This amount will be recoverable from the death gratuity payable (SCR SC
1.9 Pension will be calculated and paid including the day of death of pensioner/family
WHAT ACCRUES IN THESE EVENTS?
Normal/Voluntary Retirement Death
Provident fund (Own contribution) Provident fund (Own contribution)
Monthly pension Monthly Family Pension
Commutation of pension Deposit Linked Insurance
Retirement gratuity Death Gratuity
CGE Group Insurance Scheme
(Saving Fund value with interest)
Group Insurance (Full insurance value +
saving fund value with Interest)
Encashment of Leave Encashment of Leave
Composite Transfer grant Composite Transfer Grant
Settlement Pass Settlement Pass.
Post-retirement Passes Widow Passes
Medical facilities under RELHS, 1997 Medical facilities under RELHS, 1997
Retention of Railway Quarters
(up to specified period only)
Retention of Railway Quarters
(up to specified period only)
Benefit of staying in Holiday Homes/Officers’
Appointment on Compassionate Grounds
2.0 ACTION TO BE TAKEN WHILE IN SERVICE
2.1 Modes of leaving service
2.1.1 Normal Retirement: On attaining the age of superannuation (at 60 years).
2.1.2 Voluntary Retirement by the employee.
2.1.3 Removal or compulsory retirement as a result of DAR action.
2.1.4 Death or Invalidation on medical grounds while in service.
2.1.5 In all these cases some amount become payable (varying from case to
case), which are known as Settlement dues.
While in service, every Railway employee must execute nominations in the
prescribed forms indicating the names of nominees to whom various final
settlement dues like DCRG, PF, CGIS etc. are to be paid in the event of
death etc. of the employee. It is also to be ensured that copies of the
nomination executed are available in the service records and also in
2.3 Planning for retirement
Apart from normal retirement on superannuation, an employee a railway
employee can retire from service voluntarily after rendering 20 years of
qualifying service by giving notice of not less than three months in writing
to Appointing Authority (Authority: Rule 67 of Railway Services (Pension)
3.0 ACTION TO BE TAKEN PRIOR TO RETIREMENT
3.1 Mode of Pension payment
After the employee decides about the place of stay after retirement, he /
she should also decide the mode of receipt of pension. Pension can be
received through nationalized banks or Post offices. Employee has to
specifically furnish the Pension account.
A retiring employee has to submit 5 passport size joint photographs of
himself/herself and that of the spouse for pension and one stamp-size
photo to be submitted for issuing photo identity Card. Five individual
photographs of the employee should be submitted for commutation forms
and for service certificate. One set of individual photographs of all eligible
family members including unemployed sons aged 21 years should be
submitted for medical identity card. Similarly, two sets of individual
photographs of self and eligible family members for the purpose of
Identity Card for Post-Retirement Complimentary passes should also be
3.3 Permanent Residential Address
Employee has to furnish the details of permanent residential address
where he/she intends to settle after retirement for purpose of
communication of any information, in future.
3.4 Family details
Employee has to furnish details of family members along with date of birth
and identification marks in the form given at Annexure-III of this booklet.
Apart from the aforesaid, following self- checks will enable early payment
of retirement dues.
3.5 Whether the PF account is complete. If employee has been transferred on
more than one occasion, the details of deductions from all units must
have been sent to the unit from where he/she is finally retiring.
3.6 Whether leave account is updated with all credits and debits.
3.7 Whether periods of break in service, if any, have been regularized.
3.8 Whether Service Register is complete in all respects.
3.9 Whether nomination has been executed for PF, GIS and Gratuity.
3.10 Whether the nomination is current and doesn’t need any change.
3.11 Whether Govt. accommodation is vacated in time.
3.12 Whether any DAR case is pending.
3.13 Whether Metal Pass (in case of officers)/Duty Card Pass issued by the
administration are surrendered.
3.14 Whether any period of suspension remains to be regularized.
3.15 Payment of all dues including interest to the railway viz. loans and
advances availed, etc.
4.0 RETIREMENT BENEFITS
This is a monthly payment made to the Railway employees consequent
upon their retirement with a qualifying service of not less than ten years.
The amount of pension depends upon the qualifying service rendered by
the employee and the last basic pay & Grade pay received.
A full bench of Supreme Court has declared in their historical judgment
that PENSION is to live from want in one’s fall of life with decency, 20
independence and self respect and at a standard equivalent at the pre-
retirement level. Pension is not a bounty payable on the sweet will and
pleasure of the Government. Right to superannuation including its amount
is a valuable right vesting in a government servant.
