Government of India Ministry of Railways Master Circular No. 60 Pension and Retirement/Death Gratuity CONTENTS No. Subject Part 1 – Pension 1 Eligibility to Pension and amount of pension 2 Classes of Pension 2.1 Superannuation pension 2.2 Retirement on last day of the month in which Superannuation falls 2.3 Retiring Pension 2.4 Pension on absorption in or under a Corporate Company or Body 2.5 Invalid Pension 2.6 Compensation Pension 2.7 Compulsory Retirement pension 2.8 Compassionate Allowance 3 Retirement on completion of 30 years qualifying service 4 Retirement on completion of 20 years qualifying service PART-II – RETIREMENT/DEATH GRATUITY 1 Entitlement of Retirement Gratuity 2 Persons to whom gratuity is payable 2.1 When Rly servant dies after retirement without receiving gratuity 2.2 The right of the female member/brother of a railway servant 2.3 Definition of Family 3 Disbursement of share of minor member 3.1 Where no valid nomination subsists 3.2 Where valid nomination subsists 4 Nomination 5 Payment to Minor Through His Guardian 6 Payment of Death/Retirement Gratuity on succession certificate Part III (A) – Railway Boards Orders on Pension 2 Admissibility of Pension/Gratuity 3 Rate of Superannuation/Invalid/Compensation Pension/Gratuity in respect of railway servants who retired on or after 01.01.1959 4 Application for Commutation of Pension 5 Dispensing with the requirement for obtaining declaration for refund of the excess payment of pension/gratuity/family 6 Admissibility of Pension/Ordinary Pension and Gratuity based on Qualifying Service 7 The amount of pension should be expressed in whole rupees 8 The Min’m Superannuation/Retirement/Invalid/Compensation Pension 9 Clarification on Minimum Pension 10 Benefit of commutation allowed on the difference between the original pension and the enhanced pension 11 Pension including Compassionate Allowance shall not be reduced below the minimum permissible pension 12 Rate of Gratuity wef 01.01.1973 13 Grant of relief on pension to Class II/III/IV Rly servants on the recommendation of the Third PC 14 Relief on pension was also granted to Pre 01.01.1973 pensioners 15 Relief on pension was also granted to Class I Officers 16 Meaning of Emoluments as on 01.01.1973 17 Clarification on relief on pension admissible on Compassionate Allowance 18 Double Relief on Pension 19 Rules permittingreduction in pension because of unsatisfactory service record modified 20 Provisional pension to the retiring railway servants against whom departmental or judicial proceedings had been instituted or continued after retirement 21 Order relating to relief and adhoc relief on pension to the retiring railway servants 22 Introduction of Slab system the Liberalisation of Pension Formula 23 Rules on Authority Competent to reduce in pension because of unsatisfactory service record deleted 24 Pension/Gratuity/Family pension to Temporary Staff 25 Upper Ceiling Limit of DCRG 26 Additional dearness allowance treated as pay for pensionary benefits 27 Minimum amount of Pension/Family pension including relief thereon w.e.f 01.04.1982 or thereafter 28 Minimum amount of Pension/Family pension including relief thereon w.e.f 01.04.1983 or thereafter 29 Fraction of a year equal to three months and above be treated as completed one half year for qualifying service 30 Notice of Withdrawal Voluntary Retirement 31 Arrears of pension on the death of a pensioner are payable to his nominee 32 Liberalised Pension Formula was extended to all pensioners who were in receipt of Superannuation/Retiring Compensation/Invalid Pension as Compassionate Allowance 33 55{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} of pay element allowed to be counted as emoluments for retirement purposes for Running Staff 34 Entire additional DA and adhoc DA(linked to average index level 568) treated as dearness pay for retirement benefits 35 VR under Para 620 of MRPR i.e. after 30 years qualifying shall not be applicable to those on assignment to ITDC/posted abroad in foreign-based posts of the Govt/are on specified assignment to foreign Govts 36 The ceiling limit of pension plus relief in the case of a pensioners who retired before 31.03.1979 and after 31.03.1979 37 Minimum pension w.e.f 01.01.1986 38 Pension to be calculated at 50{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} of average emoluments subject to a minimum of Rs.375/- and a maximum of Rs. 4500/- per month w.e.f. 01.01.1986 39 W.e.f 28.10.1987, the benefit of added years of service under Rule 2423-A/R-II shall be admissible to those who retired from service or post after 31.03.1960 40 Families of persons who retired prior to 01.01.1986 with not less than 10 years temporary service and were not eligible for pension were made eligible to the grant of family pension 41 Pensioner to furnish unemployment or employment/re-employment certificate once in a year in the month of November each year Part III (B) – Summary of Railway Boards Orders on Gratuity 2 The