Indian Railways


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Chapter 8
Staff Benefit Fund

 801. A Railway Staff. Benefit Fund shall be maintained for each Indian Railway. 

 802. (1) Education of the staff and of their children when no assistance is admissible under the provisions laid down in Chapter – XXII, Section-A (Schooling facilities and educational assistance for children of Railway Servants) of Indian Railway Establishment Manual Volume-II, provided that no grant shall be made to a school which is not in accordance with any general or special order issued by the President in this behalf .  

            (2) If the Committee desire to incur expenditure on any other object which in their opinion is for the benefit of the staff, they shall refer the matter to the General Manager whose decision shall be final.  

 803. No part of the fund shall be used for the benefit of any gazetted railway servant, except as provided in Rule 805(1).

(Authority: Board’s letter No. E(W)97/FU-1/4  dated 13-10-99) 

Note.--A scholarship for study granted to the child/ward of a non-gazetted railway servant will not be withdrawn merely because the railway servant is subsequently promoted to officiate in a gazetted post, provided the student remains otherwise eligible fur the same. When, however, the railway servant is confirmed in the gazetted post. the scholarship should merely be discontinued and no recovery should be made in respect of the period from the date of confirmation to the date of issue of the Notification of confirmation. 

 804. Credits to the Fund.-To the fund shall be credited:.-  

(1) all receipts from fines; and  

(2) all receipts from forfeited Provident Fund bonuses. except forfeited bonuses of gazetted railway servants.  

805. (1) In addition to the credits to the Fund detailed in Rule 804, there shall be credited to the fund on the 1st April of each financial year an annual grant from the revenues of the Railway at a per capita rate of Rs.35.00 based on the sanctioned strength of non-gazetted Railway employees, permanent and temporary, as on the 31st March, posts charged to capital being excluded. The Fund shall be credited provisionally on the 1st April each year with an amount equal to the contribution for the previous year, the necessary adjustment being made as soon as the correct amount of the contribution has been determined. The distribution of Rs.35/- amongst different activities will be as under:

(i) General activities viz. Education, recreation, amusement, cultural, relief of distress, sickness and miscellaneous items:-






(b)Recreation other than sports




(c)Promotion of cultural Activities




(d) Relief of distress, sickness, etc.




(e) Women empowerment activities








Sports activities



Scouts activities



Recreational facilities to Officers and Supervisory staff




indigenous system of medicine including Homoeopathy






Immediate relief in times of crisis arising out of natural calamities.





Training for developing occupational skills of     physically/mentally challenged wards especially girls of railway employees.





 (Authority: Board's letters no. E(W)2007FU-1/1 dated 13th March,2008)

 (2) The Fund shall also be augmented to the extent of 50% of expenditure incurred by the respective railways on grant of scholarships to the children of railway employees for technical education of their children during the preceding year.

Note 1.-Interest at 2 percent  per annum shall be credited on the balance at the credit of the Fund lying with the Government and will be taken in reduction of the annual contribution from the revenues of the railway.

Note 2.-In the case of Chittaranjan Locomotive Works, Diesel Locomotive Works,  Integral Coach Factory, a similar contribution to this fund shall be made chargeable to  "Capital Suspense--Workshop Suspense Accounts under Performa on Cost". In the case of Wheel and Axle Plant, COFMOW Central Organisation for railway Electrification the contribution shall be  chargeable to Demand No. 16-Assets - Acquisition, Construction and Replacement.  In the case of diesel Component Works, Rail Coach Factory, the contribution to the Fund shall be made chargeable to Demand No. 16 (WMS), whereas in the case of RDSO and Railway Claims Tribunal, it shall be chargeable to Demand No.2— Miscellaneous Expenditue General.

 Note  3. Based on the overall per capita contribution of Rs.5.00 for sports activities, sports allotments shall continue to be made by the Ministry of Railways in consultation with the Railway Sports Promotion Board, to the Railways/Production Units.