Further, different Central Pay Commissions have declared that Pension is
statutory, inalienable, legally enforceable right of retired employees and it
has been earned by the sweat of their brow.
4.2 Types of Pension
4.2.1 Superannuation Pension
It is granted to such of those employees who retire on attaining the age of
superannuation fixed by the Government i.e., 60 years.
4.2.2 Retiring Pension
An employee who retires or retired prior to his/her attaining the age of
superannuation shall be granted retiring pension. The pension will be
sanctioned in full on putting in a qualifying service of 20 years and above.
4.2.3 Invalid Pension
Railway Servants who retire from service on account of any physical or
mental infirmity which permanently incapacitates him/her to continue in
service will be sanctioned invalid pension. For sanctioning it, the
employee has to submit a medical certificate from a duly constituted
4.2.4 Compensation Pension
It is granted when a railway servant is discharged from his duties on
account of abolition of his permanent post, unless he is appointed to
another post which is equal to his existing post. The employee has the
option of accepting such an alternative post offered to him and continue
in service duly counting his past service for pension.
4.2.5 Compulsory Retirement Pension
Employees who are undergoing penalty and are retired on compulsory
measure as a penalty can be granted compulsory retirement pension. This
pension has to be authorized by the competent authority who is
empowered to impose the penalty of compulsory retirement.
4.2.6 Compassionate Allowance
It is sanctioned to a Railway servant who is dismissed or removed from
service subject to a maximum of two-thirds of the Superannuation
Pension or Gratuity or both. The employees who are dismissed or
removed are not entitled for normal pension and gratuity.
5.0 QUALIFYING SERVICE
5.1 It means service rendered by the employee while on duty or otherwise,
which shall be taken into account for the purpose of pension and gratuity.
The maximum qualifying service for reckoning pension/gratuity is 20
5.2 The following will constitute qualifying service:
Duty and periods treated as ‘Duty’.
Pensionable Service rendered under state/central Govt./ without any
interruption prior to appointment to Railways.
All kinds of leave with pay.
Period of deputation to other Central/State Government or Public Sector
Undertakings. In the case of PSUs, only if Foreign Service Contribution is
paid, such service can be counted.
Extraordinary leave taken on medical grounds.
Military service rendered before employment in Railways subject to
conditions stipulated in this regard.
50% of the casual labour service rendered after attaining temporary status
(to be restricted from 1.1.1961 in the case of open line casual labour and
from 1.1.1981 in the case of project casual labour).
Substitute service – on completion of 3 months in case of teachers and 4
months in other cases provided that such service is followed by absorption in
regular service without any break.
5.3 The following will not qualify for pension:
Extraordinary leave taken other than on medical grounds
Service rendered before attaining the age of 18 years Period of
Suspension, if not regularised.
Dies – non.
Period of foreign service where Foreign Service Contribution is not paid.
5.4 Rounding off of Qualifying Service
Less than 3 months- Ignored
More than 3 months but less than 9 months- ½ year
More than 9 months – One year.
6.0 HOW PENSION IS CALCULATED?
6.1 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 retirement or
50% of the average emoluments, whichever is more. The minimum
pension granted to a Railway Servant is ` 3500/- per month.
Formula for Non-Running Staff:
Basic Pension= Pay in Payband + Grade Pay+Dearness Relief
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) + Dearness Relief
6.2 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
7.0 WHO ARE ELIGIBLE FOR PENSION?
7.1 Permanent employees who retire on superannuation/ voluntary
retirement/invalidation or are retired having a qualifying service of not
less than 10 years
7.2 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.
8.0 COMMUTATION OF PENSION
8.1 Employees who are retiring on superannuation / voluntary retirement can
commute upto 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
8.2 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.
