Master Circular No.54: Qualifying Service
RBE No.14/1994, No.F(E)III/93/MasterCircular-2(Q.S.), dated 30.03.1994
Sub: Master Circular on qualifying service for pensionary purposes.
1. Further to Master Circular No.1, Master Circular No.2 is enclosed with this letter which brings out instructions issued from time to time on the concept of qualifying service for pensionary purposes.
2. Instructions refer to in the Circular are both old and those current on the subject. For dealing with old cases, the instructions in force, at the relevant time be referred to.
3 If any order current on the subject has been omitted the same should nevertheless be treated as valid and operative.
Qualifying service
1. Qualifying service of a railway servant shell commenc from the date he takes charge of the post to which he is first appointed either substantively or in an officiating capacity.
Provided that, the officiating or temporary service is followed without interruption by substantive appointment in the same or another service or post.
Provided further, that the service rendered before attaining the age of 18 years shall not count except for compensation gratuity.
[Authority: Section-1, Chapter XXIV of IREC, Vol-II (1973 Edition)]
[FR see – Rule 20 of the Railway Services (Pension) Rules
r/w RBE No.100/2000, No.F(E)III/99/PN1/38, dated 23.05.2000]
2. Counting of the period of service paid from contingencies:
The service paid from contingencies shall be allowed to count towards pension at the time of absorption and regular employment subject to conditions specified in the orders.
[Authority: No.F(, dated 22.08.1968]
FR see – Rule 31 of the Railway Services (Pension) Rules
3. Counting of service rendered in autonomous bodies after the option on Railways
Service under the autonomous bodies before joining Railways is allowed to be counted subject to fulfillment of conditions laid down in the orders issued from time to time. (Details given in part ‘D’ of Chapter-I)
4. Counting of service on probation
Service on probation against of post in followed by confirmation in the same or another post shall qualify for pensionary benefits.
[Authority: Rule 2411 of IREC, Vol-II (1973 Edition)]
FR see – Rule 23 of the Railway Services (Pension) Rules
r/w RBE No.100/2000, No.F(E)III/99/PN1/38, dated 23.05.2000]
5. Counting of period spent on training
The service as an apprentice does not count towards qualifying service with effect from 22.12.1983, in the case of Group ‘C’ & ‘D’ employees who are required to undergo departmental training relating to jobs before they are put on regular employment, the period of training shall count towards qualifying service, if the training is followed immediately by an appointment. The benefit is also admissible to such of those Group ‘C’ & ‘D’ employees who are subsequently promoted to gazetted posts.
[Authority: No.F(P)58/PN1/14, dated 03.03.1960
No.F(E)III/79/PN1/20, dated 17.04.1984, 13.10.1986
No.F(E)III/79/PN1/20, dated 09.08.1988 (RBE No.170/1988) &
No.F(E)III/79/PN1/20, dated 14.09.1988 (RBE No.202/1988)
FR see –RBE No.23/1995, No.F(E)III/79/PN1/20, dated 14.03.1995
Rule 23 of the Railway Services (Pension) Rules
r/w RBE No.100/2000, No.F(E)III/99/PN1/38, dated 23.05.2000]
6. Counting of service on contract
A person who is initially engaged on Railways on contract for a specific period and is subsequently appointed to the same or another post in a substantive capacity on a pensionable establishment, the period of engagement on contact service shall count as qualifying service for pensionary benefits subject to the conditions laid down in the orders.
[Authority: No.F(P)59/PN1/6, dated 17.08.1959]
FR see – Rule 24 of the Railway Services (Pension) Rules
7. Counting of military service rendered before Railway employment
A Railway servant who is re-employed in a railway service or post before attaining the age of superannuation and who before such re-employment had rendered Military Service after attaining the age of 18 years may, on his confirmation in a railway service or post opt within a period of one year from the date of joining the railway service or post, either;
(i) To continue to draw the military pension or retain gratuity received on discharge from Military Service, in which case his former service shall not count as qualifying service;
OR
(ii) Ceases to draw his pension and gratuity and count previous Military Service as qualifying service.