        Similarly, allotment of Rs. 3.50 for scouting activities for scouting activities will also be made by the Ministry of Railways Rs.3/- per capita allotted for  “ Immediate relief in times of crisis arising out of natural calamities” will be made from the “SBF Calamity Relief Fund” at the level of the Ministry of Railways. Therefore, allotment for Rs. 11.50 will be made centrally by Ministry of Railways(Railway Board).Augmentation to the SBF by Railways will thus be at the rate of Rs.23.50 per capita (Rs.35 minus Rs.11.50)
(Authority: Board's letters no. E(W)2007FU-1/1 dated 13th March,2008)

         Note. 4.—Except in the case of funds for scouting, sports, education and Inter Railway Cultural Competitions, Staff Benefit Fund Committees of the Railways/Production Units, etc. may re-appropriate funds under other heads, subject to the condition that not more than 10% of the amount is re-appropriated from any head. 
(Authority: Board’s letter No. E(W)97/FU-1/4 , dated 13-10-99) 

 806. Expenditure from the fund. -- Subject to the general supervision of the General Manager, all expenditure from the Staff Benefit Fund shall be authorised by the Committee or by a Sub-Committee duly appointed under the provisions of Rules 808. 

Railway Ministry's decision. - The cost of stationery, printing charges of forms, postage charge and other contingent expenses relating to the Fund should be met from the Railway Revenues. Expenditure on entertainment during the meetings, of the Staff   Benefit Fund Committee should be met from the fund itself.  

(Railway Ministry's letter No. E(W)59FU-1-12 dt. 10-5-1960 & No. E(W) 60FU 1-3, dt. 12-2-1960).  

 807. Management of the Fund. -The fund shall be managed by a Committee at the headquarters of the Railway presided over by the Chief Personnel Officer. Besides Chairman the Committee shall consist of the following:-  

(i)         The Chief Personnel Officer;                                      

(ii)        The Chief Medical Officer;

(iii)       The Additional Chief Engineer;

(iv)       A Welfare Officer to be nominated by the General Manager who shall act as the Secretary of the Committee ; and

 (v)     Six members shall be from recognised unions, to be equally divided amongst the recognised unions.  

Note. .-In the production units where staff councils are functioning members elected by the Central Staff Councils will be represented on the Staff Benefit Fund Committee.  

            (Authority : Board’s letter No. E(W)97/FU-1/4 ,  dated 13-10-99) 

 808. (1) There shall be a Divisional Staff Benefit Fund Committee on each Division, which shall  be presided over by the Divisional Personnel Officer.  

Besides the Chairman, the Committee shall consist of the following:- 

(i)  One officer to be nominated by the Divisional Railway Manager ; 

(ii)  Two representatives from each recognised union; and  

(iii) A Welfare Inspector nominated by the Divisional Manager who shall act as   Secretary.  

(2) Each workshop will also have a Workshop Staff Benefit Fund Committee, the constitution of this Committee being the same as that prescribed above for the Division. If there is no Senior Scale Personnel Officer in a workshop, his place shall be taken by the Works Manager, or if there is no Works Manager, by the Assistant Works Manager. 

In the event of disagreement with the decision of the Division/Workshop Sub- Committee, the matter shall be referred to the Divisional Railway Manager/Deputy Chief Mechanical Engineer-in-charge of the workshop, as the case may be, whose decision in the matter shall be final.  

The Divisional/Workshop Staff Benefit Fund Committees shall have powers to allot funds for the objects specified in these rules within the rules and limitations prescribed by the Headquarters Committee.  

Railway Ministry's decision 1.-No retired employee, or an outsider shall be nominated by the Recognised Unions to serve on the Staff Benefit Fund Committee.  

(Railway Ministry's letter No. E(W)68FU1-5,   dt, 30-4-1968).  

Railway Ministry's decision 2.-Railway employees under suspension shall not be allowed to participate in the meetings of the Staff' Benefit Fund Committee. There is no objection to substitutes taking their place for the period the sitting members remain disqualified.  

(Railway Ministry's letter No. E(W)60NM1-31,   dt. 1-11-1960.)  

 809. A member of the Committee or Sub-Committee shall hold office for one year unless he is removed by the General Manager or resigns but shall be eligible for renomination or re-election.

 810. If the Chairman disagrees with a majority of the Committee as regards-  

(1)  Financial propriety of an expenditure from the Fund. 

(2)  Whether the grant comes within the objects mentioned in rule 802.  

(3)  Whether it conflicts with the, recognised policy of the Government or the Railway, he shall refer the matter to the General Manager whose decision in the matter shall be final.  

 811. Accounts of the Fund.-- The General Manager shall make such arrangements as may be necessary for keeping the accounts of the fund; and audit shall be carried out in such manner as the President may direct.  

 812. Annual report on the working of the Fund. -The General Manager shall submit annually a report to the Railway Board on the working of the fund during the previous financial year.

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