40% of Pension x 12 x commuted value as on age as on next birthday (i.e.
on 61 years age)
If the employee’s basic monthly pension is `3500/- and due for retirement
on 31.12.2011 after attaining the age of 60 years The employee can
commute up to 40% of his/her pension as under:
40% of ` 3500 x12 x 8.194 = 1400 x 12 x 8.194 = ` 1,37,659/-
Age next Commutation value Age next Commutation value Age next Commutation value
birthday expressed as No. of birthday expressed as No. of birthday expressed as No. of
year’s purchase year’s purchase year’s purchase
20 9.188 41 9.075 62 8. 093
21 9.187 42 9.059 63 7.982
22 9.186 43 9.040 64 7.862
23 9.185 44 9.019 65 7.731
24 9.184 45 8.996 66 7.591
25 9.183 46 8.971 67 7.431
26 9.182 47 8.943 68 7.262
27 9.180 48 8.913 69 7.083
28 9.178 49 8.881 70 6.897
29 9.176 50 8.846 71 6.703
30 9.173 51 8.808 72 6.502
31 9.169 52 8.768 73 6.296
32 9.164 53 8.724 74 6.085
33 9.159 54 8.678 75 5.872
34 9.152 55 8.627 76 5.657
35 9.145 56 8.572 77 5.443
36 9.136 57 8.512 78 5.229
37 9.126 58 8.446 79 5.018
38 9.116 59 8.371 80 4.812
39 9.103 60 8.287 81 4.611
40 9.090 61 8.194
8.3 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
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. F(E) III / 87 / PN / 1 / 7 dated 26.3.1987)
8.4 The quantum of pension/family pension available to the old
pensioners/family pensioners shall be increased as follows:
Age of Pensioners/Family
Additional quantum of pension
From 80 years to less than 85 years 20% of revised basic Pension/
From 85 years to less than 90 years 30% of revised basic Pension/
From 90 years to less than 95 years 40% of revised basic Pension/
From 95 years to less than 100 years 50% of revised basic Pension/
100 years or more 100% of revised basic Pension/
9.0 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
9.1 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 ` 3,500/- plus dearness relief
admissible from time to time. Qualifying service is irrelevant for sanction
of family pension at normal rates.
9.2 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. Family pensioners in receipt of enhanced family pension
on 01.01.06 are also covered under this provision.
9.3 Entitlement of Family Members to receive Family Pension
9.3.1 Widow/Widower including judicially separated wife till her/his death or
remarriage, whichever is earlier.
9.3.2 Son/unmarried daughter (equal shares in the case of twins) upto the age
of 25 years in the order of their birth. The family pension payable to the
son or daughter shall stop if he or she starts earning monthly income
exceeding ` 2550/.
9.3.3 If there are more than one legally wedded wives, to all the wives, in equal
shares and on the death of one widow, her share will be payable to her
eligible children, failing which, to the other widow in full.
9.3.4 Parents till death if no surviving family member i.e., either wife or children
is left behind by the Railway servant.
184.108.40.206 Missing employee
In case of employees whose whereabouts are not known and could not be
traced after filing FIR in the Police Station of their jurisdiction/for the place
where the employee disappeared, family pension can be paid to the
eligible family members after waiting for one year.
220.127.116.11 In case if the employee is traced and returns after the settlement dues
paid and commencement of payment of pension, he/she should repay the
amounts received by the family members and report back to duty with
the approval of the competent authority as per the extant rules and on
completion of formalities as prescribed.
18.104.22.168 The family of the missing employee has to submit the following
documents in support of their claim:
Copy of FIR filed.
Certificate issued by the Police Department stating that in spite of all
efforts made, the missing employee could not be traced.
Indemnity Bond duly signed by two serving Railway employees in the
Affidavit stating that in case the employee is traced, the payments
received by the family members shall be repaid to the administration
and also swearing that the information submitted is true.
10.0 RETIREMENT GRATUITY
10.1 It is a lumpsum payment granted to a Railway servant or his/her nominee
on his/her retirement or medical invalidation.
10.2 How is it calculated ?
10.2.1 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 `
10,00,000/- (Rupees Ten lakhs). The entire gratuity will be withheld in case
the employee does not vacate the railway accommodation provided to
10.2.2 Formula for Non-Running Staff
Gratuity = (Pay in the Pay Band + Grade Pay + DA) x Qualifying Service/2.
If an employee is retiring with 33 years qualifying service and his Basic Pay
is ` 16,050 in pay band ` 9,300-34,800 with GP ` 4,600, current DA @ 58%
(as on 01.07.2011) @ ` 11,977/-
Retirement Gratuity ` (16,050+4,600+11,977) x 33/2 = ` 32,627 x 16.5=`
5,38,345.50 i.e. rounded off to next rupee = ` 5,38,346/-
10.2.3 Formula for Running Staff
In case of Running Staff, 30% of Basic Pay will be treated as Pay rating the
Running Allowance. Dearness Allowance as on the date of retirement
shall be paid on the basic pay + the pay element of the Running Allowance
i.e., 30% of the Basic Pay.
