RBE No. 144/1987: Settlement Dues – Welfare Inspector

No.E(G)87 PN1/1, dated 05.06.1987

Sub: Expeditious Payment of settlement Dues to the retired Railway employees – Counseling by welfare/ personnel Inspectors.

The question of expeditious payment of settlement dues to the retired Railway employees has been engaging the constant attention of the Ministry of Railways at the highest level and a number of circular instructions have been issued from time to time to the Zonal Railways on the subject. In this connection attention is invited to Member Staff’s D.O. letter of even number dated 29.01.1987 to all GMs including Production Units wherein it was desired that it should be ensured that the Welfare/ Personnel Inspectors are detailed to render necessary council to retiring staff not only in filling the forms but also in advising them as to the various types of dues which they are entitled to on retirement. A copy of pamphlet titled ‘Facts about Pension’ prepared by NE Railways was also sent to the Railways for bringing out a similar pamphlet by them. A feedback in this regard is still awaited from the Zonal Railways.

In the meeting held during his visit to Secunderabad (SC Railway) on 09.02.1987, MOS(R) has observed as under:

“Services of Welfare Inspector should be utilized for counselling staff on the verge of retirement and rendering assistance. Every Welfare Inspector must see that he counsels at least one pre-retiring/ retired staff per day.”

In this connection a copy of SC Railway’s Circular No.P 721-Co-ord, dated 12.09.1985 is sent herewith for adoption on your Railway suitably. Necessary action in the matter may please be taken accordingly with a view to ensuring that payment of settlement use is made immediately after the retirement.

A report on the action taken may please be sent to this office.

SC Railway’s Circular No.P 721-Co-ord, dated 12.09.1985

Sub: Expeditious payment of Settlement Dues.

1.     A number of circulars have been issued from time to time stressing the need for timely settlement of retirement dues within the three months limit. A list of these important circulars is given below:

(1)   Serial Circular No.39/83, dated 31.03.1983,

(2)   Circular No.P(R)626/II, dated 10.11.1983,

(3)   Serial Circular No.186/83, dated 29.12.1983,

(4)   Circular No.P(R)621, dated 07.01.1985,

(5)   Serial Circular No.36/85, dated 13.03.1985,

(6)   Serial Circular No.39/85, dated 15.03.1985,

(7)   Serial Circular No.47/85, dated 03.04.1985,

(8)   CPO’s D.O.No.P(R)626/II, dated 20.04.1985,

(9)   GMs D.O.No.P(R)626/II, dated 05.05.1985.       

2.     In spite of these instructions being reiterated in a number of ways and on a number of occasions, it has come to the notice that in a number of cases, payment of settlement dues, particularly in CNR cases, to the eligible family members of the deceased Railway employee is delayed very much for a number of reasons. One of the reasons, it is learnt, is the delay in receipt of information regarding the death of the Railway servant. In one of the recent inspections notes, the General Manager has observed as under:-

“In most of the cases, none of the officials of the Welfare Branch had met the windows. It is a moral responsibility to provide immediate succor to the window and therefore as soon as a Railway employee dies while in service, the Welfare Inspector within whose jurisdiction the station lies, should meet the widow and arrange for making payment of all dues, as expeditiously as possible. Progress of such cases should be watched personally by the Sr.DPO/ DPO at the Divisional Headquarters.”

3.     The important role of the Welfare Organization to provide immediate succor to the members of the bereaved family of the railway employee cannot be overstressed. An analysis made for the whole Railway shows that on an average 250 cases come up for settlement every month, out of which about 150 are NR cases and balance 100 are ONR cases. Since ONR cases are very large constituting nearly 40% of the total cases and they are unexpected, special attention will have to be paid to them to ensure quick settlement. To facilitate swift action in such cases, the following guidelines are laid down:-

(i) When an employee dies, while in service, the concerned Supervisory Official should immediately report the matter to the Sr.DPO/ DPO and the section Welfare Inspector through a Control message. This should be followed by a letter to Sr.DPO/ DPO with a copy to Section Welfare Inspector.

(ii) Sr.DPO/ DPO should ensure that the Section Welfare Inspector or in his absence any other Welfare Inspector contacts the family members of the deceased employee immediately and provide every possible assistance in obtaining the death certificate, filling up of the settlement forms and submit them to the Settlement Section. Even if there is delay in getting all the forms filled, the CGIS form should be got filled up on priority. The Section Welfare Inspector should also render all possible assistance to the widow and other members of the bereaved family till they get all their Settlement dues. 

(iii) The Welfare Inspector should also find out from the family members of the deceased employee as to whether the widow or the ward of the deceased employee desires to take up any employment on compassionate grounds. If so, the application from the concerned family member should be obtained with the necessary certificates along with full details of the family. This should be submitted to the office along with the enquiry report for processing the case for appointment on compassionate ground. If the children are minor and the widow cannot take up employment, suitable advice should be given by the Welfare Inspector as to when they should apply for compassionate ground appointment.

(iv) Immediately on receipt of the information regarding the death of an employee, Sr.DPO/ DPO should instruct the concerned staff of the Settlement Section to enter the name in the Master Register and also give information to the Settlement Section of the Accounts Office so that they can bring the PF Account with interest, CGIS amount with saving fund amount etc. up to date. 

