Pension: RBE No.90/1987 – 4th Central Pay Commission

No.PC-IV/87/Imp/PN/1, dated 15.04.1987

Sub: Revision of provisions regulating pension in pursuance of Governments decisions on the recommendations of the 4th Central Pay Commission and grant of pensionary benefits to temporary Railway servants.

1. In pursuance of the Government’s decisions on the recommendations of the Fourth Central Pay Commission, the President is pleased to introduce the following modifications in the rules regulating pension, death-cum-retirement gratuity and family pension under the provisions of the Manual of Railway Pension Rules, 1950 (hereafter referred to as Pension Rules) and such other rules and orders as may be in force.

2.     These orders will apply to all Railway employees governed by the Manual of Railway Pension Rules, 1950.

DATE OF EFFECT

3.1   The revised provisions as per these orders shall apply to all Railway servants who retire/ die in harness on or after 01.01.1986. Separate orders are being issued in respect of Railway employees who retired/ died before 01.01.1986.

3 2   Where pension has been provisionally sanctioned in cases occurring on or after 01.01.1986, the same shall be revised in terms of these orders in cases where pension has been finally sanctioned under the pre-revised orders and if it happens to be more beneficial than the pension becoming due under these order, the pension already sanctioned shall not be revised to the disadvantage of the pensioner in view of relevant provisions in the Manual of Railway Pension Rules, 1950.

EMOLUMENTS

4.1   The term ‘Emoluments’ for purpose of calculating various retirement and death benefits shall mean basic pay as defined in rule 2003(21)(a)(i) [FR 9(21)(a)(i)] R-II which the Railway servant was receiving immediately before his retirement or on the date of his death. Similarly, the term ‘Average Emoluments’ shall be determined with reference to emoluments drawn by a Railway servant during the last ten months of his service.

4.2   The term ‘Pay’ in these orders means the pay in the revised scales promulgated under the Railway Services (Revised Pay) Rules, 1986.

PENSION

5.1   The Service Gratuity for qualifying service less than ten years shall be calculated at a uniform rate of half month’s emoluments for every completed six-monthly period of service instead of at the rates specified in the Table below the relevant provisions of Manual of Railway Pension Rules, 1950.

5.2   Pension shall be calculated at 50% oraverage emoluments in all cases instead of under the slab formula, subject to a minimum of Rs.375 p.m. (vide Board’s letter No.F(E)87/PN1/6, dated 09.03.1987 (RBE No.326/1987) and maximum of Rs.4500 p.m. Other provisions contained in Board’s letters No.F(E) III/79/PN 1/4, dated 01.06.1979 and No.F(E)III/79/PN 1/10, dated 25.08.1983 shall continue to apply.

COMMUTATION OF ADDITIONAL PENSION

6.1   Additional pension, if any, becoming due as a result of these orders will also qualify for commutation. Pensioners can commute upto one third of additional pension (difference), if they so desire.

RETIREMENT GRATUITY/ DEATH GRATUITY

7.1   In the case of a Railway servant who has completed five years qualifying service, Retirement Gratuity on retirement shall be paid equal to one fourth of his emoluments for each completed six-monthly period of qualifying service subject to a maximum of 16-1/2 times the emoluments, provided that the amount of Retirement Gratuity payable shall, in no case exceed one lakh rupees. There will also be no ceiling on reckonable emoluments for calculating the gratuity.

7.2. In the event of death in harness, the Death Gratuity shall be admissible at the following rates:

	Length of 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 a maximum of 33 times emoluments provided that the amount of Death Gratuity shall in no case, exceed one lakh rupees.

There will be no ceiling on reckonable emoluments for calculating gratuity.

FAMILY PENSION, 1964

8.1. The rates of family pension mentioned under the relevant provisions of Manual of Railway Pension Rules, 1950, and such other relevant orders as are in force, shall be revised as follows. These will be inclusive of dearness relief upto average CPI 608.

	Basic pay per month	Rate of Family Pension per month inclusive of dearness relief upto average CPI 608
(i)	Not exceeding Rs.1500	30% of basic pay subject to a minimum of Rs.375
(ii)	Exceeding Rs.1500 but not exceeding Rs.3000	20% of basic pay subject to a minimum of Rs.450
(iii)	Exceeding Rs.3000	15% of basic pay subject to a minimum of Rs.600 and a maximum of Rs.1250

9.     In the case of Railway servants who have opted for the revised scales of pay and retire within ten months from the date of coming over to the revised scale, ‘average pay’ for ten months period preceding retirement shall be calculated by taking into account pay as follows:

(i) For the period during which pay is drawn in pre-revised scale –

(ii) For the period during which pay is drawn in revised scale –

basic pay in the revised scales.

TERMINAL BENEFITS

10.1 In partial modification of the Ministry of Railways letter No.F(E)III 78/PN-1/13, dated 21.02.1981, temporary Railway employees who retire on superannuation or on being declared permanently incapacitated for further Railway service by the appropriate medical authority after having rendered temporary service of not less than ten years, shall be eligible for grant of superannuation/ invalid pension, retirement gratuity and family pension at the same scale as admissible to permanent employees under the relevant provisions of the Manual of Railway Pension Rules, 1950, and such other orders as may be in force.

