Emoluments/ Average Emoluments

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Master Circular No.55   Emoluments/ Average Emoluments for Pensionary Benefits CONTENTS   No. Subject 1 Introduction 2 Treatment of period of absence on EOL or Suspension prior to superannuation 3 Emoluments for retirement benefits of running staff 4 Pay drawn while on deputation to the Armed Forces shall be treated as emoluments 5 Case of deputation of a State Government employee to the Central Government and vice-versa 6 Case of a railway servant on deputation to the State Government 7 Regulation of notional emoluments not actually drawn and the increment falling during LHAP 8 Case of a Deputationist from one Central Government Department to another such Department seeks voluntary retirement 9 Cases of wrongful reversion caused by administrative errors, where on repromotion the pay of the railway servant is fixed on proforma basis 10 Average emoluments are to be calculated on the basis of actual number of days contained in each month 11 Various orders on emoluments/average emoluments for pensionary purposes 12 Link to Chapter IV of PensionManual 13 Link to Chapter 20 of IREC Vol. II 13 Other Orders of Railway Board on the Subject   Emoluments/AverageEmoluments for pensionary benefits   EMOLUMENTS/ AVERAGE EMOLUMENTS   With effect from01.01.1986 the term “Emoluments” means the pay as defined in Rule. 2003 (21) (a) (i)-RII which a  railway servant was receiving immediately before his retirement or on the date of his death. Similarly the average emoluments shall be determined with reference to emoluments drawn by a railway servant during the last10 months of his service.   (Letter No. PC IV/87/Imp/PN/l dated 15.04.1987and F(E)III76 PN1/3 dated22.03.1976)         2.         If a railway servant immeadiately before his retirementordeath while in service had been absent from duty on extraordinaryleave or had been under suspension, the period whereof does not countas service, the said period of leave or suspension shall be disregarded in the calculation of average emoluments and an equal period of3 years/10 months before the period of extra ordinary leave or suspension shall be taken into account.   (Letter No.F(E)III 68 PN1-29 dated 24.02.1969 and F(E)III76 PN1/5 dated 22.03.1976 & 13.09.1976) .   3.  In thecase of running staff, emoluments for retirement benefits shall also include55{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} of their basic pay.   (Letter No.  E(P&A)II 80/RS-10 dated 17.07.1981)   3.1The increase in pay which is not actually drawn shall not for a part of emoluments.   Provided that the benefit of higher officiating ar temporary pay is given only if it is certified that the railway servant would have continued to hold the higher officiating or temporaryappointment but for his proceeding on leave.   3.2    Pay drawn in tenure appointment will count towards emoluments.   3.3    If a railway servant immediately before his retirement or death while in service was on LAP not exceeding120 days and earned increment, such increment though not actually drawn shall form part of emoluments. Provided that the increment was earned during the currency of the earned leave not exceeding one hundred and forty days or during the first one hundred& twenty days and where such leave was for more than one hundred and twenty days.   (Letter No. F(P)58 CSR 1/5 dated 03.12.1958)   4.     Paydrawn by a railwayservant while on deputation to the Armed Forces shall be treated as emoluments. (Letter No. F(P) 58/CSR-1/1 dated 15.05.1958) 5.         In the case of deputation of a State Government employee to the Central Government and vice-versa, the question whether any part of deputation special pay received by him will count for pension is to be decided by the State Government in the former case and by the Central Government in the latter case with reference to its own Rules on the subject..   (Letter No.  i) F (P)62 PN1/17 dated 07.09.1962, F(E)III69 PN1/2 dated 31.01.1969 and F(E)III 82 PN1/6 dated 24.06.1983)   6.     In the case of a railway servant on deputation to the State Government, the position is that prior to01.01.1986, deputation duty allowance counted for pension since the deputation (duty) allowance is in the nature of special pay and the officiating pay which are covered by the definition of pay under Rule 2003 (21)- RII.  However this position has undergone change after01.01.1986 as the definition of pay for pensionary purposes does not include special pay as defined in Rule 2003(21) (a)(i)-RII.   (Letter No. PC-IV/87/Imp/PN/l dated 15.04.1987)   7.         With effect from01.01.1973, the benefit of notional emoluments not actually drawn, but not the increment falling during LHAP, counts for pensionary benefits subject to the conditions laid down in the orders.   (Letter No. F(E)III78 PN1/2 dated 04.04.1978)   8.         Determination of average emoluments for reckoning pension when a deputationist from one Central Government Department to another such Department seeks voluntary retirement and also applies for leave co-terminus with the notice period.   