The Railway Board under the Ministry of Railways on October 7 has issued a clarification regarding pension benefits for retired employees.
This follows a recent Supreme Court interim order related to the notional increment due on July 1 and January 1 for those who retired on June 30 or December 31.
The Supreme Court’s order aims to resolve confusion about how pension benefits are calculated. The court stated that from May 1, 2023, pensions should include an additional increment for eligible retirees.
However, no additional payments will be made for periods before this date.
For those who have previously filed petitions and won, their pensions should also include this increment. Yet, if their case is still under appeal, these orders may not apply until a final decision is reached.
The Railway Board has advised that while they await further guidance from the Department of Personnel and Training, all zonal railways and production units should prepare to follow the Supreme Court’s recent instructions.
They are also advised to file revised applications in pending cases to ensure compliance with the court’s directives.
This clarification assumes significance for ensuring that pension payments are made accurately and fairly to retired railway employees, preventing future legal disputes.
The Secretary of the National Council (Staff Side) Joint Consultative Machinery (JCM) recently also requested the Department of Personnel and Training (DoPT) and the Department of Expenditure (DoE) to issue a general order for granting a notional increment to central government employees for pension calculation purposes.
This appeal also followed a recent Supreme Court judgment aimed at benefiting retirees.
In a letter referencing the Supreme Court ruling dated September 6, 2024, the secretary, Gopal Mishra, emphasised the need for a comprehensive government order that would apply to employees who retired on the last working day of June or December.