Friday, April 28, 2017

Commutation of pension- clarification by Rly Bd.


RBE No. 41/2017

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No. 2016/F(E)III1(1)8                                                       New Delhi, Dated: 25.04.2017
The GMs/FA&CAOs,
All Zonal Railways/Production Units etc
(As per standard mailing list)

Sub: Clarification regarding commutation of a part of pension on retirement under Rule 67 of Railway Services (Pension) Rules, 1993.

In terms of Rule 67 of the Railway Services (Pension) Rules, 1993, at any time after a railway servant has completed twenty years qualifying service, he may, by giving notice of not less than three months in writing to the Appointing Authority retire from service. However, if the Appointing Authority is satisfied that the curtailment of the period of notice will not cause any administrative inconvenience, the Appointing Authority may relax the requirement of notice of three months on the condition that the railway servant shall not apply for commutation of a part of his pension before the expiry of the notice period of three months.

2. Recently, in a case, it has been observed that this Rule does not cater to the situation where superannuation is due within three months notice period. Notice period cannot go beyond the date of superannuation employee has more than months service at the time of seeking retirement under Rule 67, the commutation will be payable after three months but where normal superannuation will be the date to apply for commutation of a part of pension subject to fulfillment of all other conditions specified in this regard in the Railway Service (Commutation of Pension) Rules, 1993.

(SANJAY PRASHAR)
Deputy Director Finance (Estt.)lll,
Railway Board.

 RBE 41/2017


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