CAT directs Railways to pay family pension, death gratuity
The Central Administrative Tribunal has given an interim order directing the Railways to pay gratuity and family pension to the families of those employees who died after joining service on or after January 1, 2004.
Chennai: The Central Administrative
Tribunal has given an interim order directing the Railways to
pay gratuity and family pension to the families of those
employees who died after joining service on or after January
It also directed payment of extraordinary pension or
invalid pension to all employees who joined service on or
after that date.
The Madras Bench of the CAT, comprising members K
Elango and R Satapathy, gave the order following applications
filed by Dakshin Railway Employees Union and a Southern
Railway employee challenging the new pension scheme which has
withdrawn the defined pension, family pension, invalid
pension, gratuity and PF hitherto available to all Railway
The Union represents Group C and D employees of
Southern Railway Under the Ministry of Railways.
Their grievance was that the Union Government had
deprived them of all existing retirement benefits of pension,
family pension, gratuity and PF which was until December 31,
2003 available to railway employees by an amendment.
The applicants submitted that all employees who
entered service from January 1, 2004 are affected by the
They alleged that by a series of administrative
actions, unsupported by legislation or Rules, the Government
introduced a "farcical" pension scheme, under which it
has absolved itself of its constitutional obligations to pay
pension and retirement benefits to its employees.
The applicants sought a direction to the Union
Government to grant employees who joined service on or after
January one 2004, all retirement benefits payable under the
State Railway Provident Fund Rules,the Railway Service Pension
Rules 1993 and the Railway Service (Commutation of Pension)
Rules 1993 with retrospective effect from the date with all
arrears, interest and exemplary costs.
The applicants sought an interim order restraining
Railways Ministry from transferring the pension fund
accumulations of employees appointed on or after January 1
2004 including government contributions with interest from out
of the public account of the Railways to the Bank of India or
any other bank or agency.
They also sought an interim order directing payment of
gratuity and family pension to families of employees who died
after joining service on or after January 1 and extraordinary
pension or invalid pension to all employees who joined service
on the said date as per Railway Service Pension Rules 1993.
The matter was listed for further hearing on June 1.