Pension Rule No.53: Pension On Absorption In Or Under A Corporation, Company Or Body
53. Pension On Absorption In Or Under A Corporation, Company Or Body:-
(1) A railway servant who has been permitted to be absorbed in a service or post in or under a corporation or company wholly or substantially owned or controlled by the Central Government or a State Government or in or under a body controlled or financed by the Central Government or a State Government shall be deemed to have retired from service from the date of such absorption and subject to sub-rule (3), he shall be eligible to receive retirement benefits, if any, from such date as may be determined, in accordance with the orders of the Railway applicable to him.
[Authority: RBE No.15/2005, No.F(E)III/2003/PN1/25, 20.01.2005]
Explanation:- Date of absorption shall be-
(i) In case a railway employee joins a corporation or company or body on immediate absorption basis, the date on which he actually joins that corporation or company or body;
(ii) In case a railway employee initially joins a corporation or company or body on foreign service terms by retaining a lien under the railways the date from which his unqualified resignation is accepted by the railways.
(2) The provisions of sub-rule (1) shall also apply to a railway servant who is permitted to be absorbed in joint sector undertakings, wholly under the joint control of Central Government and State Governments/Union Territory Administrations or under the joint control of two or more State Governments/Union Territory Administrations or under the joint control of two or more State Governments or Union Territory Administrations.
(3) Where there is a pension scheme in a body controlled or financed by the Central Government in which a railway servant is absorbed, he shall be entitled to exercise option either to count the service rendered under the railways in that body for pension or to receive retirement benefit for the service rendered under the railways in accordance with the orders issued by the railways. [Authority: RBE No.97/2013, No.2011/F(E)III/1(1)9, 23.09.2013]
Explanation: Body means autonomous body or statutory body.
53A. Conditions for payment of pension on absorption consequent upon conversion of a Railway Department into a public sector undertaking.
(1) On conversion of a Department of the Railway into a public sector undertaking, all railway servants of that Department shall be transferred en-masse to that public sector undertaking, on terms of foreign service without any deputation allowance till such time as they get absorbed in the said undertaking, and such transferred railway servants shall be absorbed in the public sector undertaking with effect from such date as may be notified by the Government.
(2) The Government shall allow the transferred railway servants an option to revert back to the railway or to seek permanent absorption in the public sector undertaking.
(3) The option referred to in sub-rule (2) shall be exercised by every transferred railway servant in such manner and within such period as may be specified by the Government.
(4) The permanent absorption of the railway servants as employees of the public sector undertaking shall take effect from the date on which their options are accepted by the Government and on and from the date of such acceptance, such employees shall cease to be Government servants and they shall be deemed to have retired from railway service.
(5) Upon absorption of railway servants in the public sector undertaking, the posts which they were holding in the Government before such absorption shall stand abolished.
(6) The employees who opt to revert to railway service shall be redeployed through the surplus cell of the Government.
(7) The employees including quasi-permanent and temporary employees but excluding casual labourers, who opt for permanent absorption in the public sector undertaking, shall, on and from the date of absorption, be governed by the rules and regulations or bye-laws of the public sector undertaking.
(8) A permanent railway servant who has been absorbed as an employee of a public sector undertaking and his family shall be eligible for pensionary benefits (including commutation of pension, gratuity, family pension or extraordinary pension), on the basis of combined service rendered by the employee in the Railways and in the public sector undertaking in accordance with the formula for calculation of such pensionary benefits as may be in force at the time of his retirement from the public sector undertaking or his death or at his option, to receive benefits for the service rendered under the Railways in accordance with the orders issued by the Government.
Explanation:- The amount of pension or family pension in respect of the absorbed employee on retirement from the public sector undertaking or on death shall be calculated in the same way as calculated in the case of a railway servant retiring or dying on the same day.
(9) The pension of an employee under sub-rule (8) shall be calculated on fifty per cent of emoluments or average emoluments, whichever is more beneficial to him.
(10) In addition to pension or family pension, as the case may be, the employee who opts for pension on the basis of combined service shall also be eligible to dearness relief as per industrial dearness allowance pattern.
