Pension Rule No.9: Right Of The President To Withhold Or Withdraw Pension

9.    Right Of The President To Withhold Or Withdraw Pension:-

(1)      The President reserves to himself the right of withholding or withdrawing a pension or gratuity, or both, either in full or in part, whether permanently or for a specified period, and of ordering recovery from a pension or gratuity of the whole or part of any pecuniary loss caused to the Railway, if, in any departmental or judicial proceedings, the pensioner is found guilty of grave misconduct or negligence during the period of his service, including service rendered upon re-employment after retirement;

Provided that the Union Public Service Commission shall be consulted before any final orders are passed.

Provided further that where a part of pension is withheld or withdrawn, the amount of such pension shall not be reduced below the amount of rupees three thousand five hundred per mensem.

[Authority: RBE No.97/2013, No.2011/F(E)III/1(1)9, 23.09.2013]

(2)      The departmental proceedings referred to in sub-rue (1):-

(a)      If instituted while the railway servant was in service whether before his retirement or during his re-employment, shall after the final retirement of the railway servant, be deemed to be proceeding under this rule and shall be continued and concluded by the authority by which they commenced in the same manner as if the railway servant had continued in service.

Provided that where the departmental proceedings are instituted by an authority subordinate to the President, that authority shall submit a report recording its findings to the President;

(b)      If not institute while the railway servant was in service, whether before his retirement or during his re-employment:-

(i)    Shall not be instituted save with the sanction of the President;

(ii)    Shall not be in respect of any event which took place more than four years before such institution; and

(iii)   Shall be conducted by such authority and in such place as the President may direct and in accordance with the procedure applicable to departmental proceedings in which and, order in relation to the railway servant during his service.

(3)      In the case of a railway servant who has retired on attaining the age of superannuation or otherwise and against whom any departmental or judicial proceedings are instituted or where departmental proceedings are continued under sub-rule (2), a provisional pension as provided in rule 10 shall be sanctioned.

[Authority: RBE No.100/2000, No.F(E)III/99/PN 1/(Modification), 23.5.2000]

(4)      Where the President decides not to withhold or withdraw pension but orders recovery of pecuniary loss from pension, the recovery shall not ordinarily be made at a rate exceeding one third of the pension admissible on the date of retirement of a railway servant.

(5)      For the purpose of this rule:-

(a)   Departmental proceedings shall be deemed to be instituted on the date on which the statement of charges is issued to the railway servant or pensioner, or if the railway servant has been placed under suspension from an earlier date, on such date; and

(b)   Judicial proceedings shall be deemed to be instituted:-

(i)  In the case of criminal proceedings, on the date on which the complaint or report of a Police Officer, of which the Magistrate takes cognizance, is made; and

(ii) In the case of Civil proceedings, on the date the plaint is presented in the Court.

9.    Power to withhold or withdraw pension.-

(1) (a) The President, in the case of a pensioner who retired from a post for which the President is the appointing authority;

(b) the Railway Board, in the case of a pensioner who retired from a post for which an authority subordinate to the President is the appointing authority, may, by order in writing, withhold a pension or gratuity, or both, either in full or in part, or withdraw a pension in full or in part, whether permanently or for a specified period, and order recovery from a pension or gratuity of the whole or part of any pecuniary loss caused to the Railway, if, in any departmental proceedings or judicial proceedings, the pensioner is found guilty of grave misconduct or negligence during the period of service, including service rendered upon re-employment after retirement:

Provided that the Union Public Service Commission shall be consulted before any final orders are passed by the President under this sub-rule:

Provided further that where a part of pension is withheld or withdrawn, the amount of such pension shall not be reduced below the amount of minimum pension under rule 69.

(2) (a) The departmental proceedings referred to in sub-rule (1), if instituted while the railway servant was in service whether before his retirement or during his re-employment, shall, after the final retirement of the railway servant, be deemed to be proceedings under this rule and shall be continued and concluded by the authority by which they were commenced in the same manner as if the railway servant had continued in service:

Provided that where the departmental proceedings are instituted by an authority subordinate to the Competent Authority to pass order under sub-rule (1), that authority shall submit a report recording its findings to the said competent authority.

(b) Notwithstanding anything contained in sub-rule (1) and clause (a), the departmental proceedings instituted under rule 11 of the Railway Servants (Discipline and Appeal) Rules, 1968, while the railway servant was in service and continued after retirement, shall have no effect on the pension and gratuity of the pensioner.

