IREC Rule No.942(A): Transfer Of Balances In Other Provident Funds To The State Railway Provident Fund

942(A).Transfer Of Balances In Other Provident Funds To The State Railway Provident Fund:-

If an employee of the Central Government, a State Government or a body corporate owned or controlled by Government or an autonomous organization registered under the Societies Registration Act, 1860, who is a subscriber to any other Government Provident Fund / Provident Fund administered by a body corporate owned or controlled by Government or an autonomous organization registered under the Societies Registration Act, 1860 is permanently transferred to a post under the administrative control of the Ministry of Railways (Railway Board), except one who is appointed on contract or one who has retired from service and is subsequently re-employed with or without a break in service, the accumulations in his old  Provident Fund shall be disposed of in the following manner;

(1)  In the case of a Central Government employee;

(a)  If he was subscribing to a non-contributory Provident Fund the amount of his own subscriptions together with interest thereon shall be credited to his account  in the State Railway Provident Fund (Non-contributory);

 (b) If he was subscribing to a contributory provident fund;

(i)   The amount of his own subscription together with interest thereon shall be credited to his account in the State Railway Provident Fund (Non-contributory);

(ii)  The amount of Government contribution together with interest thereon shall be resumed by his previous Ministry / Department. The liability for Pension including gratuity will be borne in full by the Department to which the Government servant belongs at the time of retirement;

(iii)   The employee shall, thereupon, be entitled to count towards pensionary benefits qualifying service as verified and rendered prior to the date  of  permanent transfer to the extent permissible under the relevant pension rules.

Note:     This sub-clause is also applicable in the case of Civilians paid from Defence Service Estimates including Ordnance Factory Personnel.

(2)  In the case of a State Government employee;

(a)  If he was subscribing to a non-contributory provident fund, the amount of his own subscriptions together with interest thereon shall, with the consent of that Government, be credited to his account in the State Railway Provident Fund (non-Contributory);

(b)   If he was subscribing to a contributory provident fund;

(i)   The amount of his own subscriptions together with interest thereon shall, with the consent of the other Government, be credited to his account in the State Railway Provident Fund (non-contributory); and

(ii)    The amount of Government contribution with interest thereon shall, with the consent of the other Government, be credited to Railway Revenues and the employee shall be entitled to count towards pensionary benefits, that period of his previous service during which he had subscribed to the contributory provident fund. If, however, the state Government concerned is willing to bear the proportionate liability on service share basis taking into account the entire service under them, the Government contribution for such service credited by them shall be resumed by them.

(3)  In the case of an employee of a body corporate owned or controlled by Government or an autonomous organization registered under the Societies Registration Act, 1860, the amount of his own subscriptions and the employer’s contribution, if any, together with interest thereon shall with the consent of that body / organization, be transferred and credited to his Account in the State Provident Fund (non-contributory).

Note-1: This rule is/not applicable in the case of temporary officers appointed to unclassified gazetted service on the Indian Railways. On absorption in the permanent cadre of the Railways, the cases of such of these officers as hold a lien on a post under the Central or the State Government will be considered on merits by the Railway Board.  

Note-2: The provisions of clauses (a) and (b) of sub-rules (1) and (2) apply also to cases of resignations from service .under the Central Government or a State Government to take up Railway service without any break and with proper permission of the former employer. In cases where there has been a break in service it should be limited to joining time allowed on transfer to join the new post. The same shall hold good in cases of retrenchment followed by immediate employment under the Railways.

In such cases the amount of Government contribution together with interest thereon, shall also be credited to the Subscriber’s State Railway Provident Fund account like his own subscriptions as referred to in clause (b) of these Sub-rules.