RBE No. 14/2020: Charge Allowance – Pre-2016 retirees – Revision of Pension

No.D-43/15/2018-F(E)III, dated 30.01.2020

Sub: Reckoning of Charge Allowance for the purpose of revision of Pension of Pre-2016 retirees in terms of 7th CPC recommendations – reg.

1. Consequent upon the recommendations of 7th CPC, instructions were issued vide Board’s letter No.2016/F(E)III/1(1)/7, dated 10.08.2016 (RBE No. 97/2016) and 22.05.2017 (RBE No. 49/2017), regarding revision of pension/ family pension of pre-2016 pensioners/ family pensioners. A number of references have been received in this office for reckoning of Charge Allowance for the purpose of notional fixation of pay and accordingly revision of pension w.e.f. 01.01.2016.
2. The true nature of Charge Allowance was earlier considered by the Board and it was decided that the charge allowance, which is actually in the nature of pay restricted under FR-35, should be reckoned as ‘Pay’ as defined in Rule 1303(FR-9)(21)(a)(I) R-II/ 6th Edition and as such, it would count as pay for the purpose of pension, gratuity etc. as well as for leave encashment. Accordingly, instructions were issued vide letter No.F(E)III/PN1/26, dated 23.06.1995 (RBE No. 61/1995).
3. The issue has again been examined in Board keeping in view the earlier decision on charge allowance cited in para 2 above and it has been decided as follows:-
(i) Since, Board had already decided to treat the charge allowance as pay restricted under FR-35 and to reckon it as emoluments for pensionary benefits vide letter dated 23.06.1995, the charge allowance may be taken into account for notional fixation of pay for the purpose of revision of pension/ family pension of pre-2016 retirees w.e.f. 01.01.2016 in terms of first formulation as conveyed by Board’s letter No.2016/F(E)III/1(1)/7, dated 22.05.2017 (RBE No. 49/2017).
(ii) Pay fixed in terms of Board’s letter No.PC-VII/2017/I/7/5/8, dated 08.08.2019 (RBE No. 127/2019) w.e.f. 01.07.2017 may also be treated as emoluments in terms of Rule 49 of the Railway Services (Pension) Rules, 1993 for the purpose of fixation of pension.
(iii) Since, Charge Allowance may have been paid w.e.f. 01.01.2016 to 30.06.2017 at old rates which was admissible before 2016, the same may be reckoned for calculation of retirement benefits of employees who retired between the periods from 01.01.2016 to 30.06.2017.
4. Please acknowledge receipt

Download Railway Board Circular RBE No.14/2020

Forward reference ⇒ RBE No.

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