Master Circular No.35: Retirement

No.E(P&A)I-2019/RT-10, dated 09.09.2019
Master Circular No.35 (Updated September, 2019) circulated vide No.E(P&A)I-2019/RT-10, 30.09.2019

MC No.35
(Updated September, 2019)

Sub: Retirement.
Ref: Railway Board’s letter No.E(P&A)I-91/RT-2/Master Circular, dated 19.09.1991

1. Presently the instructions on the subject – ‘Retirement of Railway Servants’, issued by Railway Board from time to time are contained in several letters/ circulars. The last Master Circular on the subject was issued vide Board’s letter No.E(P&A)I-91/RT-2/Master Circular, dated 19.09.1991. Railway Board have has now decided to review and consolidate these instructions into a single body as an updated Master Circular, as below, for information and guidance of all concerned.
General
2. Retirement from service means a railway servant ceasing to be in service. The various modes by which the services of a Railway servant may come to an end are:-

(i) Normal retirement on superannuation;
(ii) Retirement due to medical invalidation;
(iii) Premature retirement ordered in the public interest; and
(iv) Premature voluntary retirement on his/her own option.

A – Normal Retirement
3. Every Railway servant barring those mentioned in para 3.1 and 3.2 below shall retire from, service on attaining superannuation i.e. the age of sixty years.

[Ref: Board’s letter No.E(P&A)I-98/RT-6, dated 14.05.1998 (RBE No.103/1998), and
Rule 1801(a) – Indian Railway Establishment Code, Vol-II/1987]

3.1 Lectures of Railway Degree College, Lalaguda, S.C. Railway shall retire from service on attaining the age of 65 years.

[Ref: Board’s letter No.E(P&A)I-2007/RT-8, dated 13.12.2007 (RBE No.161/2007)]

3.2 The age of superannuation of Doctors belonging to IRMS and Dental Doctors under the Ministry of Railways shall be sixty-two (62) years unless they exercise the option of posting to a Clinical post depending upon their expertise and experience, as decided by the Competent Authority in the Ministry of Railways from time to time, in case they desire to continue in their service up to the age of sixty-five (65) years.

[Ref: Board’s letter No.E(P&A)I-2016/RT-16, dated 20.09.2018 (RBE No.144/2018)]

Date of Normal Retirement
4. The date of retirement will be based on the date of birth of the Railway servant as recorded in his/her Service Book/ Service Register and will be as under:-

Date of birth	Date of retirement on attaining 60/ 62/ 65 years of age
1st of a month	Afternoon of the last day of the preceding month.
Any other date of a month	Afternoon of the last day of that month

[Ref: Board’s letter No.PC-III/73/RT/4, dated 18.12.1973, 20.05.1974 and 02.08.1974 and

No.E(P&A)I-2016/RT-16, dated 20.02.2019 (RBE No.30/2019)]

4.1 In other cases of retirement viz., retirement due to medical unfitness or invalidation, premature retirement, voluntary retirement, the provision given in Para 4 above will not apply.
Relinquishment of Charge

5. Retirement from service on attaining the age of superannuation is automatic and in the absence of specific orders to the contrary by the competent authority, a Railway servant must retire on the due date and cannot take advantage of non-receipt of formal orders regarding his/her retirement, relief etc.
It is the responsibility of the Administrative authorities concerned to ensure that the Railway servants under their control retire on the due date on attaining the age of superannuation. The Railway servants, on his/her part, is also required to bring the fact that he/she is attaining the age of superannuation to the notice of the Head of the Office in which he/she is serving and make over charge on the due date to his/her reliever, or to any other Railway servant who may be nominated.

[Ref: Board’s letter No.E(P&A)I-79/EM 1/2, dated 07.05.1979]

5.1 The Administrative Authorities concerned should ensure that the machinery under their control is suitably geared to maintain the personal records of Railway servants up-to-date at all times to guard against any eventuality of retaining a railway servant irregularly, beyond the age of superannuation.

[Ref: Board’s letter No.E(G)79/RT 2/10, dated 03.07.1978]

Relinquishment of Charge when the Date of Retirement Happens to be Holiday
6. The retiring Railway servant should formally relinquish charge of the post/office on the afternoon of the last day of the month in which his/her retirement falls, even if that day happens to be a holiday. Where handing over of cash/ stores/ material is involved, the retiring Railway servant should make over these to the relieving Railway servant or to any other Railway servant nominated by the administration on the close of the previous working day and actually relinquish charge on the last day of the month (which is a holiday) for doing of which his/her physical presence in the office need not be insisted upon.

[Ref: Railway Board’s letter No.PC-III/73/RT/4, dated 06.06.1977]

Retirement of a Railway Servant under Suspension
7. A pensionable Railway servant under suspension should be retired on the due date of superannuation even if the enquiries into the charges, against him/her are still in progress.