(11) The benefits of pension and family pension shall be available to quasi-permanent and temporary transferred railway servants after they have been confirmed in the public sector undertaking. (12) A permanent railway servant absorbed in a public sector undertaking or a temporary or quasi-permanent railway servant who has been confirmed in a public sector undertaking subsequent to his absorption therein, shall be eligible to seek voluntary retirement after completing ten years of qualifying service with the Government and the public sector undertaking taken together, and such person shall be eligible for pensionary benefits on the basis of qualifying service.
(13) The Government shall create a pension fund in the form of a trust and the pensionary benefits of absorbed employees shall be paid out of such pension fund.
(14) The Member Staff, Railway Board shall be the Chairperson of the Board of Trustees which shall include representatives of the Ministries of Finance, Personnel, Public Grievances and Pensions, Labour, concerned public sector undertaking and their employees and experts in the relevant field to be nominated by the Government.
(15) The procedure and the manner in which pensionary benefits are to be sanctioned and disbursed from the pension fund shall be determined by the Government on the recommendations of the board of trustees.
(16) The Government shall discharge its pensionary liability by paying in lump sum as a onetime payment to the pension fund the pension or service gratuity and retirement gratuity for the service rendered till the date of absorption of the railway servant in the public sector undertaking.
(17) The manner of sharing the financial liability on account of payment of pensionary benefits by the public sector undertaking shall be determined by the Government.
(18) Lump sum amount of the pension shall be determined in accordance with the Table of the values in Appendix to the Railway Services (Commutation of Pension) Rules, 1993.
(19) The public sector undertaking shall make pensionary contribution to the pension fund for the period of service to be rendered by the concerned employees under that undertaking at the rates as may be determined by the board of trustees so that the pension fund shall be self-supporting.
(20) If, for any financial or operational reason, the trust is unable to discharge its liabilities fully from the Pension Fund and the public sector undertaking is also not in a position to meet the shortfall, the Government shall be liable to meet such expenditure and such expenditure shall be debited to either the fund or to the public sector undertaking.
(21) Payments of pensionary benefits of the pensioners of a railway Department on the date of conversion of it into a public sector undertaking shall continue to be the responsibility of the Government and the mechanism for sharing its liabilities on this account shall be determined by the Government.
(22) Upon conversion of a Railway Department into a public sector undertaking:-
(a) The balance of provident fund standing at the credit of the absorbed employees on the date of their absorption in the public sector undertaking shall with the consent of such undertaking, be transferred to the new provident fund account of the employees in such undertaking;
(b) Earned leave and half pay leave at the credit of the employees on the date of absorption shall stand transferred to such undertaking;
(c) The dismissal or removal from service of the public sector undertaking of any employee after his absorption in such undertaking for any subsequent misconduct shall not amount to forfeiture of the retirement benefits for the service rendered under the Railways and in the event of his dismissal or removal or retrenchment, the decisions of the undertaking shall be subject to review by the Ministry of Railways with the undertaking.
(23) In case the Government disinvests its equity in any public sector undertaking to the extent of fifty-one per cent or more, it shall specify adequate safeguards for protecting the interest of the absorbed employees of such public sector undertaking.
(24) The safeguards specified under sub-rule (23) shall include option for voluntary retirement or continued service in the undertaking or voluntary retirement benefits on terms applicable to railway servants or employees of the public sector undertaking as per option of the employees and assured payment of earned pensionary benefits with relaxation in period of qualifying service, as may be decided by the Government.
53B. Conditions for payment of pension on absorption consequent upon conversion of a Railway Department into a Central autonomous body:-
(1) On conversion of a Department of the Railway into an autonomous body, all railway servants of that Department shall be transferred en-masse to that autonomous body on terms of foreign service without any deputation allowance till such time as they get absorbed in the said body and such transferred railway servants shall be absorbed in the autonomous body with effect from such date as may be notified by the Government.
(2) The Government shall allow the transferred railway servants an option to revert back to the Government or to seek permanent absorption in the autonomous body.
(3) The option referred to in sub-rule (2) shall be exercised by every transferred railway servant in such manner and within such period as may be specified by the Government.
(4) The permanent absorption of the railway servants of the autonomous body shall take effect from the date on which their options are accepted by the Government and on and from the date of such acceptance, such employees shall cease to be railway servants and they shall be deemed to have retired from railway service.
(5) Upon absorption of railway servants in the autonomous body, the posts which they were holding in the Government before such absorption shall stand abolished.
(6) The employees who opt to revert to railway service shall be redeployed through the surplus cell of the Government.
