Running Staff: RBE No.201/2000 – Retirement Benefits
No.F(E)III/2000/PN 1/19, dated 21.11.2000
1. In the wake of the decision of the Government in implementation of the judgment of the Supreme Court in Civil Appeal Nos. 4174-82 of 1995 regarding re-computation of retirement benefits of the running staff who had retired from service during the period from 01.01.1973 to 04.12.1988 and also the decision to implement the recommendations of the 5th Central Pay Commission for revision of pension/ family pension of all the retired Railway servants irrespective of their date of retirement, various orders have been issued by the Board in these respects. Subsequent to this, a few references from certain Railway administrations and representations from pensioners Associations, retired running staff etc., have been received, seeking clarifications as to the correct methodology to be adopted for revision of the pension/ family pension in respect of running staff who had retired from service prior to 01.01.1986 and are in receipt of pension/ family pension on 01.01.1996. Accordingly, the position is clarified as in the following paragraphs.
2. First of all, the retirement benefits in respect of running staff, who had retired during the period from 01.01.1973 to 04.12.1988 are to be recomputed as on the date following the date of retirement in terms of Board’s letter No.PC-III/92/CTC/1/2, dated 14.10.1997 (RBE No.135/1997) and 08.07.1999 (RBE No.164/1999). Further revision/ consolidation of the recomputed pension/ family pension should be done as under:-
2.1 The recomputed pension/ family pension of pre 31.03.1979 retirees/ deceased running staff should be revised as per the orders under the Liberalised Pension Formula of 1979 contained in Department of Expenditure O.M. No.F.1(3)-EV/83, dated 22.10.1983 circulated vide Board’s letter No.F(E)II/83/PN 1/8, dated 29.11.1983. The revised pension/ family pension should then be consolidated w.e.f. 01.01.1986 in terms of instructions contained in DOP&PW’s O.M. No.2/1/87/PIC-I, dated 16.04.1987, circulated vide Board’s letter No.PC-VI/87/IMP/PN1, dated 20.04.1987.
2.2 The recomputed pension/ family pension in respect of those running staff who had retired/ died during the period from 31.03.1979 to 31.12.1985 should be consolidated as on 01.01.1986 in terms of DOP&PW’s O.M. dated 16.04.1987 referred to in para 2.1 above.
2.3 In the case of pre-31.03.1979 retirees/ deceased running staff and also of the period from 01.04.1979 to 31.12.1985 the difference in the amount of retirement benefits recomputed in accordance with para 2 above and also the amount of arrears arising out of recomputation of pension/ family pension as on the date following the date of retirement/ death and further revised/ consolidated in terms of sub-paras 2.1 and 2.2 above, should be paid for the period ending 31.12.1995.
2.4 In the case of retirees/ deceased running staff of the period 01.01.1986 to 04.12.1988, the difference in the amount of retirement benefits recomputed in terms of para 2 above and the amount of arrears becoming due on account of recomputed pension/ family pension should be paid for the period ending 31.12.1995.
3. Subsequent to the revision of retirement benefits including pension/ family pension as detailed in para 2 above, the revision of pension/ family pension of pre-01.01.1986 retirees/ deceased running staff in terms of DOP&PW’s OM No.45/86/97/P&PW(A)-III, dated 10.02.1998 circulated vide Board’s letter No.F(E)III/98/PN 1/2, dated 10.03.1998 (RBE No.55/1998) on the basis of the recommendations of the 5th Central Pay Commission and the clarifications thereto dated 29.12.1999 (RBE No.318/1999), should be undertaken. Accordingly, the pay of all such pre-01.01.1986 retirees/ deceased running staff should be re-fixed on notional basis as on 01.01.1986 in the revised IVth CPC scales of pay of the post last held by the Railway servant at the time of retirement/ death on the basis of pay fixation formula prescribed for the running staff vide Board’s letter No. PC-IV/86/FOP/1, dated 07.10.1986 (RBE No.185/1986). The notional pay so arrived as on 01.01.1986 should be treated as average emoluments/ last pay drawn for the purpose of calculation of pension/ family pension as on 01.01.1986 as laid down in para 2 of DOP&PW OM dated 10.02.1998 referred to above and the pension/ family pension should be calculated as on 01.01.1986 as per the pension formula then prescribed.
