Pension: RBE No.08/1999 – Retirement Benefits

No.F(E)III/98/PN1/29, dated 15.01.1999

Sub: Implementation of Government’s decisions on the recommendations of the 5th CPC relating to retirement benefits.                                      

1.0   Further to implementation of Government’s decision on the recommendations of Vth Central Pay Commission relating to pensionary matters, as circulated vide Board’s letter No.F(E)III/97/PN1/22, dated 05.11.1997 (RBE No.142/1997), F(E)III/97/PN1/23, dated 07.11.1997 (RBE No.143/1997), F(E)III/98/PN1/2, dated 10.03.1998 (RBE No.55/1998) and F(E)III/98/PN1/11, dated 05.06.1998 (RBE No.121/1998) the President is now pleased to decide that w.e.f. 01.01.1996, pension of all pensioners irrespective of their date of retirement shall not be less than 50% of the minimum pay in the revised scale of pay introduced w.e.f. 01.01.1996 of the post last held by the pensioner/ deceased Railway servant. However, the existing provisions in the Railway Services (Pension) Rules, 1993 as modified vide Board’s letter No.F(E)III/97/PN1/22 dated 05.11.1997 (RBE No.142/1997) and 23.10.1998 (RBE No.242/1998) governing qualifying service and minimum pension shall continue to be operative. Similarly w.e.f. 01.01.1996 family pension shall not be less than 30% of the minimum pay in the revised scale of pay introduced w.e.f. 01.01.1996 of the post last held by the pensioner deceased Railway servant. Accordingly, the pensionary benefits of all the Railway servants who were in service on 01.01.1996 and retired/ died on or after 01.01.1996 and all those Railway servants retired/ died prior to 1996 shall be further regulated as per the procedures indicated below. 

2.0  Revision of Pension/ Family Pension of Railway servants who were in service on 01.01.1996 and retired/ died on or after 01.01.1996:-

2.1   Pensionary benefits shall continue to be regulated in terms of the provisions contained in Board’s letter No.F(E)III/97/PN1/22, dated 05.11.1997 (RBE No.142/1997) and 23.10.1998 (RBE No.242/1998). However, where the pension of a Railway servant retiring from service on or after 01.01.1996 with the maximum qualifying service of 33 years, when calculated at 50% of the average emoluments, falls short of 50% of the minimum pay in the revised scale of pay introduced w.e.f. 01.01.1996, for the post last held by the Railway Servant as on the date of retirement, the pension should be raised to 50% of the minimum pay in the revised scale of pay. Where the retiring Railway servant has less than the maximum qualifying service of 33 years, the pension so revised should be suitably reduced pro-rata subject to a minimum of Rs.1275. The pension thus revised should be treated as the basic pension from the date of retirement.

2.2   The family pension shall be calculated at 30% of the last pay drawn by the Railway servant in the revised scale of pay subject to a minimum of Rs.1275. The enhanced family pension, wherever admissible, shall be limited to twice the family pension or the amount of pension or 50% of the last pay drawn, whichever is less.

2.3   As a result of revision of pension as at para 2.1 above, the post 01.01.1996 pensioners who have already commuted a fraction of their pension, may be paid the difference between the commuted value determined with reference to revised pension and the commuted value already authorized and the consequent reduction in basic pension should be effected from the date of payment of the difference. The amount so reduced from the basic pension shall be restored on the expiry of 15 years from the date of reduction.

2.4   In the case of Railway servants who retired/ died on or after 01.01.1996 but prior to issue of these instructions, action to revise the pension/ family pension should be initiated suo moto by the Head of Office and revised pension payment order authorizing disbursement of revised pension/ family pension together with dearness relief as admissible from time to time, may be issued. The revised pension payment order should also contain authorization for payment of arrears of difference of pension/ family pension dearness relief from the date of retirement or from the date following the date of death of the pensioner as also for payment of difference in commutation value together with endorsement as to the date of reduction in pension on account of payment of difference in commutation value and date of restoration of the pension so reduced.