[Authority: No.F(E)III/69/PN1/19, dated 28.04.1972
No.F(E)III/77/PN1/19, dated 15.09.1977
No.F(E)III/78/PN1/22, dated 03.11.1978
No.F(E)III/82/PN1/12, dated 10.05.1982 & 09.04.1986
RBE No.164/1988, No.F(E)III/88/PN1/15, dated 02.08.1988
RBE No.06/1995, No.F(E)III/88/PN1/15, dated 25.01.1995
RBE No.101/2001, No.F(E)III/88/PN1/15, dated 28.05.2001]
7.1 Counting of war services rendered before railway service
War services rendered during the war, by itself, or in conjunction with other Military Service shall be allowed to count towards Railway pension to the extent of one half of such service in respect of war candidates appointed permanently to Railway posts against vacancies arising after 31.12.1947. If, however, the whole or any portion of such service satisfies the conditions laid down in the orders relating to the counting of Military Service rendered to in the preceding paragraph, such service shall be allowed to count in full towards Railway pension. The grant of concession as well as the grounds on which the break in service between war/Military Service and the railway service can be condoned is subject to satisfaction of the conditions laid down in the orders issued from time to time.
[Authority: No.F(P)59/CSR1/1, dated 03.03.1959, 14.05.1959, 01.12.1960
No.F(P)59/CSR1/1, dated 07.01.1961, 25.02.1961, 14.12.1961, 26.11.1963]
7.2 A Railway servant, who prior to his appointment in railway service or post against war reserved or other permanent vacancy which arose for direct recruitment before 01.01.1948, has rendered satisfactory paid whole time enlisted or commissioned war service in the Armed Forces of India or in similar Forces of a Commonwealth Country during the period 03.09.1939 to 01.01.1946 which did not earn service pension under the military rules, shall be allowed to count such service including the period of leave on full rate of pay and sick leave taken during such service as qualifying service.
[Authority: No.F(P)59/CSR1/1, dated 03.03.1959]
7.3 Counting of non-regular/purely temporary military service for railway pension
Continuous military (non-regular/purely temporary) service not rendered in conjunction with war service in the Army, Navy and Air Force shall count in full towards Railway pension if such service is followed without interruption by appointment to and eventual confirmation in a pensionable post on the railway. The grant of this concession is subject to the condition laid down in the orders.
[Authority: No.F(P)59/CSR1/1, dated 02.04.1962]
7.4 Counting of Enlisted/Commissioned Military Service
The enlisted/commissioned Military Service shown as non-pensionable/war-time engagement by the Defence Authorities shall count towards Railway pension in the case of persons who are permanently appointed to railway service.
[Authority: No.F(P)64/PN1/48, dated 11.11.1964]
7.5 Form of verification of War/Military Service
Before orders are passed in any case for counting of the War/ Military Service of the individual concerned and the amount of bonus or gratuity in lieu of pension that was paid to him has got to be verified in Form No.27 from the appropriate authorities indicated in the orders.
[Authority: No.F(P)59/CSR1/1, dated 11.05.1961, 27.04.1963]
7.6 Counting of non-pensionable service rendered during World War-II
Non-pensionable service rendered during World War II counts for pensionary benefits.
[Authority: No.F(P)59/CSR-1/1, dated 28.12.1960]
7.7 Definition of term Military Service
The term ‘Military Service’ includes service in Indian Royal Navy and Indian Royal Air Force.
[Authority: No.F(P)58/PN1/2, dated 13.06.1958]
8. Counting of the INA service
INA service is to be treated as ‘War Service’ and the period of break in the two services be treated as qualifying service for Railway pension.
[Authority: No.F(P)59/1/24, dated 27.07.1965
No.F(E)III/73/PN1/4, dated 21.03.1978]
9. Addition to the qualifying service of Ex-railway servants penalized for patriotic activities
Railway servants who took part in the National movement are eligible for additional weightage in qualifying service subject to satisfaction of condition prescribed in the orders.
[Authority: No.F(E)III/73/PN1/4, dated 28.07.1975
No.F(E)III/75/PN1/10 dated 09.03.1976
No.F(E)III/73/PN1/4, dated 23.08.1976
No.F(E)III/78/PN1/19, dated 30.10.1978]
10. Counting of the service rendered under the Central Government
An employee transferred to the Railway from a department of the Central Government was initially treated as on deputation so long as he was not permanently observed on the Railways. On absorption, his previous service in the Civil Department could be counted for pensionary benefits. The pensionary liability for the previous service was to be borne by the concerned Civil Department. Orders specifying conditions for counting of Civil Service for pensionary benefits issued from time to time are as under:
[Authority: No.F(P)60/PN1/25, dated 17/21.05.1962, 19/30.07.1962
No.F(P)62/PN1/21 dated 12.11.1962
No.F(P)65/PN1/27, dated 05.09.1967
No.F(E)JT/1/1, dated 11.10.1965]
10.1 With effect from 01.01.1978, the system of apportionment of liability towards leave salary and pensionary charges was dispensed with between the two Central Government Departments.