4. If the pension/ family pension consolidated as on 01.01.1986 in terms of Board’s 20.04.1987 (RBE No.91/1987) orders as detailed in para 2.1 & 2.2 above, happens to be more than the amount of pension/ family pension worked out by notional fixation of pay as on 01.01.1986 in terms of Board’s letter No. F(E)III/98/PN 1/2, dated 10.03.1998 (RBE No.55/1998) and clarification thereto dated 29.12.1999 (RBE No.318/1999) as brought out in para 3 above, the pension/ family pension should not be revised to the disadvantage of the pensioner/ family pensioner. On the other hand, if the pension/ family pension revised as on 01.01.1986 in terms of Board’s 20.04.1987 (RBE No.91/1987) orders works out to be less than the pension/ family pension becoming due on notional fixation of pay as on 01.01.1986 in terms of F(E)III’s letters dated 10.03.1998 (RBE No.55/1998) and 29.12.1999 (RBE No.318/1999), the same may be raised accordingly.
5. Further, the higher amount of pension/ family pension in respect of pre-01.01.1986 retirees/ deceased Railway servants consolidated/ revised as on 01.01.1986 either in terms of F(E)III’s 10.03.1998 (RBE No.55/1998) and 29.12.1999 (RBE No.318/1999) orders or in terms of PC-III’s 14.10.1997 (RBE No.135/1997) and 08.07.1999 (RBE No.164/1999) orders as brought out in para 4 above as also the amount of recomputed pension/ family pension of retirees/ deceased running staff of the period from 01.01.1986 to 04.12.1988 as per para 2.4 above should be consolidated as on 01.01.1996 in terms of Board’s letter No. F(E)II/97/PN 1/23, dated 07.11.1997 (RBE No.143/1997). If the consolidated pension/ family pension is less than 50%/30% of the minimum pay in the revised Vth CPC scales of pay, of the post last held by the retiree/ deceased Railway servant, the same should be raised accordingly as provided for in Board’s letter No. F(E)II/98/PN 1/29, dated 15.11.1999 (RBE No.08/1999) which amount should be treated as basic pension/ family pension w.e.f. 01.01.1996. On the other hand, if the consolidated pension/ family pension is more than 50%/30% of the said minimum pay the same should be treated as the basic pension/ family pension w.e.f. 01.01.1996. Three sample calculations in this regard are enclosed for guidance.
SAMPLE CALCULATION-I
1.0 Date of Retirement: 31.10.1978
2. Last Pay drawn (Scale of pay Rs.425-600): Rs.580
3. Qualifying Service: More than 33 years
4. Average Emoluments reckoned for calculation of Pension:
Pay: 547.36
D.P.: 147.78
R.A.: 410.52 {@ 75%}
Rs.: 1,105.66
5. Pension fixed on 01.11.1978: (1105.66 x 33)/80 = 456.08 = Rs.457
6. Pension revised as per Liberalised Pension Formula: 50% of Rs.1,000 = 500
45% of Rs.105.66= 47.54/547.54 = Rs.548
7. Pension @ 50% w.e.f. 01.01.1986: 552.83 = Rs.553
8. Consolidation w.e.f. 01.01.1986 in terms of 20.04.1987 (RBE No.91/1987) Orders: Rs.1,211 + (553 – 548) = Rs.1,216
9. Consolidated w.e.f. 01.01.1996 in terms of 07.11.1997 (RBE No.143/1997) Orders: Rs.3,675
10. Pay at serial No.2 above fixed notionally w.e.f. 01.01.1986 in IV CPC scale (1,350-2,200) [The Notional Pay is to be treated as average emoluments]:
Basic: 580
D.A.: 1,135.70
I.R.: 145.00
20%: 116.00
Rs.1,976.70 – To be fixed at Rs.2,000
11. Pension admissible on 01.01.1986 = 50% of notional pay of Rs.2,000 = Rs.1,000
Notes:
(I) Since the amount of Pension as on 01.01.1986 revised/ consolidated in terms of serial No.8 above amounts to Rs.1,216, which is more than the notionally revised pension amounting to Rs.1,000 the higher amount of pension of Rs.1,216 should be treated as the basic pension w.e.f. 01.01.1986.
(II) Whereas 50% of the minimum pay in the corresponding revised scale of pay w.e.f. 01.01.1996 (Rs.4,500-7,000) Rs.2,225, which is less than the pension consolidated as on 01.01.1996 vide serial No.9, the higher amount of Rs.3,675 should be treated as the basic pension w.e.f. 01.01.1996.
12. Family pension as on 01.01.1986 @ 20% of Rs.2,000 subject to a minimum of Rs.450 = Rs.450
13. Consolidated as on 01.01.1996: Rs.1,396
14. Addition family pension at the rate of 30% of Rs.2,000 minus Rs.450 = Rs.(600-450) = Rs.150
15. Total family pension as on 01.01.1996: Rs.(150 + 1,396) = 1,546
16. Family pension@ 30% of the minimum pay in the revised scale of pay of Rs.4,500-7,000 = Rs.1,350
Note: Since the amount of Family pension admissible w.e.f. 01.01.1996 as per serial No.16 i.e., Rs.1,350 is less than the amount of revised/ consolidated family pension as per serial No.15, the higher amount of Rs.1,546 should be treated as the basic family pension w.e.f. 01.01.1996.