7.1 In the case of non-pensionable Railway servants the competent authority will have to take a specific decision in each case, on merits, whether or not to continue in service beyond the age of superannuation, Railway servant under suspension. In arriving at a decision, the considerations indicated below shall be kept in view. Only in those cases where the prospect of a dismissal is nearly certain with the attendant possibility of denying the employee Government’s contribution to Provident Fund, need a railway servant under suspension be retained in service beyond the date of superannuation. In other cases, where dismissals are not likely to result, the railway servants concerned shall be retired on the date of attaining superannuation, subject to withholding of Special contribution to Provident Fund and also postponement of settlement of Government contribution to Provident Fund in terms of Provident Fund Rules, unless there is need for making an exception in any particular case. Departmental proceedings in such cases shall nevertheless be continued and processed to finality expeditiously so that the liabilities established in such proceedings can be adjusted against the Government contribution to Provident Fund held back. While deciding to make exceptions in individual cases for retaining the railway servant beyond the date of superannuation, due regard will have to be paid to the considerations that such employee will have to be paid subsistence allowance during the period of suspension and full pay and allowances to which they would become entitled in the event of their being completely exonerated of the charges against them, and that deductions can be made from the Government Contribution to Provident Fund only in terms of Provident Fund Rules.

[Ref: Rule 1801(c) read with Board’s orders under
Indian Railway Establishment Code, Vol-II/1987: 2005 Reprint Edition]

7.2 The authority component to grant leave may withhold whole or part of cash equivalent of both leave on average pay and leave on half average pay in the case of a railway servant who retires from service on attaining the age of retirement while under suspension or while disciplinary or criminal proceedings are pending against him/her, if in the view of such authority there is a possibility of some money recoverable from him/her on conclusion of the proceedings against him/her. On conclusion of the proceedings, he/she will become eligible to the amount so withheld after adjustment of Railways dues, if any.

[Ref: Railway Board’s letter No.F(E)III/82/LE 1/2, dated 29.12.1983, and
F(E)III/2008/LE-1/2, dated 13.04.2010 (RBE No. 53/2010)]

B- Retirement due to Medical Invalidation or Incapacity
8. Where a competent authority has reason to believe that a Railway servant is suffering from a contagious disease or a mental or physical disability which in the said authority’s opinion is interfering with the efficient discharge of duties by the railway servant the said authority may subject the railway servant to a medical examination. If, in the medical examination, the railway servant is declared unfit to continue in service, the competent authority may invalidate and retire him/her from service on medical grounds. If the railway servant is on duty, he/she shall be invalidated from service from the date of relief, which should be arranged without delay on receipt of the report of the medical authority. If, however, the railway servant is granted leave on receipt of the medical authority’s report or the railway servant is already on leave, then invalidation and retirement from service will be effective from the date following the date of expiry of the leave/ extension of leave, if any, granted.

[Ref: Para 2603 – Indian Railway Establishment Manual]

8.1 Railway servants, both permanent and temporary, who are declared medically unfit for service in the post held by them, but are declared fit for service in posts which fall in a lower medical category are eligible to be continued in service in posts requiring a lower medical standard. Alternative employment is normally provided to such personnel in posts corresponding to their lower medical standards. However, where in the case of temporary employees becoming medically de-categorized on account of circumstances not arising out of and in the course of employment alternate employment is not found within the period of leave/ extension of leave/ extraordinary leave granted to the railway servant as admissible under the rules, the employee should be discharged from service. Where the offer of alternative employment (one or more offers) have/ been refused the railway servants concerned should be retired.

[Ref: Rule 304 – Indian Railway Establishment Code, Vol-I/1985]

8.2 A railway servant who is declared by a Medical Authority to be completely and permanently incapacitated for further service may be granted, suo-motu, by the authority competent to grant leave, such equivalent of leave salary in respect of both leave on average pay and leave on half average pay, if any, at the credit of the Railway servant on the date of his/her invalidation from service, subject to a maximum of 300 days and the cash equivalent payable shall be the same as in sub-rule (A)(1)(b) of Rule 550.
A Railway servant not in permanent employ or temporary employ of more than 3 years shall not, however, be granted cash equivalent of leave salary in respect of leave on half average pay standing at his/her credit on the date of his/her in validation from service.

[Ref: Railway Board’s letter No.F(E)III/2008/LE-1/2, dated 13.04.2010 (RBE No. 53/2010)]

C – Premature Retirement
9. Premature retirement means the retirement of a railway servant ahead of attaining the age of superannuation either on his/her own volition or because of an order passed by the competent authority in Public Interest. This is distinct from voluntary retirement sought by the Railway servant and compulsory retirement ordered as a penalty, under the RS (D&A) Rules.

9.1 The appointing authority has the right to retire in public interest a Railway servant, falling in one or the other of the following categories, from service by giving him/her a notice of not less than three months in writing or by giving him/her pay and allowance in lieu thereof.

(a) A railway servant in Group ‘A’ or ‘B’ service or post working in a substantive or temporary capacity who had entered Government service before the age of thirty five years, after he has attained the age of fifty years;
(b) In any other case, after he/she has attained the age of 55 years;
(c) Pensionable Railway servants after their completing thirty years of qualifying service; and
(d) Non-pensionable Railway servants after their completing thirty years of service.

[Ref: Rule 1802(a), 1803(a), 1804(a) of Estt. Code Vol-II/1987
corresponding to Rules 2046(h), 2046(k)/ Estt. Code Vol-II/1973 &
Rule 66 of Railway Services (Pension) Rules, 1993]

9.2 The Railway servants have also a reciprocal right to seek premature retirement from service by giving in writing a notice of not less than three months to the appropriate authority on the same terms as set out in Para 9.1 above, i.e.,

(a) A group ‘A’ or ‘B’ Railway servant can seek retirement after he/she has attained the age of fifty years if he/she had entered service before thirty years of age and after he/she has attained the age of fifty five years if he/she had entered service after thirty five years of age;
(b) Other Railway servants can seek retirement after their attaining the age of fifty five years;
(c) Pensionable Railway servants can seek retirement after they have completed thirty years of qualifying service; and
(d) Non-pensionable Railway servants can seek retirement after they have completed thirty years of service.