3.0  Revision of Pension/ Family Pension of Railway servants who were in service on 01.01.1986 and retired/ died during the period from 01.01.1986 to 31.12.1995:-

3.1   If the basic pension of a Railway servant who retired from service during the period from 01.01.1986 to 31.12.1995 with the maximum qualifying service of 33 years, when consolidated as on 01.01.1996 in terms of para 4.1 of DoP&PW’s O.M. No.45/86/97-P&PW(A)Pt.II, dated 27.10.1997 circulated on the Railways vide Board’s letter No.F(E)III/97/PN1/23, dated 7.11.1997 (RBE No.143/1997), works out to be less than 50% of the minimum pay of the revised scale of pay introduced w.e.f. 01.01.1996 for the post last held by the Railway servant as on the date of retirement, his/her basic pension should be raised to 50% of the minimum pay of the revised scale of pay. Where the retired Railway servant had less than the maximum qualifying service of 33 years, the basic pension so revised should be suitably reduced pro-rata subject to a minimum of Rs.1275. The pension thus revised should be treated as the basic pension w.e.f. 01.01.1996.    

3.2   If the family pension in respect of a Railway servant who retired/ died during this period, when revised in terms of DoP&PW’s O.M. dated 27.10.1997 referred to in para 3.1 above and O.M. No.45/86/97-P&PW(A) Pt.IV, dated 08.05.1998 circulated on the Railways vide Board’s letter No.F(E)III/98/PN1/11, dated 05.06.1998 (RBE No.121/1998), works out to be less than 30% of the minimum pay of the revised scale of pay introduced  w.e.f. 01.01.1996 applicable to the Railway servant as on the date of retirement/ death while  in service, the shortfall may be made good by raising the family pension to 30% of the  minimum pay of the revised scale of pay subject to a minimum of Rs.1275. The revised basic family pension should be paid from 01.01.1996 or from the date following the date of death of the pensioner, whichever is later.

3.3   The grant of enhanced family pension will be regulated in accordance with the provisions contained in DoP&PW’s O.M. No.45/8/98-P&PW(E), dated 15.12.1998 circulated on the Railways vide Board’s letter No.F(E)III/98/PN1/11, dated 07.01.1999 (RBE No.04/1999).

3.4   Where applications have already been received for revision of family pension in respect of Railway servants who retired/ died during the period from 01.01.1986 to 31.12 1995 in terms of DoP&PW’s O.M. dated 08.05.1998 referred to in para 3.2 above, further revision of family pension, wherever admissible, in terms of these orders should be done suo moto on the basis of applications already received. In other cases where family pension has been worked out at 30% of the last pay drawn by the retired/ deceased Railway servant and consolidation of which done in terms of para 4.1 of DoP&PW’s O.M. No.45/86/97-P&PW(A) Pt.II, dated 27.10.1997 has been treated as final vide para 9.1 (ii) thereof, further revision of family pension, in terms of para 3.2 above and also revision of pension, wherever admissible, in terms of para 3.1 above, may be done on receipt of applications from the pensioners/ family pensioners in the prescribed form (in duplicate) as in Annexure. 

4.0   Revision of pension/ family pension of Railway servants who were in service prior to 01.01.1986:-        

4.1   In respect of Railway servants who retired prior to 01.01.1986 with a maximum qualifying service of 33 years, if the pension revised as on 01.01.1986 and consolidated as on 01.01.1996 in terms of para 2 of DoP&PW’s O.M. No.45/86/97-P&PW(A) Pt.III, dated 10.02.1998, circulated on the Railways vide Board’s letter No.F(E)III/98/PN1/2, dated 10.03.1998 (RBE No.55/1998), works out to be less than 50% of the minimum pay  of the revised scale of pay introduced w.e.f. 01.01.1996, applicable to the Railway servants  as on the date of retirement, the amount of such pension should be raised to 50% of the  minimum pay of the revised scale of pay and where the Railway servants had retired with  less than the maximum qualifying service of 33 years, the pension so revised should be suitably reduced pro-rata subject to a minimum of Rs.1275. The pension thus revised shall be admissible to the pensioner w.e.f. 01.01.1996.