SAMPLE CALCULATION-II
1. Date of Retirement: 31.12.1984
2. Last Pay drawn (Scale of pay Rs.550-750) Rs.630
3. Qualifying Service: More than 33 years
4. Average emoluments reckoned for calculation of Pension:
Pay = Rs. 624.00
DP = Rs.219.02
ADP = Rs.124.34
IR = Rs.70.00
RA {@ 75%} = Rs.468.00
Rs.1,505.36
5. Pension fixed on 31.12.1984: 50% of Rs.1,000 = Rs.500
45% of Rs.500 =Rs.225
40% of Rs.5.36 = Rs.2.14
=Rs.727.14 (Rs.728)
6. Pension @ 50%: Rs.753
6. Consolidated w.e.f. 01.01.1986 in terms of 20.04.1987 (RBE No.91/1987) Orders: Rs.1,391 + (753-728) = Rs.1,416
7. Consolidated w.e.f. 01.01.1996 in terms of 07.11.1997 (RBE No.143/1997) Orders: Rs.4,271
8. Pay at 2 above fixed notionally w.e.f. 01.01.1986 in IVth CPC scale (1,640-2,900) (The notional pay is to be treated as average emoluments):
BP = Rs.630.00
DA + DP = Rs.1,230.20
IR = Rs.152.00
20% = 126.00
= Rs.2,138.00
To be fixed at Rs.2,180
10. Pension admissible as on 01.01.1986 – 50% of notional pay of Rs.2180 = Rs.1,090
Notes:
(I) Since the pension as on 01.01.1986 revised/ consolidated as per serial No.7 amounts to Rs.1,416, which is more than the amount of notional revised pension vide serial No.10, the higher amount of pension of Rs.1416, should be treated as the basic pension w.e.f. 01.01.1986.
(II) Whereas 50% of minimum pay in the corresponding revised scale of pay w.e.f. 01.01.1996 (Rs.5,500-9,000) is Rs.2750, the consolidated pension as on 01.01.1996 amounting to Rs.4271 which is more than Rs.2750, should be treated as basic pension w.e.f. 01.01.1996.
11. Family pension as on 01.01.1986 @ 20% of Rs.2180 (min. Rs.450: Rs.450
12. Consolidated as on 01.01.1996: Rs.1396
13. Additional family pension (30% of Rs.2180 minus Rs.450: Rs. (654-450)
14. Total family pension as on 01.01.1996: Rs. (1396 + 204) = Rs.1600
15. Family pension @ 30% of minimum of (5,500-9,000): Rs.1650
Note: Since the amount of family pension admissible w.e.f. 01.01.1996 in terms of serial No.15 i.e. Rs.1650 is more than the amount of notionally revised family pension as per serial No.14, i.e. Rs.1600, the higher amount of Rs.1650 should be treated as basic pension w.e.f. 01.01.1996.
SAMPLE CALCULATION-III
1. Date of Retirement: 31.10.1986
2. Last pay drawn: Rs.2,200 in scale (1,400-2,600)
3. Qualifying Service: More than 33 years
4. Average Emoluments: Rs.2,200
5. Pension as on 31.10.1986 = 50% of (2,200 + 1,650 i.e. 75% RA) = Rs.1,925
6. Consolidated as on 01.01.1996 in terms of Board’s 07.11.1997 (RBE No.143/1997) Orders = Rs.5,528
7. 50% of minimum of corresponding Vth CPC scale (Rs.5,000-8,000) = Rs.2,500
Note: Since the amount of consolidated pension as per serial No.6 i.e. Rs.5,528 is more than 50% of the revised Vth CPC scale of pay as in serial No.7 the higher amount of Rs.5,528 should be treated as basic pension w.e.f. 01.01.1996.
8. Family pension as on 31.10.1986 = 15% of Rs.3,850 subject to a min. of Rs.600 = Rs.600
9. Consolidated as on 01.01.1996: Rs.1,838
10. Additional family pension (30% of Rs.3850 minus Rs.600) = Rs. (1,155-600) = Rs.555
11. Total family pension as on 01.01.1996: Rs. (1838 + 555) = Rs.2393
12. 30% of minimum of corresponding Vth CPC scale of pay of Rs.5,000-8,000: Rs.1500
Note: Since the revised family pension as at serial No.11 is Rs.2,393, which is more than 30% of minimum pay in the Vth CPC revised scale of pay i.e. Rs.1,500, the higher amount of Rs.2,393 should be treated as basic family pension w.e.f. 01.01.1996.
Download Railway Board Circular RBE No.201/2000
Forward reference ⇒ RBE No.