[Ref: Rule 1802(b), 1803(b), 1804(b) of Estt. Code Vol-II/1987
corresponding to Rules 2046 – Estt. Code Vol-II/1973 &
Rule 66 of Railway Services (Pension) Rules, 1993]

9.3 An order requiring/ permitting a pensionable Railway servant to retire on completion of thirty years of qualifying service should as a rule, not be issued until after the fact of completion of thirty years of qualifying service by the Railway servant has been verified in consultation with the concerned Accounts Officer.

9.4 It is open to the appropriate authority to withhold permission to a railway servant under suspension, who seeks to retire prematurely by giving the requisite notice. The appropriate authority has also the right to refuse permission even if the Railway servant is placed under suspension after he/she has given the notice for retirement but such right shall be exercised, by the said authority before the expiry of the period of the notice given.

[Ref: Rule 1802(b), 1803(b) and
Govt. of India’s orders No. (3) below Rules 1805 – Estt. Code Vol-II/1987,
Rule 66 of Railway Services (Pension) Rules, 1993]

9.5 No formal order of acceptance of the notice of premature retirement sought by a Railway servant in terms of Rule 2046(i) or 2046(1) R-II/1973/ corresponding to Rule 1802(b)(1), 1803(b) or 1804(b) R-II/1987 is necessary and the Railway servant will be deemed to have retired automatically at the end of notice period of three months. In the case of Railway servants under suspension, while the appointing authority has, no doubt, the power to withhold permission, failure to communicate to the Railway servants concerned, within the period of notice of three months given by them, the orders withholding permission for them to retire will lead to their automatic retirement on expiry of the notice period.

[Ref: Board’s letter No.E(P&A)I-81/RT-4, dated 01.06.1981 and
E(P&A)I-83/RT-11, dated 03.11.1983]

9.6 A Railway servant giving notice of voluntary retirement under Rule 2046(i) or Rule 2046(1) (Corresponding to Rule 1802(b) & 1804(b) – R-II/1987 Edition/ Rule 1803(b) – R-II or Rule 66 of Railway Services (Pension) Rules, 1993), can withdraw his/her notice before the intended date of his/her retirement only with the specific approval of the appointing authority.

[Ref: Board’s letter No.E(P&A)I-90/RT-18, dated 06.11.1990 (RBE No. 196/1990)]

9.7 Notice of three months to retire a Railway servant can be given while the Railway servant is on leave including extra-ordinary leave.

[Ref: Board’s letter No.PC-67/RT-9, dated 08.09.1967]

10. Where a Railway servant is prematurely retired under Rule 1802, 1803, 1804 of IREC Vol-II/1987 corresponding to Rule 2046 R-II/1973 or Rule 66 of Railway Services (Pension) Rules, 1993, and pay and allowances are paid in lieu of three month’s notice, it should be ensure that the amount paid to the railway servants so retired, is computed on the basis of pay and allowances which he/she was receiving at the time of retirement, less only statutory deductions like Income Tax. All other dues outstanding against the railway servant such as House Building Advance/ Conveyance Allowance, House Rent, Travelling Allowance, CGHS contribution etc. may be left to be recovered, only from the gratuity payable under the Manual of Railway Pension Rules, 1972. Payment of salary and allowances should be made simultaneously with the order of premature retirement. No benefit of increment, if any, falling during the period covered by notice, should be given.

[Ref: Board’s letter No.E(P&A)I-75/RT-15, dated 24.12.1976 and 19.10.1978,
E(P&A)I-88/RT-25, dated 14.12.1988 (RBE No. 269/1988)]

10.1 Railway servant, who after serving the prescribed notice of three months in writing, retires prematurely after rendering thirty years of qualifying service but before attaining the age of 60 years, is entitled to leave salary and allowances. If any, as may be due and admissible in one lump-sum as a onetime settlement for the terminal leave that may be granted to him.

[Ref: Board’s letter No.E(P&A)I-79/JCM/DC-3, dated 05.09.1979 and
E(P&A)I-98/RT-6, dated 14.05.1998 (RBE No. 103/1998)]

10.2 Where a Railway servant prematurely retired by giving salary and allowance in lieu of notice of three months, is reinstated on review on the condition that intervening period will be treated as dies-non, the first three months of such period will be treated as duty and the remaining period as dies-non. There is no need to recover the salary and allowances already paid in lieu of notice.

[Ref: Board’s letter No.E(P&A)I-81/RT-11 (Pt-I), dated 25.10.1982]

10.3 Military Service rendered prior to appointment on the Railways, if taken into account for purposes of fixation of pay, seniority, SRPF benefits will also count for the purpose of computing service of 30 years for premature retirement under Rule 1802, 1803 and 1804 – R-II/1987.

[Ref: Board’s letter No.E(P&A)I-82/RT-4, dated 06.08.1983]

10.4 A Railway servant, who is prematurely retired and who is in occupation of Railway Quarter may be permitted to retain the accommodation on normal rent for one month from the date of expiry of the period of notice. Where salary and allowances have been given in lieu of notice and the employee is sanctioned leave, retention of accommodation may be allowed on normal rent for the full period of leave subject to a maximum of 4 months. If the leave is less than a month or if no leave is admissible or sanctioned, retention on normal rent for one month may be allowed.