Gratuity = Pay* + DA** x Qualifying Service
*Pay = Pay + 55% of Pay
** DA = (Pay + 30% of Pay) x DA as on the date of retirement
If an employee is retiring with 33 years qualifying service and his Basic Pay
is ` 18,660 in pay band ` 9,300-34,800 + GP ` 4,200, current DA @ 58% (as
on 01.07.2011) @ ` 13,259/-
Retirement Gratuity ` (18,660+4,200+12,573)+ 17,236 x 33/2 = ` 52,669
x 16.5=` 8,69,038.50 i.e. rounded off to next rupee = ` 8,69,039/-
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 service Rate of gratuity
(i) Less than one year 2 times of emoluments
(ii) One year or more but less than 5 years = 6 times of emoluments
(iii) 5 years or more but less than 20 years = 12 times of emoluments
(iv) 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 ` 10,00,000/-
10.3 Recoveries from Gratuity
Government dues, if any, could be recovered from the retirement gratuity
or Death gratuity of an employee even without obtaining his/her consent
and in the case of a deceased employee, without obtaining consent of the
members of his/her family. (Authority: Rule 15 of RSPR 1993)
11.0 PROVIDENT FUND
This is paid to the employee at the time of retirement from his/her own
contribution together with interest thereon. 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.
(Authority: Rule 941 R-I).
12.0 LEAVE ENCASHMENT
Leave salary is a lumpsum onetime payment of the unavailed 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. Accordingly the amount towards shortfall of LAP is
equivalent to half pay.
(Basic Pay + Grade Pay + DA) X No. of Days of LAP
Illustration : If an employee is retiring with pay of ` 16050 in payband `
9300-34800 with GP ` 4600 with current DA @ 58% (as on 1.07.2011) and
300 days LAP at credit, the amount calculated will be as follows:
` 16050 + 4600 + 11977/30 x 300 = (` 32627)/30 x 300 = ` 3,26,270/-
13.0 CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SCHEME
13.1 Group Insurance Scheme came into effect from 01.01.1982. It has become
compulsory for the employees who joined Railway service after
13.2 Rates of subscription per month shall be ` 15/- for Group D, ` 30/- for
Group C, ` 60/- for Group B and ` 120/- for Group A. The employee
joining service shall be enrolled as a member of the scheme on the next
anniversary of the scheme i.e. 1st January of the year following the year of
joining Railway service. The subscription is partly credited to an insurance
fund and partly to a savings fund. From the Insurance fund, an amount of `
15,000/-, ` 30,000/-, ` 60,000/- and ` 1,20,000/- respectively is payable
to the families of Group D, C, B and A in the event of death of the Railway
employee while in service. From the savings fund, an amount equal to the
portion of subscription credited to the fund together with interest thereon
will be returned to the employee on cessation of their employment. In
cases of death, apart from the Insurance amount, the family will also be
paid Savings Fund accumulation as mentioned above. On promotion of an
employee from one group to another, the subscription at the higher rate
shall be recovered from 1st of January of the year following the year of
promotion. Upto 31st December of the year of promotion, the employee
shall continue to be covered by the insurance scheme as applicable to the
group before promotion. Higher rate of subscription will be recovered
even if the employee is reverted. The subscription is apportioned between
insurance fund and savings fund @ 30% and 70% respectively, with effect
from 1.1.1988. (Authority: Railway Board’s Lr.No. PC III / 86 / GIS / 4 dt.
16.2.1988 and PC III/89/GIS/1 dated 19.9.1989)
13.3 Insurance amount cannot be withheld and no Government dues can be
recovered except the amount claimed by the financial institutions as due
from the employee on account of HBA.
14.0 RETENTION OF QUARTERS
14.1 The permissible period for retention of Railway accommodation in the
event of retirement is as under:
14.1.3 In case of Retirement
Retired employee including voluntarily retired employee can be permitted
to retain the Railway accommodation for the first 4 months on payment of
normal rent/ flat rent of license fee and for the next 4 months on
educational or medical grounds on payment of special license fee (i.e)
double the normal rent/ flat rate of licence fee/rent subject to production
of requisite certificate in support of the request.
(Authority Rly.Board’s letter No.E(G)2000/CR1/23 dt.30.11.2000 )
14.1.4 In case of Death
The family of Railway employee who dies while in service can be
permitted to retain the Railway accommodation for a period of 2 years on
payment of normal rent/ flat rent of license fee.
