Retirement: RBE No.172/2004 – SVRS for surplus

No.E(P&A)I-2002/RT-1, dated 04.08.2004

Sub: Special Voluntary Retirement Scheme for Surplus Railway Employees.

1. The Special Voluntary Retirement Scheme introduced by the Department of Personnel & Training vide their OM No.25013/6/2001 Estt.(A), dated 28.02.2002 for Government employees declared surplus, was under consideration of the Ministry of Railways for quite some time. The president is pleased to introduce a similar Special Voluntary Retirement Scheme (SVRS) for permanent Group ‘C’ and ‘D’ employees of the Railways who have been declared surplus (medically decategorised or otherwise) and placed in a supernumerary post and who cannot be redeployed within the Railway/ Production Unit and have more than five years of residual service, subject to the following stipulations:-

(a) Employees would be eligible to give notice for Special Voluntary Retirement Scheme after a period of one year from the date he/she is declared surplus and placed in a supernumerary post.

(b) Railway/ Production Unit would be reckoned as the unit for the purpose of providing alternative employment.

(c) CPO of the Railway/ Production Unit would certify non-availability of avenue of alternative employment, which would constitute a precondition for acceptance of the Special Voluntary Retirement application of the employee.

2. The features of the Special Voluntary Retirement Scheme are as under:-

(i) Only those employees, having more than 5 year of residual service in the above mentioned categories may opt for the Scheme.

(ii) An optee of Special VRS will be entitled to receive an ex-gratia amount equal to basic pay plus dearness allowance for the number of days worked out on the basis of length of service @ 35 days for each completed year and 25 days for each remaining year. For any part of a year, the number of days, for ex-gratia amount, will be worked out on the basis of 365 days in a year. The ex-gratia amount will be further subject to the following conditions:-

(a) Total number of years to be counted for payment of ex-gratia will not exceed 33 years;

(b) No weightage of additional service will be given for the purpose of calculation of ex-gratia;

(c) The ex-gratia will be subject to a minimum of Rs.25,000/- or 250 days emoluments, whichever is higher;

(d) The ex-gratia amount should not exceed the sum of the basic pay plus DA that the employee would draw at the prevailing level for the balance of the period of service left before superannuation;

(e) The ex-gratia amount will be paid in lump-sum;

(f) The ex-gratia amount upto Rs.5.00 lakhs will be exempted from Income Тax.

(iii) A weightage of five years to the qualifying service shall be given under Railway Services (Pension) Rules, 1993 to such permanent surplus Railway employees and medically decategorised employees who have rendered a minimum of 15 years of qualifying service on the date they are declared surplus/ medically decategorised. However, as provided in Rule 68 of Railway Services (Pension) Rules, 1993 the qualifying length of service after taking into account the aforesaid weightage should not be more than the service he/she would have rendered had he/she retired on the date his/her superannuation;

(iv) Encashment of unutilised Leave on Average Pay accumulated on the date of relief as per the Railway Services (Liberalized Leave) Rules, 1949;

(v) Payment of savings element with interest in the Railway Employees Group Insurance Scheme as per rules;

(vi) TA/DA as on retirement for self and family for settling anywhere in India as per Travelling Allowance Rules.

3. Payment of ex-gratia to the Railway employees declared surplus/ medically decategorised and opting for the Special VRS will be over and above the normal retirement entitlement under Railway Services (Pension) Rules, 1993.

4. The order of voluntary retirement in each case should clearly stipulate that the surplus/ supernumerary post held by the retiring incumbent will stand abolished from the date of his/her voluntary retirement.

5. The permanent Group ‘C’ and ‘D’ Railway employees can exercise the option for SVRS, within three months, after a period of one year from the date he/she has been declared surplus (medically decategorised or otherwise) and placed in a supernumerary post. Employees who have already been declared surplus (medically decategorised or otherwise) prior to issue of these instructions can also exercise the option for SVRS within a period of three months from the date of issue of this letter, provided they have been working against supernumerary post for more than one year.

6. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

7. All the Railways/ Production Units are requested to give wide publicity to this scheme through Railway gazettes, Notice Boards etc.

8. Kindly acknowledge receipt.

Download Railway Board Circular RBE No.172/2004

Forward reference ⇒ RBE No.121/2025,