provisions regarding eligibility of DCRG, amount admissible and the persons entitled to receive the DCRGetc 3 Permanent Rly Servants to make nomination for payment of DCRG 4 Pensioner after retirementcannot make nomination for DCRG 5 The amount of Gratuity/Pension and DCRG and the commutation vis-à-vis 12 times of Emoluments 6 Revised forms for admissibility of DCRG/Residual gratuity and family pension for the family of the deceased railway servant 7 Terminal Gratuity 8 Anticipatory DCRG 9 Personal staff of Ministers and Deputy Ministers appointed at the discretion of the Minister/Deputy Minister 10 Invalid Gratuity/Pension 11 Anticipatory Gratuity 12 DCRG equal to twomonths emoluments payable to a person who dies during the first year of his service 13 Amount Payable to be Rounded off 14 Adopted/Step Children eligible to be included in ‘family’ for receiving Terminal/Death Gratuity 15 ‘Government dues’, which can be deducted from the DCRG 16 A portion of DA to be treated as pay for determining pension and gratuity w.e.f 01.12.1968 17 Average pay for reckoning terminal/death gratuity for temporary railway servants 18 No deduction to be made from the DCRG as contribution towards FP as was required under the FP Scheme 1964 w.e.f 22.07.1977 19 A portion of DA was treated as Dearness Pay for retirement benefits for Staff/Officers 20 The gratuity shall be calculated on the last pay drawn and not based on average emoluments 21 Interest on delayed payment of gratuity 22 No Gratuity Payment until the conclusion of the DARProceedings 23 Delegation of powers to GMs to Sanction Interest on delayed payment of DCRG 24 Maximum Limit of DCRG w.e.f 01.01.1973 25 The day of death as per extant Rules is regarded as a day of duty 26 The benefit of enhanced commutation on revised pension 27 Upper ceiling limit of gratuity payable 28 Rounding off of DCRG 29 The Service Gratuity for Qualifying Service of less than 10years 30 The President’s right of Withholding/Withdrawing Pension/Gratuity or both Pension and Retirement/Death Gratuity Length of service Rate of gratuity (i) Less than one year 2 Times of emolument. (ii) One year or more but less than 5 years. 6 Times of emolument. (iii) 5 years or more but less than 20 years 12 Times of emoluments (iv) 20 years or more Half of the 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 Rs. one lakh. (Letter No. PC IV/87/Imp/PN/l dated 15.04.1987) 2. Persons to whom gratuity is payable (a) Gratuity shall be paid to the person or persons on whom right to receive the gratuity is conferred by means of nomination. (b) If there is no nomination or if nomination does not subsist the gratuity shall be paid in the manner indicated below. (i) If there are one or more surviving members of the family as given under items (i) to (iv) of the term “family” given under Para 2-3 past, to all such members in equal shares. (ii) If there are no such surviving members of the family as in item (i) above but if there are one or more members as given in items (v), (vi), (vii), (viii), (ix), (x) and (x) to all such members in equal shares. 2.1If a railway servant dies after retirement without receiving the gratuity, the same shall be disbursed to the family as indicated above. 2.2The right of the female member of the family or that of the brother of a railway servant who dies while in service or after retirement to receive the gratuity shall not be effected if the family member marries or remarries or the brother attains the age of 18 years, after the death of the railway servant before receiving her or his share of the gratuity. Where gratuity is granted to a minor member of the family of the deceased railway servant, it shall be payable to the guardian on behalf of the minor. (Letters No. F (E) 50 RT1/6 dated 16.11.1957, F (P) 64 PN1/42 dated 22.06.1966, F (P) 58 PN1/5 dated 02.02.1960 and para 702 of MRPR) . 2.3The term ‘family’ in relation to DCRG is as under: – (i) Wire or wives (including judicially separated wife or wives) (ii) Husband (including judicially separated husband in the case of a female railway servant) (iii) Sons including step sons and adopted sons (iv) Unmarried daughters including step daughter and adopted daughters (v) Widowed daughters including stepdaughter and adopted daughters (vi) Father (Including adoptive parents in the case of individuals whose personal law permits adoption) (vii) Mother – Do (viii) Brother below the age of 18 years including stepbrothers (ix) Unmarried sisters and widowed sisters (x) Married daughters and (xi) Children of pre deceased son (Letter No. F (E) 50/RT1/6 dated 16.11.1957, F (P) 59 PN 1/11 dated 30.08.1960, F (P) PN 1/11 dated 2l.03.1961 and F (P) 64 PN1/42 dated 22.06.1966) 3. The position as to whom the share of a minor in the capacity of minor natural/legal guardian would be payable is as under. (i) Where no valid nomination subsists: (a) When share is payable to a minor son or minor unmarried daughter, it should be paid to the surviving parents