4.2   If the family pension in respect of the Railway servants who retired/ died prior to 1986 as revised in terms of paras 3, 4 & 5 of DoP&PW’s O.M. dated 10.02.1998 referred to in para 4.1 above falls short of 30% of the minimum pay of the revised scale of pay introduced w.e.f. 01.01.1996 applicable to the Railway servants as on the date of retirement/ death, the family pension shall be raised to 30% of the minimum pay of the revised scale of pay subject to a minimum of Rs.1275. The family pension thus revised shall be admissible to the family pensioner w.e.f. 01.01.1996 or from the date following the date of death of the pensioner.

4.3   Where applications have already been received from the pre-1986 pensioners/ family pensioners in pursuance of the earlier orders regardless of the fact whether their cases have already been finalized or are in the process of finalization, action to revise pension/ family pension in terms of these orders shall be initiated suo moto by the Head of Office. Those pensioners/ family pensioners who have not so far submitted the necessary applications and are desirous of availing the benefits under these orders may submit the applications for revision of pension/ family pension in the prescribed form in duplicate as in Annexure to the Pension Sanctioning Authorities latest by 31st March, 1999.

5.0   Issue of revised pension payment order in respect of pre-1996 pensioners family pensioners:-

5.1   On revision of pension/ family pension of the pre-1996 pensioners/ family pensioners in terms of para 3.1, 3.2, 3.2, 4.1 & 4.2 above revised pension payment orders, authorizing disbursement of revised pension w.e.f. 01.01.1996 and revised family pension w.e.f. 01.01.1996 or from the date following the date of death of the pensioner, together with dearness relief, as admissible from time to time, may be issued, also authorizing therein payment of arrears of difference arising out of revision of pension/ family pension under these orders.

6.0   It is once again reiterated that the Pension Sanctioning Authority, in no case, will ask the Pensioner/ family pensioner to surrender his/her original Pension Payment Order (PPO) for issuing revised authority. It may also be ensured that a copy of the revised PPO should be invariably endorsed to the pensioner/ family pensioner. It shall be the responsibility of the Head of the Office from which the Railway servant had retired or where he was working prior to his demise to revise the pension/ family pension of all pensioners/ family pensioners wherever necessary w.e.f. 01.01.1996 in accordance with the modified provisions mentioned above and to issue revised Pension Payment Orders (PPOs). Concerted efforts should be made by all the authorities concerned to ensure that the revised PPOs are issued, wherever necessary, with the utmost expedition.

7.0   Publicity: Wide publicity in the form of advertisements in Press in both national and vernacular newspapers and through All India Radio and local T.V. channels should be given to these orders and also calling in for applications from the pre-1996 pensioners family pensioners who have not so far submitted the same in pursuance of earlier orders and are now desirous of availing the benefits under these orders so as to reach their pension sanctioning authority by 31st March, 1999. The advertisement should also contain a specific mention about the office from where the application forms are available and to which office the pensioners/ family pensioners are required to apply.

ANNEXURE-I

CONSOLIDATED ENHANCED FAMILY PENSION W.E.F. 01.01.1996

(i) Date of retirement31.01.1990
(ii)Scale of pay3000-4500
(iii)Pay last drawn3100
(iv)Family pension admissible at the rate in forceRs.600
(v)Enhanced family pension (before 01.01.1996)Rs.1250 (will be limited to pension if pension is less than Rs.1200 depending on his qualifying service or 50% of his last pay whichever)
(vi)Consolidated Family Pension (terms of OM dated 27.10.1997) 
 (a)normal rateRs.1838
 (b)consolidated enhanced family pensionRs.3626
(vii)(a)Family pension admissible @ 30% of pay at (iii) aboveRs.930
 (b)Enhanced family pensionRs.1550 (by limiting to 50% of pay or to lesser amount of pension if pension is less than this amount as per Rule 54(3) of CCS (Pension) Rules, 1972)
(viii)(a)Addl. Family pension admissible on 01.01.1996930-600 = 330
 (b)Enhanced addl. family pension1550-1200 = 350
(ix)(a)Total family pension admissible (normal rate) on 01.01.19961838 + 330 = 2168
 (b)Total enhanced family pension on 01.01.19963626 + 350 = 3976*

* Subject to updation as per ceilings on pension and family pension prescribed by the Government from time to time.   

Download Railway Board Circular RBE No.08/1999

Forward reference ⇒ RBE No.76/2022,

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