(c) The departmental proceedings, if not instituted while the railway servant was in service, whether before his retirement, or during his re-employment, –

(i) shall not be instituted except with the sanction of the authority competent to pass order under sub-rule (1) in Format 1;

(ii) shall not be instituted in respect of any event which took place more than four years before such institution; and

(iii) shall be conducted by such authority in such place as the authority competent to pass order under sub-rule (1), may direct and in accordance with the procedure applicable to departmental proceedings in which an order of dismissal from service could be made in relation to the railway servant during his service:

Provided that for the purpose of instituting departmental proceedings under this sub-rule, a memorandum of charges shall be communicated to the pensioner concerned in Format 2.

(d) where a full-fledged inquiry is conducted giving an opportunity to the such railway servant to show cause during the proceedings in accordance with the Railway Servants (Discipline and Appeal) Rules, 1968, any further opportunity to show cause would not be necessary before taking action in same matter under sub-rule (1).

(3)  In the case of railway servant who has retired on attaining the age of superannuation or otherwise and against whom any departmental or judicial proceedings are instituted or where departmental proceedings instituted under rule 9 of the Railway Servants (Discipline and Appeal) Rules, 1968 are continued under sub-rule (2), a provisional pension as provided in rule 10 shall be sanctioned.

(4)  Where the authority competent to pass order under sub-rule (1) decides not to withhold or withdraw pension but orders recovery of pecuniary loss from pension, the recovery shall not ordinarily be made at a rate exceeding one-third of the pension admissible on the date of retirement of a railway servant.

(5)  (a) No appeal shall lie against any order made by the President under this rule.

(b) An appeal against an order under sub-rule (1), passed by an authority other than the President, shall lie to the President and the President shall, in consultation with the Union Public Service Commission, pass such orders on the appeal as he deems fit.

(6) The President may at any time, either on his own motion or otherwise call for the records of any inquiry and revise any order made under these rules, after consultation with the Union Public Service Commission, and may confirm, modify or set aside the order; or remit the case to any authority directing such authority to make such further enquiry as it may consider proper in the circumstances of the case or pass such other order as he may deem fit:

Provided that no order enhancing the amount of pension or gratuity to be withheld or withdrawn, shall be made by the President unless the railway servant concerned has been given an opportunity of making a representation against the order proposed and except after consultation with the Union Public Service Commission.

(7)  The President may at any time, either on his own motion or otherwise review any order passed under these rules, where extenuating or special circumstances exist to warrant such review or when any new material or evidence which could not be produced or was not available at the time of passing the order under review and which has the effect of changing the nature of the case, has come, or has been brought, to his notice:

Provided that no order enhancing the amount of the pension or gratuity to be withheld or withdrawn, shall be made by the President unless the railway servant concerned has been given an opportunity of making a representation against the order proposed and except after consultation with the Union Public Service Commission.

Explanation.- For the purpose of this rule,-

(1) (a) the departmental proceedings shall be deemed to be instituted on the date on which the statement of charges is issued to the Railway servant or pensioner, or if the railway servant has been placed under suspension from an earlier date, on such date; and

(b) the judicial proceedings shall be deemed to be instituted,-

(i) in the case of criminal proceedings, on the date on which the complaint or report of a police officer, of which the Magistrate takes cognisance, is made; and

(ii) in the case of civil proceedings, on the date the suit is filed in the court.

(2) the expression “misconduct” means any act done or omitted to be done by the pensioner, during the period of service, including service rendered upon re-employment after retirement, and which was in violation of any provisions of the Railway Services (Conduct) Rules, 1966, for which action under Railway Servants (Discipline and Appeal) Rules, 1968 could be taken during the period of service.

(3) the action under sub-rule (1) may be taken, if the pensioner is found guilty of,-

(i) any corrupt practices during service;

(ii) any misconduct whether in relation to the performance of official duty or otherwise; and

(iii) any misconduct whether resulting in pecuniary loss to the Government or otherwise.

(4) the expression “civil proceedings” mean such proceedings in respect of a civil suit filed by the Government only.

(The above Rule 9 amended vide No.2023/F(E)III/PN1/1, dated 24.06.2024 (RBE No.55/2024) and published in the Gazette of India, Extraordinary, Part-II, Section-III, Sub-section-(i), No.323, dated the June 25, 2024 G.S.R. 346(E).

Forward reference ⇒ RBE No.55/2024, G.S.R.346(E), RBE No.68/2024,