except in the case where the surviving parent happens to be a Muslim lady. When there is no surviving parent or surviving parent is a Muslim lady, payment will have to be made to a person producing the guardianship certificate. (b)When the share is payable to widowed minor daughter daughters, production of guardianship certificate would be necessary. (c)If in a rare case the wife herself happens to be minor death/retirement gratuity payable to her shall be paid to the person producing the guardianship certificate. (d)When the death/retirement gratuity becomes payable to a minor brother or minor unmarried sister, the payment should be made to the father or in his absence to mother of the beneficiary except in a case where the mother happens to be a Muslim lady. In this case, too, if there is no surviving parent or surviving parent happens to be Muslim lady, the payment will have to be made to the person producing the guardianship certificate. If any share is payable to a widow miner sister, the production of guardianship certified would be necessary. (ii) Where valid nomination subsists: (a) Where the nomination is in respect of one or more of the members of the family, the position stated at (i) would apply. (b)Where there is no family, the nomination in favour of an illegitimate child or married sister would also be valid. The position would therefore be as follows. (i)If the nominee is an illegitimate child, the share will be payable to the mother and in her absence production of guardianship certificate would be necessary. (ii)If the share is payable to married minor girl the share will be payable to the husband. (Letter No. F (P) 56 PN1/5 dated 02.02.1960) 4. Nomination: 4.1A railway servant, shall, on his initial confirmation in a service or post, make a nomination conferring on one or more persons the right to receive the retirement gratuity death gratuity. Provided that if at the time of making the nomination, (a) Has a family, the nomination shall not be in favour of any person or persons other than the members of his family; or (b) Has no family, the nomination may be made in favour of a person or persons or a body of individuals whether incorporated or not. 4.2If a railway servant nominates more than one person he shall specify is the nomination the amount of at share payable to each of the nominee in such manner as to cover the entire amount of gratuity. 4.3A railway servant may provide in the nomination (i) That in respect of any specified nominee who predeceases the railway servant or who dies after the death of the railway servant but before receiving the payment of the gratuity, the right conferred on that nominee shall pass to such other persons as may be specified in the nomination. Provided that if at the time of Baking the nomination the railway servant has a family consisting of more than one member, the person so specified shall not be a person other than a member of his family. Provided further that where a railway servant has only one member in his family and a nomination has been made in his favour, it is open to the railway servant to nominate alternate nominee or nominees in favour of any person or a body of individuals whether incorporated or not (ii)That the nomination shall become invalid in the event of the happening of the contingency provided therein. 4.4The nomination made by a railway servant who has no family at the time of making it or the nomination made by a railway servant where he has only one member in his family shall become invalid in the event of the railway servant subsequently acquiring a family or an additional member in his family as the case may be. 4.5 A railway servant may cancel a nomination at any time by sending a notice in writing to the Head of Office and send a fresh nomination in accordance with the rules, 4.6 Immediately on the death of a nominee in respect of whom no special provision has been made or on the occurrence of any event because of which the nomination becomes invalid, the railway servant shall send a notice in writing cancelling the nomination together with a fresh nomination 4.7 Every nomination made including notice of cancellation shall be sent to the Head of Office who immediately on receipt of such nomination countersign it indicating the date of receipt and keep under his custody. Head of Office may authorise his subordinate Gazetted railway officer to countersign nomination forms of non gazette railway servant, Suitable entry regarding receipt of nomination shall also be made in the service book of the railway servant concerned. 