[Authority: No.F(E)II/77/IN3/1, dated 15.03.1978]
10.2 Resignation from a post under the Central Government to take up with proper permission another appointment on the Railways and vice versa whether permanent or temporary service is not a resignation from public. In other words, resignation is such circumstances does not entail forfeiture of past service. Resignation, other than technical as described above, dismissal, or removal from service of a Railway servant, however, entails forfeiture of his past service.
[Authority: No.F(P)59/CSR1/11, dated 06.12.1961
No.F(E)III/77/PN1/11, dated 05.08.1977]
11. Condonation of interruption in service
In the absence of a specific indication to the contrary in service book, interruption between two spells of service by a railway servant under Government including Civil Service rendered and paid out of Defence Estimates shall be treated as automatically condoned and the pre-interruption service shall be treated as qualifying service for pension, except where it is otherwise known that the interruption was caused by resignation, dismissal or removal from service or for participation in strike. The period of interruption shall not count as qualifying service.
[Authority: No.F(E)76/PN1/3, dated 08.04.1976
No.F(P)61/CSR1/2, dated 22.06.1961 (Earlier Provison)]
12. Counting of the period of suspension
The period of suspension of railway servant shall not count towards qualifying service, unless the competent authority to pass order under the rules governing such cases expressly declared at the time that it shall count to such extent as that authority may declare.
[Authority: No.F(E)III/76/PN1/3, dated 08.04.1976]
13. Counting of the State Government Service
A temporary State Government Servant on absorption/ appointment in the Railways is allowed to count his temporary service for pensionary benefits by sharing of proportionate pension liability.
13.1 The system of allocation of pensionary liability between the Central and State Government was dispensed with from 01.04.1987.
[Authority: No.F(E)III/68/PN1/47, dated 31.01.1969
No.F(E)III/68/PN1/47, dated 23.09.1969
No.F(E)III/82/PN1/16, dated 13.11.1982
No.F(E)II/87/IN3/1, dated 15.12.1987
RBE No.40/1990, No.F(E)II/87/IN3/1, dated 27.02.1990
RBE No.200/1989, No.F(E)III/89/PN1/3, dated 11.08.1989]
14. Addition to qualifying service for Superannuation Pension in certain circumstances
Railway servant appointed to a service for post after 31st March, 1960 shall be eligible to add to his service qualifying for Superannuation Pension (but not for any other class of pension) the actual period not exceeding 1/4th of the length of his service or the actual period by which his age at the time of recruitment exceeds 25 years or a period of five years whichever is less, subject to satisfaction of the conditions specified in the orders.
14.1 With effect from 28.10.1987, the benefit shall be admissible to all those who retired from service after 31.03.1960.
[Authority: No.PC 60/RB3/3, dated 30.11.1960
No.F(E)III/76/PN1/12, dated 15.11.1976
RBE No.343/1987, No.F(E)III/87/PN1/21, dated 04.12.1987
No.F(E)III/87/PN1/21, dated 18.02.1988
RBE No.56/1992, No.F(E)III/92/PN1/8, dated 20.04.1992]
15. Addition in qualifying service to the Medically De-categorized staff
A medically de-categorized Railway employee refusing to accept the alternative post offered to him is allowed to retire on invalid pension and the service qualifying for retirement benefit be enhanced by an addition of five years provided his continuous service rendered is not less than 15 years.
[Authority: No.PCIII/73/Med/2, dated 24.01.1975]
16. Addition to qualifying service in case of Voluntary Retirement
The scheme of voluntary retirement after completion of 20 years of qualifying service provided for the benefit of if weightage in qualifying service up to 5 year subject to the condition that the total qualifying service shall not in any case exceed 30 years qualifying service (subsequently enhanced to 33 years qualifying service).
[Authority: No.E(P&A)I-77/RT-46, dated 09.11.1977, 29.05.1984
RBE No.219/1985, No.E(P&A)I-77/RT-46, dated 02.08.1985
RBE No.216/1986, No.E(P&A)I-85/FE4-7, dated 07.11.1986]
16.1 Weightage upto 5 years in qualifying service as envisaged in the scheme of voluntary retirement on completion of 20 years qualifying Service, also allowed on retirement on completion of 30 years qualifying service as provided in para 620(i) of MRPR or in case of premature retirement sought by a railway servant under Rule 2046(i) & (I)/R-II. The weightage of 5 years shall not be admissible in case of railway servant who are prematurely retired by the Railway in public interest on completion of 30 years of qualifying service as per para 620(ii) of MRPR as well as Rule 2046(h) and (k)/R-II.
