Pension Rule No.24: Counting Of Service On Contract

24.  Counting Of Service On Contract:-

(1)   A person who is initially engaged by the railways on a contract and is subsequently appointed to the same or another post in a substantive capacity, without a break in service, such contract period of service shall be treated like any other permanent service in the railway and be taken into account for calculating for the pensionary benefits, subject to the conditions laid down in these rules; (1) Provided that

(i)    The period of contract service, during which the Contract officer did not subscribe to the State Railway Provident Fund (Contributory), shall count to the extent indicated above, if during such period, the Railway servant concerned did not any inflated rates of pay by reason of absence of any retirement benefits;

(ii)    If the railway servant concerned has subscribed to the State Railway Provident Fund (Contributory) during a period of service, he shall have the option either-

(a) To refund the Government contribution in the Provident Fund together with interest there-on, and Special Contribution to Provident Fund, if any, for the period in question and to count the contract service for pensionary benefits to the extent indicated above, or

(b) To retain the Government contribution to the Provident Fund with interest thereon including any other compensation and Special contribution to Provident Fund, if any, and not to count the period of contract service in question for pensionary benefits.

(2)   The option, referred to in sub-clause (a) or sub-clause (b) of clause (ii) of sub-rule (1), shall be exercised within three months of the railway servant concerned in a substantive post and if he is on leave on that date, within three months of his return from leave, whichever is later.

(3)   If no option is received from the railway servant within the period referred to in sub-rule (2), he shall be deemed to have opted for retention of monetary benefits referred to in sub-rule (2), he shall be deemed to have opted for retention of monetary benefits referred to in sub-clause (b) of clause (ii) of sub-rule (1).

(4)   Where a railway servant (on contract basis) who was admitted to the State Railway Contributory Provident Fund opts for the alternative in sub-clause (1) above, the amount of Government contribution together with interest thereon including other compensation standing to his credit in the State Railway Provident Fund (Contributory) and the Special Contribution to the Provident Fund, if any, shall be surrendered and such amount shall be credited to the Consolidates Fund of India.

Provided that in a case where the Government contribution and the Special contribution, he shall be required to refund the amount received by him together with compound interest on the amount actually received from the date(s) of payment to the date of final refund, at the rate which would have been applicable to the Government contribution, if that amount would have remained in the fund and earned interest, in case where the railway servant dies before the entire amount is refunded, the amount which remains to be refunded shall be adjusted against the death gratuity which may become payable to the family of such railway servant.