Pension Rule No.63: Compensation Pension

63. Compensation Pension:-

(1)   If a railway servant is selected for discharge owing to the abolition of his permanent post, he shall, unless he is appointed to another post the conditions of which are deemed by the authority competent ot discharge him, to be at least equal to those of his own have the option –

(a)   Of taking compensation pension to which he may be entitled for the service he had rendered, or

(b)   Of accepting another appointment on such pay as may be offered and continuing to count his previous service for pension.

(2) (a)     Notice of at least three months shall be given to a railway servant in permanent employment before his services are dispensed with on the abolition of his permanent post.

(b)   Where notice of at least three months is not given to the railway servant and he has not been provided with other employment on the date on which his services are dispensed with, the authority competent to dispense with his services, may sanction the payment of a sum not exceeding the pay and allowances for the period by which the notice actually given to him falls short of three months.

(c)   No compensation pension shall be payable for the period in respect of which he received pay and allowances in lieu of notice.

(3)   In case a railway servant is granted pay and allowances for the period by which the notice given to him falls short of three months and he is re-employed before the expiry of the period for which he has received pay and allowances he shall refund the pay and allowances so received pay and allowances he shall refund the pay and allowances so received for the period following his re-employment.

(4)   If a railway servant who is entitled to compensation pension accepts instead another appointment under the railways and subsequently becomes again entitled to receive a pension of any class, the amount of such pension shall not be less than what he could have claimed if he had not accepted the appointment.