The emoluments drawn during the leave period shall be taken as what they would have been which the officer was drawing in the borrowing Department before proceeding on leave. (Letter No. F(E)III 84 PN1/3 dated 21.03.1984)   9.         In the cases of wrongful reversion caused by administrative errors, where on repromotion the pay of the railway servant is fixed proforma, the emoluments that the railway servant would have drawn but for his reversion shall be taken into account. (Para501 (4) (3) of MRPR).   10.    Average emoluments are to be calculated on the basis of actual number of days contained in each month.  A month for the purpose may be reckoned as consisting of30 days.  Detailed method alongwith illustration is given in Board’s letter No. F(E)III 31/PN1/5 dated 12.02.1982)   11. Various orders on emoluments/average emoluments for pensionary purposes issued from time to time are as under:-   i)          Emoluments drawn in the officiating grade during the period of LPR also counts towards emoluments subject to the condition that the competent authority certified that the railway servant could have officiated in the higher grade but for proceeding on LPR.   (PartIII of Letter No. F(P)58 PN1/18 dated 23.05.1958) ii)         Portion of emoluments received in temporary or officiating capacity immediately before retirement in respect of persons who retired during the period from 01.01.1948 to 01.01.1956 even though sanctioned or or after02.02.1956 shall be treated as emoluments in accordance with Article 487-B as the said Article caste into force on01.01.1948. (Letter No. F(P) 58/CSR1/1 dated 14.07.1958)   iii)        If a railway servant is promoted in a substantive or provisionally substantive capacity during the period of leave on average pay not exceeding four months, railway servant is entitled to count the enhanced pay on account of such promotion. (Letter No. F(P)58 CSR1/5 dated 03.12.1958)   iv)        A railway servant while on deputation or foreign service is entitled to count the emoluments against a vacant post on the basis of acertificate issued under Next Below Rule. (Letter No. F(P)59 CSR1/7 dated 29.09.1959)   v)         In respect of railway servants retiring from service on or after 1st November,1959, the term emoluments means the emoluments which the officer was receiving immediately before his retirement and includes   (a)  Substantive pay in respect of a permanent post other than a tenure post held in a substantive capacity;   (b)  Personsal allowance which is granted in lieu of 1ess of substantive pay in respect of a permanent post other than  a tenure post;   (c)  Special pay attached to other than a tenure post when the special pay has been sanctioncd permanently and  the post is held in a substantive capacity. (Letter No. PC 60/RB-3/7 dated 01.11.1960)   vi)        If a railway servant who retires from a service on or after 01.09.1962 while holding the permanent post in a substantive capacity-   (a)   Officiates in a higher permanent post (other than a tenure post) or helds a higher temporary post (other than a tenure post) borne on a cadre which includes permanent posts on the same time scale as the temporary post continuously for not less than three years and retires or dies while so officiating or holding the higher post, or   (b)  is confirmed in such higher permanent post at any time during  the last three years of his service after having officiated in that post continuously for three years or more his emoluments for pension in respect of the higher post for any period beyond three years continuous service in that post shall be determined under (a) above as if he held in substantive capacity, a permanent post on a time scale identical with that of the higher post. (Letter No. F(P)62 PN1/19 dated 12.12.1962 and F(P)62 PN1/2 dated 23.08.1963.   vii)       In respect of a railway servant quitting service on or after 15th June,1968, emoluments shall mean the pay as defined in Rule2003 (21) which the Railway servant was receiving immediately before quitting service.   Provided that the benefit of higher officiating pay for (ordinary)gratuity Death cum retirement gratuity will be given only if such pay was/would have been drawn continuously for a period of not less than22 days. Average emoluments shall mean the average of the emoluments as defined above calculated upon the last three years of service.   In the case of running staff, emoluments for(ordinary) gratuity/DCRG will also include the monthly average of running allowance drawn during the365 days of running duty immediately preceding the date of quitting service limited to75{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} of the total amount of the running allowance drawn during the month limited to a maximum of75{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} of other emoluments as defined above shall also be taken into account.   