[Ref: Board’s letter No.F(X)I/75/11/8, dated 07.12.1977]

10.5 In Case of Premature/ Voluntary Retirement

(i) (a) A Railway servant who retires by giving notice to the Government or is retired by the Government by giving him/her notice or pay and allowances in lieu of such notice, in accordance with the terms and conditions of his/her service may be granted, suo-motu, by the authority competent to grant leave, cash equivalent of the leave salary in respect of both leave on average pay and leave on half average pay at his credit, subject to a maximum of 300 days. The cash equivalent payable shall be the same as in sub-rule (A)(1)(b) of Rule 550.

(b) The pension and pension equivalent of other retirement benefit and ad-hoc relief/ graded relief on pension shall be deducted from the leave salary paid for the period of half pay leave, if any, for which the cash equivalent is payable.
(c) The amount so calculated shall be paid in one lump-sum as a onetime settlement. No House Rent Allowance shall be payable.
Provided that if leave salary for the half pay leave component falls short of Pension and other pensionary benefits, cash equivalent of half pay leave shall not be granted;
Provided further that a Railway servant who is retired by Government by giving him/her pay and allowances in lieu of notice, may apply for leave within the period for which such pay and allowances were given, and where he/she is granted leave, the leave salary shall be allowed only for a period of leave excluding the period for which pay and allowances in lieu of notice have been allowed.

(ii) Where the services of a Railway servant are terminated by notice or by payment of pay and allowances in lieu of notice, or otherwise in accordance with the terms and conditions of his appointment, he/she may be granted, suo-motu, by the authority competent to grant leave, cash equivalent in respect of both leave on average pay and leave on half average pay at his/her credit on the date on which he/she cease to be in service, subject to a maximum of 300 days and the cash equivalent payable shall be the same as in sub-rule (A)(1)(b) of Rule 550. The amount so calculated shall be paid in one lump-sum as a onetime settlement. No House Rent Allowance shall be payable. In case of re-employed railway servants, the cash equivalent shall be based on the pay drawn exclusive of the pension and pension equivalent of other retirement benefits.

(iii) A Railway servant who is re-employed after retirement may, on termination of his/her re-employment, be granted, suo-motu by the authority competent to grant leave, cash equivalent in respect of both leave on average pay and leave on half average pay at his/her credit on the date of termination of his/her re-employment subject to a maximum of 300 days, including the period for which encashment was allowed at the time of retirement and the cash equivalent payable shall be the same as in sub-rule (A)(1)(b) of Rule 550.

(iv) The authority competent to grant leave may withhold whole or part of cash equivalent of both leave on average pay and leave on half average pay in the case of a railway servant who retired from service on attaining the age of retirement while under suspension or while disciplinary or criminal proceedings are pending against him/her, if in the view of such an authority there is a possibility of some money becoming recoverable from him/her on conclusion of the proceedings against him/her. On conclusion of the proceedings he/she will become eligible to the amount so withheld after adjustment of Railway dues, if any.

[Ref: Railway Board’s letter No.F(E)III/82/LE 1/2, dated 29.12.1983 and
F(E)III/2008/LE-1/2, dated 13.04.2010 (RBE No. 53/2010)]

(v) In the cases of resignation or quitting of service, the railway servant may be granted, suo-motu, by the authority competent to grant leave, cash equivalent in respect of leave on average pay at his/her credit on the date of cessation of service to the extent of half of such leave at his/her credit subject to a maximum of 150 days.

[Ref: Board’s letter No.F(E)III/82/LE 1/2, dated 29.12.1983 &
F(E)III/2008/LE-1/2, dated (RBE No. 53/2010) and
PC-IV/86/LE/1, dated 24.10.1986 (RBE No. 208/1986) and
Rule 550 – Indian Railway Establishment Code Vol-I/1985]

D- Voluntary Retirement
11. Based on the recommendations of the Administrative Reforms Commission, the scheme of voluntary retirement of Railway servants after they have rendered Twenty Years of qualifying service/ service, on proportionate pension and gratuity/ proportionate SC to PF, with a weightage upto a maximum of five years towards qualifying service/ service has been introduced with effect from 09.11.1977. Under this scheme, which is purely voluntary, the initiative rests with the Railway servant and the Govt. does not have the reciprocal right to order on its own retirement of Railway servants.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 09.11.1977]

Once a Railway servant has rendered the minimum qualifying service of twenty years, pension shall be paid at 50% of the emoluments or average emoluments received during the last 10 months, whichever is more beneficial to him.