(7) The employees including quasi-permanent and temporary employees but excluding casual labourers, who opt for permanent absorption in the autonomous body, shall on and from the date of absorption, be governed by the rules and regulations or bye-laws of the autonomous body.
(8) A permanent railway servant who has been absorbed as an employee of an autonomous body and his family shall be eligible for pensionary benefits (including commutation of pension, gratuity, family pension or extra-ordinary pension), on the basis of combined service rendered by him in the Railways and autonomous body in accordance with the formula for calculation of such pensionary benefits as may be in force at the time of his retirement from the autonomous body or death or at his option, to receive benefits for the service rendered under the Railways in accordance with the orders issued by the Government.
Explanation: The amount of pension or family pension in respect of the absorbed employee on retirement from autonomous body or death shall be calculated in the same way as would be the case with a railway servant retiring or dying on the same day.
(9) The pension of an employee under sub-rule (8) shall be calculated at fifty per cent of emoluments or average emoluments, whichever is more beneficial to him.
(10) In addition to pension or family pension, as the case may be, the absorbed employees who opt for pension on the basis of combined service shall also be eligible to dearness relief as per central dearness allowance pattern.
(11) The benefits of pension and family pension shall be available to quasi- permanent and temporary transferred railway servants after they have been confirmed in the autonomous body.
(12) The Government shall create a pension fund in the form of a trust and the pensionary benefits of absorbed employees shall be paid out of such pension fund.
(13) The Member Staff, Railway Board shall be the Chairperson of the board of trustees which shall include representatives of the Ministries of Finance, Personnel, Public Grievances and Pensions, Labour, concerned autonomous body and their employees and experts in the relevant field to be nominated by the Government.
(14) The procedure and the manner in which pensionary benefits are to be sanctioned and disbursed from the pension fund shall be determined by the Government on the recommendations of the board of trustees.
(15) The Government shall discharge its pensionary liability by paying in lump sum as a onetime payment to the pension fund the pension or service gratuity and retirement gratuity for the service rendered till the date of absorption of the railway servant in the autonomous body.
(16) The manner of sharing the financial liability on account of payment of pensionary benefits by the autonomous body shall be determined by the Government.
(17) Lump sum amount of the pension shall be determined in accordance with the Table of the values in Appendix to the Railway Services (Commutation of Pension) Rules, 1993.
(18) The autonomous body shall make pensionary contribution to the pension fund for the period of service to be rendered by the concerned employees under that body at the rates as may be determined by the Board of Trustees so that the pension fund shall be self-supporting.
(19) If, for any financial operational reason, the trust is unable to discharge its liabilities fully from the pension fund and the autonomous body is also not in a position to meet the shortfall, the Government shall be liable to meet such expenditure and such expenditure shall be debited to either the fund or to the autonomous body, as the case may be.
(20) Payments of pensionary benefits of the pensioners of a Railway Department on the date of conversion of it into an autonomous body shall continue to be the responsibility of the Government and the mechanism for sharing its liabilities on this account shall be determined by the Government.
(21) Upon conversion of a Department of the Railway into an autonomous body.–
(a) The balance of provident fund standing at the credit of the absorbed employees on the date of their absorption in the autonomous body shall, with the consent of such body, be transferred to the new provident fund account of the employees in such body;
(b) Earned leave and half pay leave at the credit of the employees on the date of absorption shall stand transferred to such body;
(c) The dismissal or removal from service of the autonomous body of any employee after his absorption in such body for any subsequent misconduct shall not amount to forfeiture of the retirement benefits for the service rendered under the Railways and in the event of his dismissal or removal or retrenchment, the decisions of the body shall be subject to review by the Ministry of Railways.
(22) In case the Government disinvests its equity in any autonomous body to the extent of fifty-one per cent. or more, it shall specify adequate safeguards for protecting the interest of the absorbed employees of such autonomous body.
(23) The safeguards specified under sub-rule(22) shall include option for voluntary retirement or continued service in the body, as the case may be or voluntary retirement benefits on terms applicable to railway employees or employees of the autonomous body as the case may be or voluntary retirement benefits on terms applicable to railway employees or employees of the autonomous body as per option of the employees, assured payment of earned pensionary benefits with relaxation in period of qualifying service, as may be decided by the Government.
[Authority: RBE No.97/2013, No.2011/F(E)III/1(1)9, 23.09.2013]