(Authority Rly.Board’s letter No.E (G) 98/CR1/11 dt.17.8.99)
14.2 Regularisation of Railway Quarters
The retiring Railway employee can however get the Railway quarter
regularised in favour of his/her son/daughter who is also Railway
employee at the time of his/her retirement provided, (a) the son/daughter
lived in the Railway quarters for at least 6 months duly foregoing house
rent allowance and (b) the son/daughter is also eligible for the type of
quarters being shared. However, married daughter and daughter in-law
are not eligible for regularisation/out of turn allotment of Railway
15.0 MEDICAL FACILITIES:
15.1 Retired Employees Liberalised Health Scheme (RELHS) – 1997 31
In terms of Railway Board’s letter no. 97/H/28/1 dated 23.10.1997, retired
Railway employees covered under RELHS-97 will be provided with full
medical facilities as admissible to serving employees under the Railway
Medical Attendance Rules. This scheme is also open to spouses of the
Railway employees who die in harness. Definition of “family” for the
purpose of this scheme will be the same as in respect of the serving
Railway employees. The definition of the “Dependents” will also be the
same as in Pass Rules. FOR JOINING RELHS-97, ONE TIME CONTRIBUTION
EQUAL TO THE LAST MONTH’S BASIC PAY WILL HAVE TO BE MADE AT THE
TIME OF RETIREMENT BY THOSE OPTING TO JOIN THE SCHEME. The
payment can be made in cash or by an authorisation to deduct from
gratuity. Those who joined RELHS-97 shall hold identity cards with
photographs of all the beneficiaries.
15.2 With effect from 1.12.1997, Pensioners are entitled to a medical
allowance of ` 300/- per month if they are residing outside the
City/Municipality/Town where the Railway Hospital/Health
Unit/Dispensary is situated. It is in lieu of out patient treatment and
admissible irrespective of possession of medical card.
16.0 POST RETIREMENT BENEFITS
16.1 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 upto
two years wrests with AGM.
16.2 Special Pass
One set of free pass 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.
16.3 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.
16.4 Post Retirement Complimentary Pass
16.4.1 Those who have completed 20 years of service or more but less than 25
iii. Group ‘C’ & ‘D’ : 1 set
iv. Group ‘A’ & ‘B’ : 2 sets
16.4.3 Those who have completed above 25 years of service
iii. Group ‘C’ : 2 sets
iv. Group ‘A’ & ‘B’ : 3 sets
17.0 POST RETIREMENT ISSUES
17.1 Service certificate Both Gazetted and Non-gazetted employees are issued service certificate
in prescribed proforma. This certificate consists details viz., date of birth,
date of appointment, date of retirement, post, pay band & grade pay, PPO
number, etc. On the backside of this certificate, detailed calculation of
Pension, Gratuity, Commutation, Encashment of leave, etc., is s of This
certificate may be used later while making various applications for
benefits after retirement.
17.2 Payment of pension through Bank
The amount of pension can be credited in the account of the pensioner, if
he is maintaining an account in his/ her sole name with any Branch of
Public Sector bank. The pension cannot be drawn through bank in a joint
account. All Railway pensioners (except those drawing through Post
Office) in any part of the country can draw their pensions through any
branch of the nominated banks.
17.3 Life certificate
Life certificate should be furnished to the Pension Disbursing Authority by
pensioner in the month of November every year. A certificate regarding
Non-employment or employment / re-employment in a department,
office, company, corporation, autonomous body or registered society of
State or Central Govt. etc is also required to be furnished to the Pension
Disbursing Authority in the month of November every year in the
(Authority : Board’s Lr.No. F(E) III / 88 / PN-1 dt. 9.8.1988)
Group ’A ‘officers are required to furnish a declaration within two years of
retirement regarding acceptance /non-acceptance of a commercial
employment or employment under any Government outside India. Until
the production of non-employment/ employment/re-employment
certificate by the pensioner/family pensioner, the element of dearness
relief shall not be disbursed.
(Authority : Board’s Lr.No. F(E)III/88/PN1/21 dt. 5.5.92)
18.0 IN THE EVENT OF DEATH OF EMPLOYEE IN SERVICE WHAT
THE PARTY SHOULD KNOW?
18.1 Payment of Immediate Relief (Funeral Advance in case of death of the
employee while in service)
An amount equal to 3 months basic pay or ` 15,000 whichever is less is
payable as funeral advance to the family of an employee who dies while in
service. This amount is recoverable from the Gratuity payable.
