Friday, 1 October 2021

Establishment Rule : Retirement and benefits


Chapter 9. RETIREMENT under establishment rule

Retirement means, the Railway servant ceasing to be in service. The date of retirement will be based on the date of birth of railway servant recorded in the Service Register/Record or Classified List of Gazetted Establishment. A railway servant whose date of birth is the first

of a month, shall retire from service on the afternoon of the last day of the preceding month, on attaining the age of sixty years, as the case may be. The various nodes by which the service of railway servant may come to an end are :- 


a) Normal retirement on Superannuation.

b) Retirement due to medical invalidation.

c) Premature retirement ordered in the public interest, and

d) Premature/Voluntary retirement on his/her own option.

Normal Retirement :

(i) Every railway servant shall retire from service on attaining Superannuation i.e. the age of 60 years from 13.5.1998. 

 (ii) Railway servant in Group ' D' service or post who, prior to 1st December, 1962 was entitled to serve up to the age of 60 years, shall retire from service on the afternoon of the last 

day of the month in which he attains the age of 60 years.

(iii)Principals, Vice-Principals, School Teachers, Laboratory Assistant Librarians working in the Railway Schools and colleges who has joined service prior to 1-4-1989 shall retire from service on the afternoon of the last day of the month in which they attain the age of 60 years.

Competent authority may a Railway servant under suspension to continue in service beyond the date of his retirement in which case he shall not be permitted to retire from service and shall be retained in service till such time as required by that authority. Such

decisions shall be taken, on the merits of each case and only in those cases where the prospect of dismissal is nearly certain and there is likely of denying the employee Government contribution, S.C. to P.F/Retirement Gratuity.



Medical Invalidation :


Railway servants, both permanent and temporary, who are declared medically unfit for service in the post held by them, but are declared fit for service in the posts which fall in a

lower medical category are eligible to be continued in service in the posts requiring a lower medical standard. However, where in the case of temporary employees becoming medically decategorised on account of circumstances not arising out of and in the course of employment 

alternative employment is not found within the period of leave/extenuation of

leave/extraordinary leave granted to railway servants as admissible under the rules, the employees should be discharged from service. In cases, where the offer of alternative employment has been refused the railway servants concerned should retired. 


Premature Retirement :

Premature retirement means the retirement of an employee ahead of attaining the age of superannuation either on his or her own volition or as a result of an order passed by the competent authority in public interest. This is distinct from voluntary retirement sought by the railway servant and compulsory retirement ordered as a penalty, under the Railway Discipline and Appeal Rules. 

The appointing authority has the right to retire in the public interest a railway servant, falling in one or the other of the following categories, from the service by given him/her a notice of not less than three months in writing or by giving him/her pay and allowances in lieu there of : 

(a) A railway servant in Group A or B service or post working in a substantive or temporary capacity who has entered Government service before the age of thirty five years, after he has attained the age of fifty years;

(b) Group A & B Railway servants who has entered service after the age of fifty five

years, after attaining the age of fifty five years.

(c) Railway servants belonging to Group "C" AND "D" after their attaining the age of fifty five years. 

(d) Pensionable Railway servants after their completing thirty years of qualifying service; and

(e) Non-pensionable railway servants after their completing thirty years of service.

Railway servants have also a reciprocal right to seek premature retirement from service by giving in writing a notice of not less than three months to the appropriate authority on the same terms as set out in above para.  

An order requiring/permitting a pensionable railway servant to retire on completion of thirty years of qualifying service should as a rule, not be issued until after the act of completion of thirty years of qualifying service by the railway servant has been verified in consultation with the concerned Accounts Officer. 

It is open to the appropriate authority to without permission to a Railway servant under suspension, who seeks to retire prematurely by giving the requisite notice. The appropriate authority has also the right to refuse permission even if the Railway servant is placed under suspension after he has given the notice for retirement, but such right shall be exercised by the said authority before the expiry of the period of the notice given. 

No formal order of acceptance of the notice of premature retirement sought by the Railway servant, is necessary and the Railway servant will be deemed to have retired Automatically at the end o the notice period of three month. In case of Railway servant under suspension, while the appointing authority has, no doubt, the power to without permission, 

failure to communicate to the Railway servant concerned, withhold permission for them to retire will lead to their automatic retirement on the expiry of notice period.  

[R.B's No.E(P&A)I-81/RT/4 of 1.6.81 and E(P&A)I-83/RT/11 of 3.1.83]

 The notice of three months to retire a Railway servant can be given while the Railway servant is on leave including extra-ordinary leave. 

[R.B's No. PC-67/RT/9 of 8.9.67]

Voluntary Retirement :

1. A. Railway servant may retire voluntarily after a minimum qualifying service of  20 years. In such case the weightage of maximum period of five years shall be granted as an addition to qualifying service. 

2. For voluntary retirement, a notice of three months in writing or three months' pay and allowances in lieu of such notice shall be given. 

3. While granting proportionate pension/ Special Contribution to Provident Fund to a Railway servant retiring voluntarily under the scheme, weightage up to five years shall be given as an addition to the qualifying service (irrespective of whether governed by pension rules or SRPF rules) rendered by him. The grant of weightage up to 5 years will, however, be subject to the conditions that the total qualifying service rendered by Railway servant does not in any case exceeds 33 

years and it does not take him beyond the date of superannuation.

The weightage shall be an addition to qualifying service and it will not entitle the Railway servant to any notional fixation of pay for the purpose of calculating pension, gratuity and other retirement benefits based on actual emoluments. The weightage shall

count for post retirement passes.

4. A notice less than three months may also be accepted by the appointing authority in deserving cases, and when such less than three months notice is accepted in the case of pensionable railway employees, it should be on the specific condition that the Railway servant shall not apply for commutation of a part of his pension before the expiry of the period of notice of three months. 

5. Officers seeking voluntary retirement for joining Central Administrative Tribunals, would be entitled for 5 years weightage subject to the conditions that qualifying service does not exceed 33 years and it does not take him beyond the date of superannuation.





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