4.8Every nomination made and every notice of cancellation given by railway servant shall, to the extent that it is valid take effect from the date on which it is received. Nominations for death/retirement gratuity are important documents based on which the claims of the beneficiaries have to be established and settled. To obviate the possibility of such losses in future, nomination papers should, after countersignature, be kept in a separate confidential file which should be lodged for safe keeping with the Head of the Office or other responsible officer nominated by him for this purpose and a clear note made in the service book of the officer as to that nomination and related notices have been received so that there should be no difficulty in locating the documents when the occasion for making a reference to the arises. (Letter No. F (E) 50 RT1/6 dated 16.11.1957, F (E) 64 PN 1/23 dated 12.05.1964 and F (E) III 75 PN1/2 dated 30.07.1975) 5. Payment of death/retirement gratuity to the extent of Rs. 5000/- later raised to Rs. 10,000) Rs. 10.000/- (or first Rs. 10,000/- where the amount payable exceeds Rs. 10,000/-) in favour of a minor nay be made to his/her guardian in the absence of a natural guardian, without production of formal guardianship certificate subject to the production of indemnity bond with suitable sureties to the satisfaction of the sanctioning authority. For details and the format of Indemnity Bond, see the following orders. (Letter No. F (P) 65 PN1/1 dated 21.04.1965, F (P) 66 PN1/27 dated 03.11 1966 and F (E) III/88/PN 1/42 dated 20.10.1989) 6. Payment of Death/Retirement Gratuity on succession certificate: Where a railway servant dies white in service or after retirement without receiving the amount of gratuity and leaves behind no family and has also not made any Nomination or the nomination made by him/her does not subsists, the amount of death/retirement gratuity payable in respect of such a railway servant shall not lapse to the Government but shall be payable to the person in whose favour succession certificate has been granted by the Court of Law. (Letter No. F (E) III/90/PN1/36 dated 20.12.1991) Part III (A) Pension 1. Various orders on matters concerning pension issued from time to time. 2.On introduction of pension scheme on the Railways vide Board’s letter No. (E) 50/RT1/6 dated 16.11.1957, Pension Rules as in force at that time were also circulated to the Railways. As per Pension Rules, pension and/or gratuity was admissible in the following cases. (a) Retirement on superannuation (b) Retirement on Medical invalidation (c) Retirement on completion of 30 years qualifying service (d) Abolition of post 2.1Pension was admissible at the scale of 30/80 of average emoluments subject to a maximum of Rs. 8100/- per annum. Those who had completed 5 years service and were not eligible for pension were entitled to service gratuity at the rates prescribed in the orders. Other important features of the Pension Rules were detailed in the said orders. (Letter No. F (E) III 50/RT1/6 dated 16.11.1957) 2.2Over payment of arrears of pension, DCRG and family pension could be recovered from the pensioner or his family. Declaration shall be signed by the Pensioner/family agreeing to refund the excess payment. (Letter No. F (P) 58 CSR 1/6 dated 23.11.1958) 3.Consequent upon further liberalisation in the Pension scheme as recommended by the Second Pay Commission, the amount of superannuation, Invalid and Compensation Pension and Gratuity in respect of railway servants who retired on or after 01.01.1959 was fixed as under: – Gratuity Ranging from 1/2 month’s emoluments for each six monthly period of qualifying service to 8.1/8 months emoluments for 19 completed six monthly periods of qualifying service. Pension At the rate of 10/80thofaverageemolumentsfor 10 years qualifying service to 30/80th of average emoluments for 30 years and above qualifying service subject to a maximum of Rs. 8100/- per annum (Letter No. PC 60/RB-3/7 dated 01.11.1960) 4.A pensioner who desires to commute a portion of his pension is required to furnish two copies of passport six photographs alongwith his application for commutation. (Letter No. 59 PN 1/14 dated 28.01.1961) 5. The requirement for obtaining declaration for refund of the excess payment of pension/gratuity and family pension was dispensed with. Instead, the pensioner is required to be served with a notice to refund the excess payment failing which the excess payment is recovered from the pension, DCRG or the family pension in one or more instalments. (Letter No. F (P) 62 CSR 1/1 dated 01.06.1962) 6.Based on the accepted recommendations of the Second Pay Commission Draft Chapter I of the Manual of Railway Pension Rules was circulated to the Railways, indicating inter alia that pension is admissible to a permanent railway servant with 10 years qualifying service. Those with less than 10 years qualifying service are entitled to ordinary gratuity at the scale prescribed in the circular. Temporary railway servants are entitled to terminal gratuity. 