(Authority: Rly.Board’s Lr.No. E(W)98/WE/6/8 dt. 5.8.1999)
18.2 Photographs & Family details
Photograph of husband / wife, details of family members with dates of
birth and identification marks, death certificate in original, legal heir ship
certificate, guardianship certificate (in case both husband / wife are dead
and children are minor), Permanent Residential Address, and SB account
number, name of the bank, place etc., for drawal of family pension are to
be kept ready for speedy process of settlement papers
19.0 POINTS TO BE REMEMBERED.
19.1 Entire Gratuity will be withheld for non-vacation of Quarters and if any
departmental or judicial proceedings are pending.
19.2 Disbursement through Post Office would be permitted only in places
where branches of Public Sector Bank are not available
19.3 Family Pension is payable in the order of date of birth of the children
irrespective of male or female.
19.4 Length of qualifying service of over 9 years and 9 months but less than 10
years, will be reckoned as completed 10 years of service.
19.5 Pension Payment Order is a valuable document containing a running
account of pensionary entitlement. It is to be kept in safe custody.
19.6 All Pension/gratuity and Dearness Relief are payable in Indian currency
and in India only. Fraction, if any, will be rounded off to the next higher
19.7 No employee can earn two pensions in the same service/post at the same
time or by the same continuous service. However, there is no bar to an
employee drawing more than one pension on account of separate spells of
employment qualifying for separate pension or due to a combination of
pension and Family pension or civil & military pension.
19.8 Pension / Family Pension is payable upto and including the day on which
its recipient dies.
19.9 Grant of Pension and its continuance is subject to future good conduct of
19.10 Pension finally authorised cannot be revised to the disadvantage of the
pensioner except to correct a clerical error.
19.11 Government dues are adjustable against Gratuity or dearness relief.
19.12 Pension cannot be attached/seized etc for any demand against a
pensioner nor can a pensioner make any assignment in anticipation of
19.13 If a pensioner is convicted of a serious crime or is found guilty of grave
misconduct or negligence, pension may be withheld or withdrawn fully or
partly for a specified or indefinite period. Recovery from pension may also
be made for any pecuniary loss caused to the Government.
19.14 Documents to be supplied to the retired employees at the time of
Pension Payment Order
Medical Identity Card
Family Identity Card for Post Retirement Complimentary Pass.
3.5 Exemption from Income-Tax: The following Retirement/Death benefits are
fully exempted from Income-Tax:
Death-cum-Retirement Gratuity Clause 10 of Sec.10 of I.T. Act.
Commutation Value Sub-clause (i) of Clause (10-A) of Section 10 of I.T. Act.
Cash equivalent of unutilised leave Sub-clause (i) of Clause (10-AA) of
Section 10 of I.T. Act.
Employee’s co-operation with the Personnel Branch is vital to
ensure timely payment of settlement dues.
PAYMENT OF PROVIDENT FUND
(Payee’s letter of Authority for payment by Post Money Order/Cheque/Bank Draft)
The Financial Adviser & Chief Accounts Officer,
I request that my Provident Fund, special contribution to provident fund
or/and gratutity moneys may be remitted to me by postal money order or by
cheque/bank draft on _________________ bank sent by registered post at the
I agree that the remittance made in the aforesaid manner shall be at my sole
risk and shall be a complete discharge of Government from all liability on the
money being remitted by money order or in the cheque or bank draft being 36
forwarded by registered post, as the case may be. I enclose herewith a receipt for the
Station ________________ _________________________
Date __________________ (Signature or Left thumb impression)
Full name of the payee________________________
Father’s Name ______________________________
Received from ___________________________________________ the
sum of rupees _______________________________________________ in full and
final satisfaction my claim to the Provident Fund Amount/Special Contribution to
Provident Fund Gratuity.
(Signature or Left Thumb
impression of payee)
Full Address ________________________
Date _______________________________ 37
Certified that I have seen the pensioner Shri/Smt. …………………
………………….. who is *Physically handicapped son/daughter, minor son,
unmarried/ divorcee/ widowed daughter, child born after retirement, post
retirement spouse, wholly dependent parent, disabled sibling, any other
category (may be specified of Shri/Smt ……………………………………..
Original Pension Holder of the PPO No. ……………………………………
and that he / she is alive on this date. (Tick the correct)
Signature of Pensioner ________ Signature ………………………….
Place: _____________________ Name of the Pensioner …………..
Authorized Officer ………………
* * *