[Ref: Board’s letter No.F(E)III/2008/PN1/13, dated 15.09.2008 (RBE No. 112/2008)]

11.1 Period of Notice to be Given
A Railway servant desirous of retiring voluntarily after twenty years of qualifying service/ service should give a notice of three months in writing to the appointing authority. A notice of less than three months may also be accepted by the appointing authority in deserving cases and when such less than 3 months notice is accepted in the case of pensionable Railway employees, it should be on the specific condition that the railway servant shall not apply for commutation of a part of his/her pension before the expiry of period of notice of 3 months. Before serving the notice of voluntary retirement, a Railway servant should satisfy himself/ herself by means of a reference to the appropriate administrative authority that he/ she has completed twenty years of service qualifying for pension/ service of twenty years for purposes of Special Contribution to Provident Fund, as the case may be.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 09.11.1977,
E(P&A)I-92/RT-5, dated 13.07.1992 (RBE No. 110/1992)]

Authority Competent to Accept Notice
11.2 Acceptance of the notice by the appointing authority is necessary, where the date of retirement of the railway servant on the expiry of notice, would be earlier than the date on which he/she would have retired prematurely in terms of provisions of Rule 2046(1)/ 1802(b) – R-II or on completion of 30 years of service qualifying for pension in terms of Rule 1803(b) R-II. General Managers, Heads of Deptt. and the Divisional Railway Managers have the authority to accept notice of voluntary retirement of Railway servants as mentioned below. Power should be exercised by the authorities personally.

(i)	General Manager	(a)   Group ‘B’ officers (b)   Group ‘C’ & ‘D’ Railway servants
Where the period of notice is less than three months, he/she may in deserving cases accept the notice, exercising the authority in consultation with the FA&CAO.
(ii)	Head of the Deptt.	Group ‘C’ & ‘D’ Railway servants working under his/her control in the Headquarters office, Extra-Divisional offices.
Where the notice is less than three months, he/she may accept the same in deserving cases, exercising his/her authority in consultation with the associate Finance.
(iii)	Divisional Railway Manager	Group ‘C’ & ‘D’ Railway servants working under his/her control.
Where the notice is less than three months, he/she may accept the same in deserving cases exercising his/her authority in consultation with the associate Finance.

Acceptance of the notice in all cases by the authorities mentioned above will be subject to clearance by the Vigilance Branch and from DAR angle.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 19.06.1979,
26.05.1980, 12.09.1980 & 10.02.1981]

11.3 Where proceedings under the Railway Servants (D&A) Rules are pending or contemplated as for a major penalty against Railway servant who has given notice of voluntary retirement and the disciplinary authority, having regard to the circumstances of the case, is of the view that the penalty of removal of dismissal from service would be warranted in the case or in cases where prosecution is contemplated against the railway servant concerned or may have been launched in a Court of Law acceptance of the notice would require the approval of the Minister in charge in regard to Group ‘A’ & ‘B’ Railway servants and that of the General Manager in the cases of Group ‘C’ & ‘D’ Railway servants. Therefore, in the cases of Group ‘A’ & ‘B’ officers, the General Manager, while making a reference to the Railway Board for advice, should indicate whether departmental/ vigilance/ SPE investigation or consequential DAR proceedings are pending or contemplated against the officers concerned for the imposition of a major penalty and weather removal or dismissal from service would be warranted in the case(s).

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 09.11.1977 & 26.05.1980]

11.4 A Railway servant giving notice of voluntary retirement the acceptance of which requires appointing authority’s approval, may presume acceptance of the notice and the requirements shall be effective in terms of the notice, unless the competent authority issues an order to the contrary, before the expiry of the period of notice.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 09.11.1977]

11.5 In all other cases of Gazetted Railway servants, where the approval of the Board/ Minister is necessary for acceptance of notice, the following instructions, should, be adhered to, in making reference to the Railway Board.

(i) On receipt of notice of voluntary retirement, it should be promptly forwarded, along with specific recommendations of the GM in regard to the acceptance of the notice. This action is to be taken within 2 weeks of the receipt of the notice, to ensure that the Ministry has adequate time to process the case and obtain Minister’s approval.

(ii) A clear certificate, duly vetted by the FA&CAO should be enclosed, certifying that the officer has completed the requisite period of qualifying service (service in the case of a PF optee) for serving a notice of voluntary retirement.

(iii) No condition of any nature, whatsoever, should be attached to a notice of voluntary retirement. Such conditional notices should be rejected at the GM’s level.

(iv) While recommending the acceptance of the notice, the GM should also indicate whether any disciplinary proceedings are pending or are contemplated against the officer concerned for the imposition of major penalty. If the Railway has no information about any disciplinary proceedings which are pending or contemplated, this fact should be included in the recommendations. Similarly, the recommendation should mention weather prosecution is contemplated or has been launched in a Court of Law against the officer. If the Railway has no information about any prosecution contemplated or launched, this has also to be mentioned in the recommendations.

(v) If an officer desires that the notice should be accepted before the expiry of the stipulated period of 3 months, he/she should make it clear in the notice itself.

(vi) If an officer wishes to change the date of his/her voluntary retirement before acceptance of his/her notice, by the competent authority, he/she may write to the controlling officer withdrawing his/her earlier notice and serve a fresh notice.

(vii) If, after acceptance of the notice given, but before the expiry of the notice period, an officer finds that he/she requires some more time beyond the original stipulated date to proceed on retirement, he/she should apply for withdrawal of the notice served. He/she may again apply, giving fresh notice, only after the approval of the competent authority for withdrawal of the notice. In such cases, however, adequate reasons should be recorded in support of the request for withdrawal of the notice. In the case of Group ‘A’ officers, since the President is the appointing authority, approval of this Ministry is necessary for withdrawal of the notice served.

(viii) If, after acceptance by the competent authority for the withdrawal of the notice an officer again wishes to seek voluntary retirement on any further occasion, a fresh notice should be served at the appropriate time, keeping in view that this is again subject to Government’s approval. Acceptance of an earlier notice does not mean automatic acceptance of the second notice.