6.1 A permanent railway servant who died while in service or had completed 5 years qualifying service was entitled to DCRG in addition to ordinary gratuity. The quantum of ordinary gratuity, pension/DCRG and the terminal gratuity admissible is given in the following orders. While the pension admissible shall be a maximum of Rs. 675/- per month, the amount of DCRG payable shall not exceed Rs. 24000/-. Minimum pension fixed at Rs. 25/- per month. (Letter No. F (E) 62 PN 1/19 dated 12.12.1962, F (P) 64 PN 1/1 dated 02.01.1964 and F (P) 69 PN 1/10 dated 26.06.1969) 7.The amount of pension finally determined should be expressed in whole rupees and where the pension contains a fraction of rupee it shall be rounded off to the next higher rupee. Clarification issued that orders for rounding off the pension to the next higher rupee are applicable to all classes of pension including Extraordinary Pension, and the Compassionate Allowance, which is in the nature of pension. (Letter No. F (P) 66 PN 1/13 dated 07.04.1966, 14.04.1967 & 21.12.1967) 8.With effect from 01.03.1970, the minimum superannuation retirement, Invalid and Compensation pension including adhoc increase was fixed at Rs. 40/- per month. However these orders are not applicable in respect of pension payable to a railway servant on absorption in Public Sector Undertaking a or Autonomous Bodies etc. (F (E) III 70 PN 1/9 dated 02.05.1970 and F (E) III 76 PM 1/19 dated 19.10.1976) 9.Scope of orders fixing minimum pension of Rs. 40/- per month clarified. (Letter No. F (E) III 70 PN 1/9 dated 03.07.1971) 10.Benefit of commutation allowed on the difference between the original pension and the enhanced pension fixed because of a portion of Dearness Allowance treated as Dearness Pay. (Letter No. F (E) III 70 PN 1/28 dated 21.10.1971) 11.Pension including Compassionate Allowance shall not be reduced below the minimum permissible pension of Rs. 40/- per month. (Letter No. F (E) III 70 PN 1/16 dated 01.04.1972 & F (E) III 75 PN 1/19 dated 27.03.1976) 12.With effect from 01.01.1973: – Gratuity shall be payable at the rate of 16.1/2 months emoluments as against 15 months emoluments; Maximum qualifying service for determining pension raised from 60 completed six monthly periods to 66 six monthly periods and the Invalid pension shall not be less than the amount of the family pension payable to the family of the deceased railway servant. (Letter No. F (E) III 74 PN 1/3 dated 02.01.1974) 13.The recommendation of the Third Pay Commission for grant of relief on pension to Class II. III and IV Railway servants retiring on and after 01.01.1973 was accepted. (Letter No. PC III/73/PN/3 dated 05.04.1974) 14.Relief on pension was also granted to Pre 01.01.1973 pensioners. (Letter No. F (E) III 73 PN1/17 dated 15.05.1974) 15.Relief on pension was granted to Class I Officers. (Letter No. PC III 73 PN/3 dated 18.07.1974) 16.Where the railway servant opted for the Railway Services (Revised Pay) Rules 1973 from a date subsequent to 01.01.1973 dearness pay, dearness allowance and the interim relief as in force on 31.12.1972 and drawn till the date the railway servant opted for the revised scale at was treated as emoluments for pensionary purposes. (Letter No. PC III 73/PN/3 dated 09.09.1974) 17.Clarification was issued that relief on pension is admissible on Compassionate Allowance. (Letter No. F (E) III 73 PN 1/17 dated 02.02.1976) 18.In the case of railway pensioner drawing another pension from the State Government, the relief on Railway pension shall be paid on the amount of pension as sanctioned by the Railway. The railway will have no objection if the State Government also pays the relief on the pension sanctioned by the State Government. (Letter No. F (E) III 74 PN1/16 dated 27.02.1976) 19.Rule 2534/R-II and Para 315 of Manual of Railway Pension Rules permitting reduction in pension because of unsatisfactory service record modified. (Letter No. F (E) III PN1/21 dated 10.2.1978) 20.The payment of provisional pension to the retiring railway servants against whom departmental or judicial proceedings had been instituted or continued after retirement is mandatory. (Letter No. F (E) III 78 PM 1/11 dated 17.05.1978) 21.Order relating to relief and adhoc relief on pension to the retiring railway servants were consolidated and the relief was to be granted as a percentage of pay linked with every increase in the cost of living. No relief shall be granted when a pensioner is employed in Public Sector Undertakings, Autonomous Bodies, and Banks or paid from Local Funds etc. (Letter No. P (C) III 76 PN 1/3 dated 25.05.1978) 22.In respect of railway servants retiring on and after 31.03.1979 slab system was introduced under the Liberalisation of Pension Formula. The maximum pension alongwith relief was raised to Rs. 1500/- per month as against the maximum pension of Rs. 1000/-. (Letter No. F (E) III/797PNlA dated 01.06.1979) 23.Rules 2534, 2809. 