RBE No. 28/2008: Pension – On absorption in Autonomous Body/ PSU
No.F(E)III/2003/PN1/1, dated 03.03.2008
Sub: Terms and conditions of payment of pensionary benefits in respect of Railway Government employees absorbed in Autonomous Bodies/ Public Sector Undertaking consequent upon conversion of Government/ Railway Department/ Office into Autonomous Body/ Public Sector Undertaking – Encashment of unutilized leave of such employees.
1. In terms of sub-rule (16) of Rule 53(A) of Railway Services (Pension) Rules, 1993 (added vide Notification No.F(E)III/2003/PN1/1, dated 10.03.2005 (RBE No. 41/2005), in case of railway servants who, on conversion of a Railway Department into a Central Autonomous Body or Public Sector Undertaking, get absorbed in it and opt for pensionary benefits on the basis of combined service rendered by them in the Railways and in the PSU or Autonomous Body, the Government is required to discharge its pensionary liability by paying in lump sum as a onetime payment to the Pension Fund, the pro-rata pension or service gratuity and retirement gratuity for the service rendered till the date of absorption of the railway servants in the PSUs/ Autonomous bodies. A point has been raised as to whether in such cases in addition to lump sum pro-rata pension or service gratuity and retirement gratuity; the Railways/ Government also have to discharge liability towards leave encashment of such absorbed employees.
2. The matter has been examined in consultation with Department of Pension and Pensioners’ Welfare and it is clarified that there is no provision for payment of leave salary liabilities by the Railways/ Government at the time of absorption of the Railway/ Government servant. Encashment of unutilized leave in the credit of the absorbed employees at the time of retirement/ superannuation is to be paid from the budget of PSU/ Autonomous body.
3. It is reiterated that the clarification contained in para 2 above is applicable only in cases of those employees who get absorbed in the PSUs/ Autonomous Bodies on conversion of a Government/ Railway Department into a Central Autonomous Body or a Public Sector Undertaking and opt for pensionary benefits on the basis of combined service rendered by them in the Government/ Railways and in PSU/ Autonomous Body, not in other cases of permanent absorption.
Download Railway Board Circular RBE No. 28/2008
Forward reference ⇒ RBE No.