(v) As the family of the deceased employee is suddenly denied of the steady monthly income of the employee, the settlement dues be arranged very quickly. But in the case of deceased employees, however quick the SRs, leave account, PF account etc. are kept up to date till the end of the previous year, it will take some time to bring the accounts up to date for the balance period and for arranging the payment. Hence, it is essential that the insurance payment is arranged as early as possible, as calculation for the same is very simple. Since the intimation of the death of the employee is communicated immediately to the Accounts Office, the calculation for the amount due including savings fund portion should be finalized and kept ready by the Accounts Office. Simultaneously, the Personnel Branch should take the following action. It should be checked up as to whether the deceased employee had executed any CGIS nomination. Simultaneously, his family particulars given for pass declaration, PF Nomination etc. should also be connected and checked up. As long as CGIS nomination and the Family particulars tally in all declarations, there should normally be no delay in arranging the payment. Hence, the payment of insurance amount should be arranged as soon as all the settlement forms are duly filled and submitted by the widow/ family members of the deceased employee in any case, not later than 14 days from the date of submitting the insurance payment form completed in all respect. 

4.     (i)    Both Personal and Accounts Branches should open separate Master Registers for settlement cases financial year wise. In these, the names of the employees, who are anticipated to retire, should be written down in advance month wise, leaving adequate spare pages in between 2 months so that as and when information about the demise or medical incapacitation or voluntary retirement of employees etc. is received, their names can be added under the relevant month. As the number of SRPF cases will be very few, a separate register should be maintained for the same. Against each employee, a number of column should be opened for watching the settlement of each item like PF (own contribution), pension, commutation, DCRG, insurance amount, leave salary withheld amount, bonus, arrears of ADA, pension revision, bonus payment becoming due in the next year etc. Sufficient space is to be given in each column so that against each item the dates of sending the bills to the Accounts Department with CO6 numbers and date of passing by the Accounts Department with CO7 number can be entered for ready reference. To ensure that no omission takes place and also for easy reconciliation, both Personnel and Accounts Offices should maintain separate registers and reconcile them every month to ensure that no case is pending for more than 3 months except in a few withheld amount cases. Even in the case of withheld amount cases, except in cases, where quarters are not vacated, or commercial debits are not finalized, the settlement should be done within six months.

(ii)    It should be remembered that whenever an employee retires/ dies, after first April, bonus becomes due for him for the previous year when the same is declared in October of that year and again for proportionate part of the bonus payment for financial year, in which he retires, when the bonus is declared in October of the next year. Hence, in the case of bonus and arrears of ADA, every employee who retires becomes due for one or two bonus payments or ADA payments, as the case may be. Hence, as indicated in the previous para, suitable columns should be opened against each retiring employee to indicate these items that would become due in course of time. A special watch should be kept for clearance of these amounts as and when they become due and paid along with all other serving staff, as such additional work are already covered by payment of honorarium.

(iii)   The success of achieving quick payment of settlement dues will entirely rest upon as to how satisfactorily the system of advances review of the 60% normal retirement cases works. Every effort should be made by the Personnel Branch to stand the cases at least 6 months in advance to the Accounts Branch and the Accounts Branch should return the same 2 months prior to actual retirement. This must be done by creating separate advance review sections in the Settlement Sections of both Personal and Accounts Branches.

(iv)   The publishing of the names of the staff, who are due to retire, in the gazette one year in advance should be done regularly without fail and omission. As already indicated in Serial Circular No.126/84, dated 10/12.10.1984, the details of places, where they had worked during the last 5 years should also be given in the case of Operating and Commercial staff, who are liable for Commercial debits to be raised against them. The Sr.DPO/ DPO should also send separately details of these staff to Sr.DCS/ DCS. Sr.DCS/ DCS should ensure that any outstanding/ disputed debits against these retiring staff up to the last year are finalized quickly so that the same can be recovered from their pay, before they actually retire. Further, this will help to narrow down the period which Commercial debits have to be finalized to only one year. Since the period is narrowed down, Sr.DCS/ DCS should be able to finalize the same within 6 months from the date of retirement. Sr.DCS/ DCS should also hold monthly meeting with Dy.CAO(TA)/ SAO(TA) to clear the outstanding cases so that the retired staff are not put to unnecessary difficulties. In this connection, attention is invited to Paras 323(iv)(b) and (c) of MRP and Railway Board’s letter No.E(G)82 SI.1/1, dated 05.04.1982 (Sl. Circular No.70/82), wherein it is clearly indicated that after the lapse of the specified period, the cash deposit or surety or gratuity withheld for Government dues should be released.

(v)   In this connection, attention is invited to Board’s letter No.E(G)83-LE1-3, dated 08.08.1985 reiterating the instructions issued in letters No.E(G)70 LE1-4, dated 20.08.1970 and 02.01.1971 (Serial Circular No.135/85). It has already been stressed that the SR and the leave accounts should be brought up to date and while doing so, priority should be given to the SRs of the employees over 55/50 years old. The Board have already taken a deliberate decision that verification of leave account will be restricted to the last 3 years in all cases, including for certifying for qualifying service. However, in case there are considerable period for which leave accounts are not available and efforts to trace the particulars of leave availed from the units are not successful, the procedure laid down under para 1016 of MRPR for verification of missing leave account by Dy, HODs should be restored to without delaying the case beyond the target period of 3 months. This practice should be adopted for setting the ONR cases also. The responsibility for adopting this procedure, when other of action taken fail, will rest with the Personnel Branch and in case of any difficulties, the matter should be brought to the notice of the Head of the office. 

5.     In view of the importance being attached for prompt payment of settlement dues, DRMs should review the position in the monthly Divisional Offices’ meeting. Further, Sr.DPO/ DPO, Sr.DAO/DAO, Sr.DCS/DCS should review the position in detail once a month to ensure that no cases are unduly delayed and also to decide the course of action in very difficult cases to enable quick settlement.

Download Railway Board Circular RBE No. 144/1987

Forward reference RBE No.

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