2815, 2303, 2308/A and Form 30-D in Appendix XIII of the Indian Railway Establishment Code Vol. II authorising the competent authority to reduce pensionary benefits on grounds of unsatisfactory service record deleted. (Letter No. F (E) III 80 PN 1/19 dated 18.11.1980) 24.Railway servants on retirement from service on attaining the age of superannuation or on being declared to be permanently incapacitated for further service by the appropriate authority after he has rendered temporary service of not less than 20 years allowed pension, gratuity and family pension. Hitherto, pension was admissible only to a permanent railway servant. These orders were made applicable to railway servants who were in service on 31.02.1980. (Letter No. F (E) III 78 PN 1/3 dated 21.12.1981) 25.The upper ceiling limit of DCRG payable was raised from Rs. 30,000/- to Rs. 36,000/-. This was payable to those railway servants who became eligible for gratuity on or after 31.01.1982. (Letter No. F (E) III 82 PN 1/3 dated 28.04.1982) 26.Additional dearness allowance treated as pay for pensionary benefits subject to a minimum of Rs. 42/- and maximum of Rs. 363/- per month depending upon the pay of the railway servant. This benefit was applicable to those who retired on or after 31.01.1982. (Letter No. PC III 82/DP/3 dated 30.04.1982) 27. Minimum amount of pension/family pension including relief thereon was stepped up to Rs. 150/- and Rs. 140/- respectively. This benefit was allowed in respect of pension falling due on 01.04.1982 or thereafter. (Letter No. F(E)III 82 PN 1/4 dated 03.06.1983) 28. The amount of pension and family pension including relief thereon was further stepped up to Rs. 160/- and Rs.150/- per month respectively for pensions falling due on 01.04.1983 and thereafter. (Letter No. F (E) III 82 PN 1/4 dated 07.08.1982) 29.In calculating the length of qualifying service, a fraction of a year equal to three months and above be treated as completed one half year and reckoned as qualifying service for determining the amount of pension. (Letter No. F (E) III 79 PN 1/10 dt. 25.08.1983) 30. Notice of voluntary retirement under Rule 2046 (i) (FR 56 (m) -R-11 can be withdrawn by a railway servant before his intended date of retirement. (Letter No. E (P&A) I-83/RT-11 dated 03.11.1983) 31. Arrears of pension on the death of a pensioner are payable to his nominee. Railway servant at the time of retirement may submit nomination. Pensioners were also given six months time to file their nominations. (Letter No. F (E) III 83 PN 1/25 dated 21.11.1983, 03.09.1984 and 26.02.1986) 32.As a result of Supreme Court judgement benefit of Liberalised Pension Formula was extended to all pensioners who were in receipt of superannuation, retiring Compensation and Invalid Pension as Compassionate Allowance on 01.04.1979. The said formula provided for computation of average emoluments on the basis of emoluments drawn during the last 10 months (b) determination of pension with reference to 33 years qualifying service and the maximum pension restricted to Rs.1500/- per month as well as application of slab system in computing the pension from the average emoluments. (Letters No. F (E) III PN 1/8 dated 29.11.1983, 08.05,1984 and 06.03.1986) 33.In the case of running staff retiring on and after 01.08.1981, 55{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} of pay element allowed to be counted as emoluments for retirement purposes. (Letter No. E (P&A) II-82/RS-7 dated 05.06.1984) 34.In respect of railway servants retiring on and after 31.3.1985, entire additional dearness allowance and adhoc dearness allowance (linked to average index level 568) treated as dearness pay for retirement benefits. The ceiling on the amount of pension was also lifted. (Letter No. PC III 85/DP/1 dated 17.05.1985, 05.07.1985, 04.10.1985 and19.02.1986) 35.The voluntary retirement under Para 620 of Manual of Pension Rules i.e. after 30 years qualifying shall not be applicable to those who are on assignment to ITDC, posted abroad in foreign-based posts of the Government and those who are on specified assignment to foreign Governments. (Letter No. F (E) III 85 PN 1/21 dated 19.09.1985) 36.The ceiling limit of pension plus relief in the case of a pensioner who retired before 31.03.1979 shall be the same as in the case of a pensioner who retired after 31.03.1979. (Letter No. F (E) III 65 PN 1/32 dated 21.01.1986) 37.With effect from 01.01.1986, the minimum pension (superannuation/retiring/-invalid/Compensation) or family pension fixed at Rs. 375/- per month. (F (E) III 87 PN 1/6 dated 09.03.1987) 38.Pension shall be calculated at 50{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} of average emoluments in all cases subject to a minimum of Rs. 375/- and a maximum of Rs. 4500/- per month w.e.f. 01.01.1986. (Letter No. PC IV/87/Iap/PN/l dated 15.04.1987, and 08.01.1988, F (E) III 91 PN 1/16 dated 22.11.1991) 39.With effect from 28.10.1987, the benefit of added years of service under Rule 2423-A/R-II shall be admissible to those who retired from service or post after 31.03.1960. (Letter No. F (E) III 87 PN 1/21 dated 04.12.1987, F (E) III/92/PN 1/8 dated 20.4.1992) 40. Families of persons who retired prior to 01.01.1986 with not less than 10 years temporary service and were not eligible for pension were made eligible to the grant of family pension. (Letter No. F (E) III 86 PN 1/4 dated 02.03.1988) 41.Pensioner is required to furnish unemployment or employment/re-employment certificate once in a year i.e. in the month of November each year. Until such certificate is furnished, pension for the month of November and onward shall not be disbursed. (Letter No. F (E) III/88/PN 1/21 dated 09.08.1988) Part III (B) GRATUITY The following orders relating to Gratuity were issued from time to time. 2.The provisions regarding eligibility of DCRG, amount admissible and the persons entitled to receive the DCRG etc.was given in the pension rules which were circulated at the time of introduction of the pension scheme on the Railways vide letter No. F (P) 50 RT1/6 dated 16.11.1957. 