CAT Orders Railways To Rework Late Worker’s Pension, Counting Half Of Casual Service Before Temporary Status

The original applicant, a former Works Mate with Southern Railway, retired on 31 July 2012. The Railway had counted his regular service from 10 March 1997 to retirement in full, and 50% of his temporary-status casual-labour service from 1 January 1981 to 9 March 1997, giving him 23.5 years of qualifying service. He claimed that service from his initial engagement on 23 April 1973 should also be counted and sought revised pensionary benefits and MACP benefits.

The Tribunal initially allowed the application by relying on a Railway Board communication, but later set aside that order on review and restored the application for fresh consideration.

The applicant died while the review proceedings were pending; his wife and daughter were impleaded.

Under Rules 20 and 31 of the Railway Services (Pension) Rules, 1993, as interpreted in Union of India v. Rakesh Kumar, AIR 2017 SC 1691, 50% of a casual worker’s service both before and after obtaining temporary status is reckonable for pension, up to regularisation; regular service is counted in full.

The Tribunal also considered Railway Board communication RBE 36/2010, which provides that the entire temporary-status service of substitutes, followed by regularisation without a break, may count towards the 10-, 20- and 30-year thresholds under the MACP Scheme.

The communication was relevant to assessing MACP entitlement, but the Tribunal directed the respondents to examine the applicant’s eligibility rather than itself determine that entitlement.

The service certificate showed that the Railway had omitted all service before 1 January 1981, when the applicant was granted temporary status.

The service card and other records, together with the advancement of his temporary-status date from 1 January 1983 to 1 January 1981, supported the Tribunal’s view that he had continuous service before temporary status was conferred.

Applying Rakesh Kumar, the Tribunal found that this earlier casual service also had to be considered at 50% for pension purposes.

Because the qualifying-service calculation required correction, and the MACP communication could bear on the assessment, the respondents were directed to reassess both matters.

The respondents were directed to rework the applicant’s qualifying service, assess the resulting additional benefits—including any MACP entitlement—and disburse benefits found due within 120 days of receiving the order.

The Tribunal directed the respondents to show maximum leniency given the possibility that old records might no longer be available.

No costs were ordered.