IREC Rule No.942: Circumstances In Which Accumulations Are Payable

942.  Circumstances In Which Accumulations Are Payable:-

(1)   When a subscriber quits railway service, the amount standing to his credit in the fund, shall, subject to the provisions of sub-rule (2) below and Rule 944, become payable to him.

Note: A subscriber who is granted leave preparatory to retirement under Rule 540 shall be deemed to have quit service on the date of compulsory retirement or date of the expiry of the extension of service, if any, where extension, as such, has been granted to him.

(2)   If a subscriber, other than one who is appointed on contract or one who has retired and is subsequently re-employed with or without a break in service, is permanently transferred without any break from Railway service to any other service under the  Central Govt., a State Government or is absorbed permanently in a body corporate, owned or controlled by Government or an autonomous organization registered under the Societies Registration Act, 1860, he shall cease to subscribe to the fund and the disposal  of the accumulations in his account shall be made in the following manner;

(i)   If he is transferred to a post under the Central Government,

(a)  The amount of his own subscription together with interest thereon shall be transferred to his account in the Provident Fund administered by the Ministry / Department concerned;

(b)  The amount of Government contribution, if any, together with interest thereon may be resumed and credited to Railway Revenues. The liability for pension including Gratuity will be borne in full by the Department to which the government servant permanently belongs at the time of retirement. If in any case the subscriber is permitted by his new employers to continue to be governed by the rules of a contributory provident fund, the amount of Government contribution together with interest thereon shall also be transferred to his account in the provident fund administered by that Ministry / Department.

Note: This clause is also applicable in the case of Railway employee transferred to civilian posts paid from Defence Services Estimates Including Ordnance Factories.

(ii)   If he is transferred to a post under a State Government the amount of his subscription together with interest thereon shall be transferred with the consent of that Government, to his account in the provident fund administered by that Government. The Government contribution, if any, together with interest thereon shall be resumed to the Railway Revenues or transferred to the State Government according as the proportionate liability for retirement benefits in respect of railway service is mutually agreed to be borne by the railway or State Government.

(iii)   If he is absorbed in the service under a body corporate, owned or controlled by Government or an autonomous organization registered under the Societies Registration Act, 1860.

(a)  The amount of his own subscription together with interest thereon shall be transferred, with the consent of that body / organization, to his new Provident Fund Account under that body / organization.

(b)  The amount of Government contribution, if any, due to him on the date of his permanent absorption in that body / organization together with the interest thereon shall also be transferred, with the consent of that body / organization to his Provident Fund Account under that body / organization.

Note: The provision of sub-rule (2) above applies also to cases of resignation from Railway service to take up appointment under the Central or State Government or a body corporate or an autonomous organization, registered under the Societies Registration Act, 1860, without any break and with proper permission of the Railway Administration except that in the case of persons governed by the Contributory Provident Fund system, the amount of Government contribution together  with interest thereon shall also be transferred to the new Provident Fund in the same way as the subscriber’s own subscriptions. In cases, where there has been a break in service it shall be limited to joining time allowed on transfer to join the new post. The same shall hold good in cases of retrenchments from railway service followed by immediate employment.