3.Permanent railway servants are required to make nomination for payment of DCRG. (Letter No. F (P) 58 PN 1/5 III dated 31.10.1958, F (P) 59 PN 1/1 dated 17.02.1960) 4.Pensioner after retirement is not permitted to make nomination for payment of DCRG. (Letter No. F (P) 58 PN 1/5 dated 10.02.1959) 5.Where the amount of ordinary gratuity/pension together with the DCRG and the commuted portion of pension, if any, were less than 12 times of the emoluments, residual gratuity making good the deficiency between the amount received and 12 times the emoluments be granted provided the railway servant had died within 5 years from the date of his retirement. (Letter No. F (P) 58 PN 1/5 IV dated 28.05.1959) 6. Revised forms for admissibility of DCRG/Residual gratuity and family pension for the family of the deceased railway servant were introduced separately where nomination existed and those cases where no nomination existed. (Letter No. F (P) 58 PN 1/5 V dated 06.06.1959) 7.Terminal gratuity is paid to a temporary railway servant who dies while in service or retires on superannuation, medical invalidation or is discharged from service on account of reduction in establishment. The scale and the ceiling limit for grant of service gratuity/death gratuity are indicated in the following orders. (Letters No. PC 60 RB-8/1 dated 31.10.1960, PC 60 RB-2/3 dated 08.11.1960, F (P) 62 PN-1/4 dated 12.01.1962 and F (P) 66 PN 1-21 dated 31.5.1967) 8.Anticipatory DCRG based on continuous temporary and permanent service may be paid to the extent of not more than 3/4th of the amount of gratuity to the pensioner if it is anticipated that gratuity cannot be finally assessed before the retirement of the railway servant. Similarly, payment of appropriate proportion of the DCRG may also be authorised to the nominee or the legal heirs of the deceased railway servant. (Letters No. F (P) 61 PN-1/10 dated 14.04.1961and F (P) CSR 1/1 dated 24.09.1963) 9.Personal staff of Ministers and Deputy Ministers appointed at the discretion of the Minister/Deputy Minister and who on the date of their appointment are not Government servants are eligible to the payment of DCRG and family pension as admissible to the temporary employees. (Letter No. F (P) 64 PN 1/22 dated 27.07.1961) 10. Invalid gratuity/pension is payable to a railway servant who is physically or mentally incapacitated by the medical authority for performing his duties. Similarly, if a railway servant feels that he is not in a fit state of health to discharge his duties he may apply to the appropriate authority for retirement for grant of Invalid pension and gratuity. (Letter No. F (P) 62 PN 1/19 pt.1 dated 26.10.1964 & 07.11.1964 11. If the amount of anticipatory gratuity paid happens to be more than the amount due upon completion of the inquiries, the gratuitant shall not be required to refund any excess paid to him except as provided in Chapter XXVI-RII. (Letter No. F (P) 65 PN 1/3 dated 18.02.1965) 12.Clarification issued that for eligibility to the grant of DCRG equal to two months emoluments payable to a person who dies during the first year of his service, the expression “service” means qualifying service and not service. (Letter No. F (P) 65 PN 1/33 dated 18.03.1966) 13.The amount of gratuity payable is rounded off to the next higher rupee. (Letter No. F (P) 66 PN 1/13 dated 17.06.1966) 14.Adopted/step children are eligible to be included in the term ‘family’ for receiving terminal/death gratuity. The term ‘father and mother’ shall also include adoptive parents in case of individuals whose personal law permits such adoption. The order of preference of family members eligible to the payment of gratuity is given in the orders. (Letter No. F (P) 64 PN 1/42 dated 22.06.1966) 15.The term ‘government dues’, which can be deducted from the DCRG, do not include dues payable by a railway servant to an autonomous organization white on deputation. Such dues however can be recovered from the DCRG with the express consent of the railway servant. (Letter No. F (E) III 67 PN 1/24 dated 28.02.1968) 16.With effect from 01.12.1968, a portion of dearness allowance was treated as pay for determining pension and gratuity. (Letter No. PC 68 DA 1/4 dated 24.01.1969, F(E) 69 PF 1/5 dated 24.09.1969, 