Ministry of Railways letter to DoPT regarding Counting of Service Paid from Contingencies With Regular Service For Retirement Benefits is reproduced below.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
New Delhi, dated 25.11.2014
Sub: Counting of service paid from contingencies with regular service for retirement benefits of employees who have put in such service.
The undersigned is directed to refer to Ministry of Finance (Department of Expenditure’s O.M. No. F-12(1)-EV/68 dated 14.5.68 regarding counting of service paid from contingencies with regular service for determining the qualifying service for the purpose of grant of retirement benefits. The instructions contained in Ministry of Finance’s OM. ibid have been adopted for implementation the Railways.
2. in terms of these instructions, only 50% of the temporary status casual labour service rendered before absorption in regular employment is treated as qualifying service for the purpose of grant of retirement benefits. This provision has been incorporated in Rule 31 of Railway Services (Pension) Rules, 1993.
3. It has been represented by the Staff side that there are certain shortcomings in these instructions which are causing severe loss to such staff. These are:-
(i) the gap between the date of engagement as casual labour and date of conferment of temporary status has been very wide as against the normal 120/360 days on the expiry of which the status should have been conferred;
(ii) the gap between the date of conferment of temporary status and the date of screening for regular absorption has been wide because of the constraint of non-availability of vacancies; and
(iii) there has also been a gap ranging from one year to more than three years between date of screening and date of actual absorption due to administrative delay.
4. The shortcomings highlighted above are peculiar to the Railways. in view of the absolute number of casual labour involved and the consequent managerial problems coupled with the constraint only 50% of temporary status casual labour service being allowed to be counted as qualifying service, a number of casual labour either are ineligible for pension for want of requisite qualifying service of ten years or are getting a very meager amount of pension. This puts them to a great hardship.
5. In view of the above, the Ministry of Railways is of the view that the existing condition of only 50% of temporary status casual labour service being counted as qualifying service needs to be liberalized so that such staff are in a position to earn a reasonable amount of pension on their retirement say, 2/3rds of full pension, if not full pension. it would, therefore, be necessary to modify the existing condition to provide that 100% of temporary status casual labour service will be allowed to be reckoned for the purpose of determining the qualifying service for grant of pensionary benefits.
6. Ministry of Finance are requested to consider the matter to modify their O.M. dated 14.5.68 to provide for 100% of temporary status casual service rendered before absorption in regular employment being treated as qualifying service for the purpose of grant of pensionary benefits.
7. This issues with the concurrence of the Finance Dte. of the Ministry of Railways.
Director Establishment (N)II