Indian Railways Sixth Pay Commission: Persons re-employed in Railway Service after retirement

The latest news and update from the Sixth Pay Commission is from the Indian Railways and is regarding the persons re-employed in Railway Service after retirement. Below, we present the text as it appears on the notification. Though utmost care has been taken to replicate the text as it is, but E&OE.

The General Managers/ CAO(R),
All Indian Railways & PUs
(As per standard mailing list)
Dated the 30-04-2009.

Sub: Applicability of RS(RP) Rules, 2008 to persons re-employed in Railway Service after retirement and whose pay is debitable to Railway Estimates.

Persons re-employed in Railway service after retirement have been excluded from the purview of the Railway Services (Revised Pay) Rules, 2008 vide Rule 2 (2) (vii) thereof. The question of extension of the benefit of the revised pay rules to these persons and the procedure to be followed for fixing their pay in the revised scales has been considered by the Government. The President is pleased to decide that, in partial, modtfication of the Rule 2(2) (vii) of the Railway Services (Revised Pay) Rules, 2008, the provisions of these rules shall apply to such persons also who were in re-employment on Ist January, 2006, subject to the orders hereinafter contained. This decision will cover all Railway servants re-employed on Railways other than those employed on contract whether they have retired with or without a pension and /or gratuity or any other retirement benefits, e.g. contributory fund etc. from a civil post or from the Armed Forces.

2(I) The initial pay of a re-employed Railway servant who elects or is deemed to have elected to be governed by the revised pay scale from the 1st day of January 2006 shall be fixed in the following manner namely:-
According to the provisions of Rule 7 of the RS(RP) Rules, 2008, if he is -
(i) a Railway servant who retired without receiving a pension, gratuity or any other retirement benefit and
(ii) a retired Railway servant who received pension or any other retirement benefits but which were ignored while fixing pay on te-employment.

2(H) The initial pay of a re-employed Railway servant who retired with a pension or any other retirement benefit and whose pay on re-employment was fixed with reference to thes&benefits or ignoring a part thereof, and who elects or is deemed to have elected to be governed by the revised scales from the 1st day of January, 2006 shall be fixed in accordance with the provisions contained in Rule 7 of the Railway Services (Revised Pay) Rules, 2008. In addition to the pay so fixed, the re-employed Railway servant would continue to draw the retirement benefits he was permitted to draw in the prerevised scales, as modified based on the recommendations of the Sixth Central Pay Commission, orders in respect of which have been issued separately by the Department of Pension & Pensioners Welfare. However, an amount equivalent to the revised pension (excluding ignorable portion of pension, wherever permissible), effective from 1 1 2006 or after, shall be deducted from his pay in accordance with the general policy of the Government on fixation of pay of re-employed pensioners. Annual increments^j/ill be allowed in the manner laid down in Rule 10 of Railway Services (Revised Pay) Rules 2008, on the entire amount of pay as if pension had not been deducted.

3. Reemployed persons who become eligible to elect revised scale in accordance with these orders should exercise their option in the manner laid down in Rule 6 of the Railway Service (Revised Pay) Rules, 2008 within three months of the date of issue of these orders or in cases where the existing scale of pay of the posts held by them are revised subsequent to the issue of these orders* within three months of the date of orders/ notification revising the scales.

4. Where a re-employed Railway servant elects to draw his pay in the existing scale and is brought over to revised scale from a date later man the 1st day of January, 2006, his pay from the later date in the revised scale shall be fixed in accordance with the provisions of Rule 11 of the Railway Services (Revised Pay) Rules, 2008.

5. Further, the existing ceiling of Rs.26000/- for drawal of pay plus gross pension on reemployment is enhanced to Rs.80000/, the maximum salary payable to the ex-officio Secretary to the Government of India under Railway Services (Revised Pay) Rules, 2008.

6. The President is also pleased to enhance the ignorable part of pension from Rs.l500/~ to Rs.4000/- (Rupees, four thousand) in the case of Commissioned Service officers and civil officers holding Group 'A* posts who retire before attaining the age of 55 years. The existing limits of civil and military pensions to be ignored in fixing the pay of re-employed pensioners will, therefore,, cease to be applicable to cases of such pensioners as are re-employed on or after 1.1,2006. In the cases of persons who are already on re-employment, the pay may be fixed on the basis of these orders with effect from 1.1.2006, provided they opt to come under these orders. If they so opt, their terms would be determined afresh as if they have been re-employed for the first time from 1.1.2006. The option should be exercised in writing within three months from the date of issue of these orders. The option once exercised is final.

7 These orders shall take effect from 1.1.2006.

8. This issues with the concurrence of Finance Directorate of the Ministry of Railways