Note:1)  If a railway servant, immediately before his retirement or death etc. has been absent from duty or on leave with allowances (including leave preparatory to retirement) or on foreign service or having been suspended but reinstated without forfeiture of qualifying service, his emoluments should be taken at what they would have been had he not been on such leave or foreign service or suspension.   Provided that the emoluments shall not be increased on account of increase in pay not actually drawn and that the benefit of higher officiating or temporary pay is given only if it is certified that he would have continued to hold the higher officiating or temporary appointment but for his proceeding on leave.   Note:2)  Pay drawn in tenure appointment will count for pension for persons governed by the Railway Pension Rules,1950)   (Letter No. F(E)III68 PN1/29 dated 24.02.1969)   viii)      In respect of persons who retired on or after01.01.1973 the maximum limit of15 times emoluments for calculating DCRG raised to16½times and the maximum emoluments for the purpose of DCRG raised from Rs.1800 to Rs. 2500/-.   (Letter No. PC III/73/ PN/3 dated 19.06.1974)   ix)        With effect from01.01.1976 the term average emoluments for pension means the average calculated upon the last10 complete months of service instead of last three years of service. (Letter No. F(R)III/76 PN1/3 dated 22.03.1976 and13.09.1976)   x)         In respect of persons retiring on or after31.03.1979 pension to be worked out on the basis of the following slabs i.e. on the basis of formula known as Liberalised Pension Formula   a) Upto first Rs.1000 of averase   emoluments reckonable for pension. 50{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a}of average emoluments. b)   Next Rs.500 of average emoluments reckonable for pension 45{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a}of average emoluments. c) Balance of average emoluments reckonable for pension. 40{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} of average emoluments subject to overall ceiling prescribed in th orders.   (Letter No. F(E)III79 PN1/4 dated 01.06.1979) xi)    The benefit of above Liberalised Pension formula was extended to all railway pensioners who were in receipt of pension on01.04.1979 i.e. irrespective of the date of retirement of the pensioner.  (Letter No. F(E)III 83 PN1/8 dated 29.11.1983)   xii)       Method as to how the period of10 months for the purpose of calculation of average emoluments is to be determined is explained in the  following letter. (Letter No. F(E)III81 PN1/15 dated 12.02.1982)   xiii)    When an officer who is on foreign service or on deputation to Armed forces or on deputation from one Government Department to another seeks voluntary retirement from service instead of joining the parent department applies for leave co-terminus with the period of notice, his emoluments for pensionary purposes shall be determined on the basis of pay drawn by him during the leave period. (Letter No. F(E)III84 PN1/3 dated 21.03.1984)   xiv)     With effect from01.01.1973, notional pay not actually drawn (but not the increment falling during LHAP) by a railway servant who had held higher appointment whether in an  officiating or temporary capacity shall count as emoluments if it is certified by the competent authority that the railway servant would have continued to hold the higher appointment but for his proceeding on leave. (Letter No. F(E)III75 PN1/13 dated 09.03.1976 and F(E)III78 PN1/2 dated 04.04.1978)   xv)      In the case of wrongful reversion caused by administrative errer when on repromotion the pay of the railway servant is fixed, the emoluments that the railway servant would have drawn but for his reversion shall count for pensionary purposes. (Para 501(4) (3) af MRPR)   xvi)     Non practising allowance granted to Doctors counts for pensionary purposes. (Letter No. PC60 RB3/7 dated 07.08.1962 and PC-IV/87/Imp/17 dated 06.10.1987)   Treatment of running aliewance as emoluments for pensionary purposes.   xvii)    Various orders indicating the element of running allowance that counted towards emoluments from time to time and the other clarifications in this regard are as under:   1.    F(P)58 PN1/17 dated15.11.1958 2.    PC 60/RB-3/7 dated17.09.1960 3.    PC 60/RA-2/1 dated22.05.1961 4.    F(P)58 PN1/17 dated 14.03.1961 5.    PC 60/RA-2/1 dated11.12.1961 6.    PC 60/RA-2/1 dated26.09.1962 7.    PC III/75/RA/1 dated22.03.1976 8.    PC III/75/RA/1 dated23.06.1976 9.    PCIII/75/RA/1 dated17.08.1979 10.  E(P&A) II-80/RS-10 dated17.07.1981.     Orders pertaining to the counting of emoluments drawn by an officer while on deputation from State Government to the Railways and vice versa issued from time to time are as under:   1.  F (P)  58/CSR-1/1 dated15.03.1958 2.  F (P)  58/PN-1/18 dated02.05.1958 3.  F (P)  62 PN1/17 dated07.09.1962 4.  F (E)III 69 PN1/2 dated31.01.1969 5.  F (E) III82 PN1/6 dated24.06.1983 6.  F (E) III71 PN1/13 dated09.06.1971.

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