(ix) A notice of voluntary retirement should not be lightly taken and should be served only after assessing all the pros and cons. In a case where too many changes are made in regard to intention to retire, withdrawal may not be permitted by the Government.
Withdrawal of Notice

11.6 A notice of voluntary retirement given by a railway servant may be withdrawn by him only with the approval of the appointing authority provided the request for withdrawal is made before the expiry of notice period irrespective of the fact that the competent authority has accepted his/her request for voluntary retirement.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 09.11.1977,
No.E(P&A)I-90/RT-18, dated 06.11.1990 (RBE No. 196/1990), and
E(P&A)I-2000/RT-9, dated 05.11.2001 (RBE No. 217/2001)]

11.7 The competent authority should consider the request for withdrawal of the notice for voluntary retirement in a reasonable and rational manner and refuse such a request only if there are valid reasons for doing so which should be recorded by way of speaking order.

[Ref: Board’s letter No.E(P&A)I-2000/RT-9, dated 27.03.2001 (RBE No. 64/2001), &
E(P&A)I-2000/RT-9, dated 05.11.2001 (RBE No. 217/2001)]

Effect of Leave
11.8 If a railway servant seeks to retire voluntarily under the scheme of voluntary retirement while on ‘leave not due’ without actually returning to duty he/she shall retire with effect from the date of commencement of the ‘leave not due’, payment of leave salary made in respect of such ‘leave not due’ shall be recovered, from him/her as provided in Rule 528 – Indian Railway Establishment Code, Vol-I, 1985.

11.9 A Railway servant giving notice of voluntary retirement may also apply, before the expiry of the notice period for the leave standing to his/her credit, which may be granted to him/her, to run concurrently with the period of notice. Extraordinary Leave is not termed as Leave standing to his/her credit and therefore, it cannot run concurrently with the period of Notice given by him/her for seeking voluntary retirement. In case, a Railway servant applies for voluntary retirement while already on extraordinary leave other than on medical ground, the notice period need not be insisted upon and his/her request may be accepted with immediate effect provided he/she is clear from vigilance angle. However, if a railway servant while already on extraordinary leave on medical grounds applies for voluntary retirement, the notice period, if any, given may be accepted and he/she may be allowed to retire after the expiry of the Notice period subject to Vigilance clearance.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 09.11.1977,
E(P&A)I-77/RT-46, dated 22.08.1985 (RBE No. 239/1985), and
E(P&A)I-78/CPC/FE-2, dated 17.01.1979 and,
No.E(P&A)I-2003/RT-4, dated 30.07.2003 (RBE No. 126/2003)]

Weightage Towards Qualifying Service/ Service
12. A Railway servant retiring voluntarily is eligible to be granted weightage upto a maximum of five years as an addition to the qualifying service if he/she is pensionable and as an addition to service for purpose of payment of SC to PF if he/she is governed by SRPF (Contributory) Rules. The grant of weightages is, however, subject to the condition that the total qualifying service/ service of the railway servant including the weightage should not in any case exceed 33 years and should not also extend beyond the date of his/her superannuation.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 09.11.1977 & 09.11.1983]

12.1 Effective from 10.09.1983, the benefit of grant of weightage upto a maximum of five years as an addition to the qualifying service/ service subject to the same conditions as given in para 10 above, is admissible to the railway servants seeking premature retirement under the provisions of rules 2046(i) or 2046(I) – R-II/1973 or Rule 66 of Railway Services (Pension) Rules, 1993, corresponding to Rule 1802(b)(i) or 1803(b) or 1804(b) – R-II/1987.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 09.11.1977 & 09.11.1983]

12.2 The benefit of weightage will, however, not be admissible to the Railway servants who are premature retired in the public interest in terms of rules 2046(h) or 2046(k) R-II/1971 or Rule 66 of Railway Services (Pension) Rules, 1993 corresponding to rules 1802(a), 1803(a), 1804(a) R-II/1987.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, 09.11.1983]

12.3 The weightage given as an addition to the qualifying service/ service will only be for purpose of payment of pension and granting/ SC to PF and not for purposes of making Government contribution to PF. The weightage will also not entitle the railway servant to any benefit of fixation of pay for purposes of calculating pensionary benefits or SC to PF, which will only be based on the actual emolument calculated with reference to the date of retirement.

12.4 The weightage will, however, count towards post retirement passes.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 09.11.1977]

Employees to Whom the Scheme of Voluntary Retirement will not Apply
13. The scheme of voluntary retirement on completion of 20 years of qualifying service/ service with benefit of weightage towards qualifying service/ service will not be applicable to:-

(a) Railway servants on deputation to autonomous bodies and public sector undertakings who proposes to get absorbed in the borrowing organization.
(b) Railway servants on deputation to joint sector undertaking and who seek to get absorbed therein. (Joint Sector Undertakings are undertakings under the joint control of the Central Govt. and a State Govt. or that of two or more State Governments).
(c) Railway servants including Scientist or Technical Experts, who are

(i) On assignment under the Technical & Economic Cooperation (ITEC) programme of the Ministry of External Affairs and other aid programs;
(ii) Posted abroad in foreign based offices of the Ministries/ Departments, or
(iii) On a specific contract assignment to a foreign government.
They will be eligible to seek voluntary retirement only, after having been transferred to India, they have assumed charge of a post in India and served for a period of not less than one year.
However, the above restrictions of resuming the charge of the post in India and to serve for a period of not less than one year for seeking voluntary retirement will not be applicable in case of officers who are on deputation to the UN/ International Organizations. In other words, the officers who are on deputation to the UN/ International Organizations are eligible to seek voluntary retirement during the period of deputation or thereafter without any condition as specified in Para (c) above.