02.12.1969, 16.03.1970, 09.07.1970, F(E)III 70 PN 1/8 dated 06.10.1970 F(E)III 70 PN 1/28 dated 21.11.1970 and F (E) III 69 PF 1/31 dated 16.03.1970) 17. Average pay for reckoning terminal/death gratuity for temporary railway servants determined based on last 12 months pay as laid down in Rule 2545-RII. (Letter No. F (E) III 69 PN 1/32 dated 30.12.1969) 18.With effect from 22.07.1977, no deduction shall be made from the DCRG as contribution towards family pension as was required under the Family Pension Scheme 1964. (Letter No. F (E) III 76 PN 1/23 dated 06.10.1977) 19. In respect of railway servant who retired on and after 30.09.1977, a portion of Dearness Allowance was treated as Dearness Pay for retirement benefits. In the case of officers drawing pay above Rs. 2180 and upto Rs. 2650/- the dearness allowance treated as dearness pay ranged from Rs. 50/- to Rs. 220/-. (Letters No. PC III 79/DP/1 dated 11.06.1979, 07.08.1979, 30.08.1979, 24.11.1979 & 22.02.1980 and PC III 86/DP/2 dated 15.10.1986) 20. The gratuity shall be calculated on the last pay drawn and not based on average emoluments. Appropriate dearness pay shall also be taken into account for calculating the gratuity. (Letter No. PCIII/79/DP/1 dated 26.09.1979) 21.Interest allowed on delayed payment of gratuity at the rate of 5{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} per annum for the period beyond three months after the gratuity becomes due to be paid till the month preceding the month in which the payment is actually made. Interest shall be allowed only where the payment of DCRG is delayed because of administrative lapses or for reasons beyond the control of the railway servant. With effect from 28.07.1984, the rate of interest on delayed payment of DCRG was enhanced from 5{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} to 7{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} it the payment has been delayed beyond three months and upto one year and at the rate of 10{459fecfca4475f09f90d8e5f2511a3c5c1949f070046c1e8cc6bde8835d5da4a} beyond one year. (Letter No. F (E) III PN 1/15 dated 03.09.1979,14.09.1984, 23.01.1987 and 15.04.1991) 22.Where disciplinary or judicial proceedings are pending against a railway servant on the date of retirement, no gratuity is paid until the conclusion of the proceedings and the issue of orders thereon. On conclusion of the proceedings, interest on delayed payment of DCRG may be paid if the railway servant is fully exonerated. The gratuity shall be deemed to have fallen due for payment on the day following the date of retirement. (Letter No. F (E) III 79/PN 1/15 dated 25.05.1983 and F (E) III/79/PN1/15 15.04.1991) 23.General Managers delegated powers to sanction interest on delayed payment of DCRG. (Letter No. F (E) III 79 PN 1/15 dated 23.01.1987) 24.With effect from 01.01.1973, the maximum limit of DCRG was raised from 15 months emoluments to 16½ months emoluments. (Letter No. PC 111/73 PN/3 dated 02.01.1974) 25. The day of death as per extant Rules is regarded as a day of duty. In view of this, the recommendation of the third Pay Commission in regard to DCRG as contained in Board’s letter dated 02.01.1974 is applicable to railway servants who die or may die on and after 31.12.1972. The recommendations of the Commission otherwise were applicable to those who retired from service or died on or after 01.01.1973. (Letter No. PCIII/73/PN/3-II dated 07.04.1975) 26.The benefit of enhanced commutation on revised pension was allowed to persons who retired on and after 01.01.1973 but before issue of orders implementing the recommendations of the III Pay Commission liberalising DCRG and Pension. (Letter No. PCIII/73 PN/3-1 dated 07.04.1975) 27.In respect of railway servants retiring on and after 31.03.1985, upper ceiling limit of gratuity payable was enhanced from Rs. 36,000/- to 50,000/-. (Letter No. F (E) III 82 PN 1/3 dated 17.05.1985) 28.With effect from 12.02.1985, the amount of DCRG as also the commuted value of pension as finally calculated shall be rounded off to the next higher rupee. (Letter No. F (E) III 86 PN 1/3 dated 04.02.1986) 29.The service gratuity for qualifying service of less than 10 years shall be calculated at a uniform rate of half months emoluments for every completed six monthly period of service. (Letter No. PC-IV/87/Imp/PN 1 dated 15.04.1987) 30.The President has the right of withholding a pension or gratuity or both, either in full or in part or withdrawing a pension in full or in part, whether permanently or for a specified period and of ordering recovery from pension or gratuity of the whole part of any pecuniary loss caused to the Government, if, in any departmental or judicial proceeding the pensioner is found guilty of grave mis-conduct or negligence during the period of his service, including service rendered upon reemployment after retirement. Here the term pension includes gratuity. (Ref.: F (E) III/91/PN1/29 dated 16.12.1991 and F (E) III/88/LE1/1 dated 07.08.1989)