[Authority: No.E(P&A)I-77/RT-46, dated 09.11.1983]
17. Counting of the Extra Ordinary Leave
The competent authority has discretion to allow the extraordinary leave to count for pension (i) if it is taken on medical ground, (ii) if it is taken due to inability of the person concerned to join or re-join duty due to Civil commotion or natural calamity, and (iii) if it is taken on prosecuting higher scientific and Technical studies. The extraordinary leave granted on medical certificate started counting as qualifying service for pension in all cases with effect from 22.09.1973. On or after 18.02.1986, extraordinary leave sanctioned for higher scientific and Technical studies shall count as qualifying service for pension.
[Authority: No.F(P)58/PN1/15, dated 07.02.1959
No.F(P)66/PN1/24, dated 14.06.1968
No.F(P)66/PN1/24, dated 12.02.1969
No.F(E)III/68/PN1/46, dated 30.08.1969
No.F(E)III/71/PN1/28, dated 07.03.1972
No.F(E)III/71/PN1/18, dated 18.05.1972, 11.12.1973
No.F(E)III/73/PN1/19, dated 24.05.1974
RBE No.323/1987, No.F(E)III/86/PN1/21 dated 09.01.1987]
18. Counting of the substitute service for pensionary benefits
Service as substitute shall count for pensionary benefits from the date of completion of 4 months (three months in the case of teachers) continuous service as substitute provided it is followed by absorption in regular Class-III/Class-IV service without break.
[Authority: No.F(E)III/69/PN1/21, dated 22.07.1970
No.F(E)III/81/PN1/12, 20.11.1981]
19. Counting of the service in the United Nations Secretariat and other UN bodies
A Railway servant deputed on Foreign Service for a period of five years or more to the United Nations Secretariat or other United Nations bodies, IMF, IBRD, ADB or the Commonwealth Secretariat may at his discretion pay the FSC (Foreign Service contribution) in respect of his Foreign Service and count such service as qualifying service or avail of the retirement benefits admissible under such organization and not count such as qualifying for railway pension.
[Authority: No.F(E)III/77/PN1/1, dated 18.05.1977]
20. Counting of the period of service of Casual Labour for pensionary benefits
Half of the period of service of Casual Labour (other than casual labour employed on project) after attaining of temporary status on completion of 120 days continuous service if it is followed by absorption is service as the regular Railway employee, counts for pensionary benefits. With effect from 01.01.1981, the benefit has also been extended to project casual labour.
[Authority: No.E(NG)II/78/CL/12, dated 14.10.1980
No.E(NG)II/85/CL/6, dated 28.11.1986
No.E(NG)II/85/CL/6, dated 19.05.1987]
21. Some instances when period of employment is not treated as qualifying service
(i) In a part time capacity,
(ii) At casual market rates,
(iii) As an apprentice except to the extent indicated in Board’s letter No.F(E)III/79/PN1/20, dated 17.04.1984, 27.07.1984, 13.10.1986, 09.08.1986, RBE No.202/1988 (No.F(E)III/79/PN1/20, dated 14.09.1988),
(iv) Is a non-pensionable post,
(v) In a post paid from contingency except as provided in para 409(ii) of MRPR,
(vi) On daily rates basis, and
(vii) On a contract basis except when followed by confirmation without break.
[Ref: Para 407 of MRPR]
22. A qualifying service of 9 years 9 months and above at the time of retirement shall be treated as ten years for the purpose of pension, retirement/death gratuity.
[Authority: RBE No.187/1990, No.F(E)III/90/PN1/34, dated 25.10.1990
RBE No.88/1993, No.F(E)III/90/PN1/34, dated 07.06.1993
RBE No.41/2000, No.F(E)III/2000/Master Circulars/Revision, dated 10.03.2000]
23. The service rendered by the employees in Government/ Railways will not be counted for the purpose of pension on absorption in the Nationalized Banks including the Reserve Bank of India and the State Bank of India and its subsidiaries and other Financial Institutions including Life Insurance Corporation of India, General Insurance Corporation and its subsidiaries. Similarly, the services rendered in these institutions by the employees prior to their appointment in Central Government/ Railways will not count for the purpose of pensionary benefits under Central Government/ Railways. They may seek terminal benefits as admissible from the concerned Nationalized Banks, etc. in which they had rendered service before being appointed in the Central Government/ Railways.
[Authority: RBE No.79/1995, No.F(E)III/95/PN1/4, dated 04.08.1995
RBE No.41/2000, No.F(E)III/2000/Master Circulars/Revision, dated 10.03.2000]