[Ref: Board’s letter No.E(P&A)I-2004/RT/4, dated 05.07.2004 (RBE No. 142/2004)]

13.1 The scheme, will, however, apply to Railway servants who are on deputation to other Central Govt. Deptts., State Govt., Govt. of Indian Territories. The notice of voluntary retirement of such Railway servant should be forwarded to the parent Deptt. of the Railways for examination and acceptance or otherwise of the request. The weightage towards qualifying service/ service would be would be given on the total service rendered by the Railway servants in the borrowing deptt. as well as the parent department.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 09.11.1977,
E(P&A)I-77/RT-46, dated 22.08.1985 (RBE No. 239/1985), &
E(P&A)I-85/RT-14, dated 08.10.1985 (RBE No. 278/1985)]

Temporary Railway servants
14. Temporary Railway servants who were in service as on 30.09.1986 or thereafter, seeking voluntary retirement on completion of 20 years or more of service are eligible to the grant of proportionate pensionary benefits including Family Pension, in accordance with the provisions of Pension Rules. The terms and conditions for retirement under the scheme of voluntary retirement will apply mutatis mutandis. Spells of service, which would be treated as not qualifying for purposes of pension, shall be ignored. Instructions, if any, in service will amount to forfeiture of past service, unless condoned.

[Ref: Board’s letter No.E(P&A)I-85/FE-4/7, dated 07.11.1986 (RBE No. 216/1986)]

15. A Railway servant who is continuously sick/ involved in accident or otherwise compelled to remain on extra ordinary leave, after exhausting all the leave available and who has not been medically incapacitated or de-categorized, is eligible to give a notice for voluntary retirement, if he/she desires to do so, simultaneously seeking curtailment of both the notice period in full as well as the un-expired portion of extraordinary leave sanctioned. Such a notice may be accepted and the railway servant retired with effect from the afternoon of the date on which the notice is served. The facility allowed herein will not apply to cases of premature retirement sought by railway servant in terms of provisions of Rule 2046 – R-II/1973, Rule 1802(b)(i), 1803(b)/ 1804(b) – R-II/1987 or Rule 66 of Railway Services (Pension) Rules, 1993.

[Ref: Board’s letter No.E(P&A)I-86/RT-19, dated 29.04.1988 (RBE No. 91/1988)]

Other Provisions
16. A temporary Railway servant whose services has been terminated summarily otherwise then as a penalty under the D&A Rules, is entitled to claim pay and allowances in lieu of notice period. It is the duty of the Administration to arrange for the payment immediately on his/her discharge.

[Ref: Board’s letter No.E(NG)II/72/RG 1, dated 09.01.1975]

16.1 In the case of a railway servant under suspension, the exercise of the right by him/her to retire, in terms of the provisions or Rule 2046 R-II/1971, 1802(b), 1803(b)/ 1804(b) R-II/1987 or Rule 66 of Railway Services (Pension) Rules, 1993, will be, subject to the prior approval of the appointing authority.

[Ref: Board’s letter No.E(D&A)65 RG 6-54, dated 18.08.1966 &
Rule 66 of Railway Services (Pension) Rules, 1993]

16.2 There is no restriction on the right of a railway servant who is on foreign assignment with International Organization(s)/ Foreign Government to seek premature retirement, while serving abroad, if he/she is eligible to do so.

[Ref: Board’s letter No.E(NG)II/76/RG 1, dated 17.01.1977]

16.3 A Railway servant on deputation to Public Sector/ Autonomous Body is eligible to seek premature retirement under Rule 2046 – R-II/1973, 1802(b), 1803(b)/ 1804(b) R-II/1987 or Rule 66 of Railway Services (Pension) Rules, 1993, for absorption therein but without the benefit of weightage towards qualifying service/ service.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 02.08.1985 (RBE No. 219/1985), &
15.10.1985 (RBE No. 284/1985)]

16.4 Once a railway servant has retired voluntarily/ prematurely on his/her own option available to him/her under the Rules, the General Managers have no power to re-employ him/her.

[Ref: Board’s letter No.E(P&A)I-77/RT-46, dated 29.05.1984]

16.5 Legal and financial assistance may be provided to a retired Railway servant for the conduct of legal proceedings instituted against him/her by a private party in respect, of matters connected with his/her official duties or position before his/her retirement, as is admissible to a serving Railway servant, except that:-

(i) The benefit will not be admissible to those retired compulsorily as a measure of punishment; and
(ii) The amount of interest free advance will be subject to a maximum limit of Rs.500. (Bond should be obtained, wherever advance is granted and consultation with the UPSC, wherever required should be made).

[Ref: Board’s letter No.E(G)77/LL 1/3, dated 12.05.1977]

16.6 Benefit of restructuring of cadre will be admissible to a retired Railway servant, who was in service, on the crucial date for restructuring but had retired before the implementation of the restructuring order. The benefit will be admissible only for the first promotion, if the railway servant is otherwise eligible and suitable and he/she will not be eligible for any subsequent promotion, even if it was due in terms of the restructuring orders. Notional or proforma pay in the higher grade will be allowed and the same counted for assessment of the retirement benefits.