10.2 Temporary employees who seek voluntary retirement after completion of 20 years of service shall continue to be eligible for retirement pension and other pensionary benefits like Retirement Gratuity and family pension under the relevant provisions of Manual of Railway Pension Rules, 1950 in terms of this Ministry’s letter No.E(P&A)I-85/FE4-7, dated 07.11.1986 (RBE No.216/1986).

DEATH BENEFITS

11.   In the event of death in harness of temporary Railway servants, their families shall be eligible to family Pension and Death Gratuity on the same scale as admissible to families of permanent Railway servants under the Manual of Railway Pension Rules, 1950.

SPECIAL PROVISION FOR THOSE RETIRING BETWEEN 01.01.1986 AND 30.06.1987

12.1 Those who have retired or will be retiring between 01.01.1986 and 30.06.1987, will have an option to retain the pre-revised scales of pay and have their pension and death-cum-retirement gratuity calculated under the rules in force immediately before coming into effect of these orders. Railway employees who have already exercised their option in favour of the revised scales of pay are given another opportunity to re-opt pre-revised scales of pay from 01.01.1986, provided they refund to the Government the excess pay and allowances drawn by them as a result of coming over to the revised scales of pay. The pension and death-cum-retirement gratuity in such cases will be regulated as follows:-

(i) The terms ‘emoluments’ will mean pay as defined in Rule 2003 (21) [E2 (R)9 (21)] R-II and will include DA/ ADA/ Ad-hoc DA upto average CPI 568 in terms of this Ministry’s letter No.PC-III/85/DP/1, dated 27.06.1985 (RBE No.188/1985) as also the interim relief.

(ii) Pension will be calculated at 50 per cent of average emoluments. To the pension so calculated dearness relief beyond 568 CPI and upto 608 CPI at the rates contained in Table IV below the Department of Pension’s O.M. No.42(4) P&PW/86, dated 03.03.1986 circulated in Board’s letter No.PC-III/82/PN/1, dated 19.03.1986 (RBE No.60/1986) shall be added. The amount so arrived at will be regarded as pension.

(iii) Personal pension, if any, in terms of this Ministry’s letter No.PC-III/85/DP/1, dated 27.06.1985 (RBE No.188/1985) will also be allowed, where due, but this will continue as a separate element and will continue to be excluded from calculation of dearness relief as at present.

(iv) Death-cum-retirement gratuity shall be admissible with reference to emoluments at (i) above under the orders in force immediately before coming into effect of these orders. The maximum reckonable emoluments shall be Rs.4000 and the maximum amount of gratuity shall not exceed Rs.50000 in terms of this Ministry’s letter No.F(E)III/82/PN1/3, dated 17.05.1985 (RBE No.144/1985).

(v) Family pension shall be allowed in accordance with the orders applicable prior to the issue of these orders and shall be calculated with reference to basic pay in the pre-revised scale. To the family pension so calculated dearness relief upto average CPI 608 at the rates contained in Table-I below this Ministry’s letter No.PC-III/82/PN/1, dated 19.03.1986 (RBE No.60/1986) shall be added. The amount so arrived at will be regarded as the family pension for regulating payment of dearness relief beyond average CPI 608.

12.2 The option referred to in paragraph 12.1 will have to be exercised within three months of the date of the issue of these orders. In cases where the employee has already come over to the revised scales of pay and does not exercise any option to go back to the pre-revised scales of pay in terms of these orders, it will be deemed that he has accepted his pension and other retirement benefits to be calculated in terms of paragraph 5 to 8 of these orders with reference to his basic pay in the revised scales, promulgated under the Railway Services (Revised Pay), Rules, 1986.

13.   In the case of persons who retain pre-revised scale and retire or die in harness subsequent to 30.06.1987, Pension, Retirement Gratuity, Death Gratuity and Family Pension, as may be relevant, shall be calculated in terms of paragraph 5 to 8 of these orders. The ‘emoluments’ for calculation of pensionary benefits in their case will be the basic pay in the pre-revised scale, plus dearness allowance, additional dearness allowance, ad-hoc dearness allowance admissible upto CPI 608 in terms of Ministry of Railways letter No.PC-III/86/DA/1, dated 03.03.1986 (RBE No.50/1986), appropriate to the basic pay, Plus two instalments of interim relief at the rates in force on 31.12.1985, appropriate to the said basic pay.

14.   Formal amendments to the Manual of Railway Pension Rules, 1950, in terms of the decisions contained in this order will be issued in due course. Provisions of the Manual of Railway Pension Rules, 1950, which are not specifically modified by these orders, will remain unaffected.

15.   The pension/ family pension in terms of these orders will qualify for dearness relief beyond average CPI 608 under the revised pattern being introduced on the recommendations of the Fourth Central Pay Commission.