[Ref: Board’s letter No.PC-III/85/UPG/15, dated 22.08.1986 (RBE No. 138/1986)]

16.7 A Railway servant retiring voluntarily under the scheme of voluntary retirement is entitled to travelling allowance as admissible to a railway servant proceeding on normal retirement.

[Ref: Board’s letter No.PC-III/78/TA 1/12, dated 12.06.1980]

17. (i) While referring to this Master Circular, the original letters/ references mentioned herein should be read for a proper appreciation. This circular is only a consolidation of the existing instructions and should not be treated as a substitution of the original letters/ references. In case of doubt, the original letters/ references should be relied upon as authority.
(ii) The instructions contained in the original letters referred to, have only prospective application unless indicated otherwise; and
(iii) If any letter having a bearing on the subject, which has not been superseded, has been lost sight of in the preparation of the Master Circular, the said letter which has been missed through oversight, should not be ignored but should be treated, as valid and operative.

18. The letters/ references relied upon for the preparation of the Master Circular has been indicated in the enclosure.

DA: list showing the number and date of letter sir Francis relied upon.

List indicating the reference number and date of letters relied upon for preparing the Master Circular.

RBE No.	Letter No.	Date	Subject	BR	FR
	PC-62/RT-1	05.12.1962
	E(D&A)65 RG6-54	18.08.1966
	PC-67/RT-9	08.09.1967
	PC-III/73/RT/4	18.12.1973
	PC-III/73/RT/4	20.05.1974
	PC-III/73/RT/4	02.08.1974
	E(NG)II/72/RG1	09.01.1975
	F(E)III/75/LE1/1	20.05.1976
	E(P&A)I-75/RT-15	24.12.1976
	E(NG)II/76/RG1	17.01.1977
	E(G)77 LL 1/3	12.05.1977
	PC-III/73/RT/4	06.06.1977
	E(P&A)I-77/RT-46	09.11.1977
	F(X)I/75/11/8	07.12.1977
	E(G)78/RT 2/10	03.07.1978
	E(P&A)I-75/RT-15	19.10.1978
	E(P&A)I-78/CPC/FE-2	17.01.1979
	E(P&A)I-79/EM 1/2	07.05.1979
	E(P&A)I-79/RT-9	08.06.1979
	E(P&A)I-77/RT-46	19.06.1979
	E(P&A)I-79/JCM/DC-3	05.09.1979
	E(P&A)I-77/RT-46	26.05.1980
	PC-III/78/TA 1/12	12.06.1980
	E(P&A)I-77/RT-46	12.09.1980
	E(P&A)I-77/RT-46	10.02.1981
	E(P&A)I-81/RT-4	01.06.1981
	E(P&A)I-81/RT-11(Pt.I)	25.10.1982
	E(P&A)I-82/RT-16	18.12.1982
	E(P&A)I-77/RT-46	21.05.1983
	E(P&A)I-82/RT-4	06.08.1983
	E(P&A)I-83/RT-11	03.11.1983
	E(P&A)I-77/RT-46	09.11.1983
	F(E)III/82/LE 1/2	29.12.1983
	E(P&A)I-83/RT-20	09.05.1984
	E(P&A)I-77/RT-46	28.05.1984
	E(P&A)I-77/RT-46	25.09.1984
	E(P&A)I-77/RT-46	02.08.1985
	E(P&A)I-77/RT-46	22.08.1985
	E(P&A)I-85/RT-14	08.10.1985
	E(P&A)I-77/RT-46	15.10.1985
	PC-III/85/UPG/15	22.08.1986
	PC-IV/86/LE/1	24.10.1986
	E(P&A)I-85/FE-4/7	07.11.1986
	E(P&A)I-86/RT-19	29.04.1988
	E(P&A)I-88/RT-25	14.12.1988
	E(P&A)I-83/RT-20	06.04.1989
	E(P&A)I-90/RT-18	06.11.1990
	E(P&A)I-92/RT-5	13.07.1992
	E(P&A)I-94/RT-8	08.05.1995
	E(P&A)I-98/RT-6	14.05.1998
	E(P&A)I-98/RT-6	22.07.1998
	E(G)99 RT1-1	18.02.2000
	E(P&A)I-2000/RT-9	27.03.2001
	E(P&A)I-2000/RT-9	05.11.2001
	E(P&A)I-2003/RT-4	30.07.2001
	E(P&A)I-2004/RT-4	05.07.2004
	E(P&A)I-2007/RT-8	13.12.2007
	F(E)III/2008/LE-1/2	13.04.2010
	E(P&A)I-2016/RT-16	20.09.2018
	Para 2603	–	Indian Railway Establishment Manual
	Rule 304	–	Indian Railway Establishment Code Vol-I/1985
	Rule 550	–	Indian Railway Establishment Code Vol-I/1985
	Rule 66	–	Indian Railway Services (Pension) Rules, 1993
	Rule 1801	–	Indian Railway Establishment Code Vol-II/1987
	Rule 1802	–	Indian Railway Establishment Code Vol-II/1987
	Rule 1803	–	Indian Railway Establishment Code Vol-II/1987
	Rule 1804	–	Indian Railway Establishment Code Vol-II/1987

Download Master Circular No. 35

Forward reference⇒RBE No.