RAILWAYS PENSION LIABILITY

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The pension liability of Indian Railways during the current financial year 2003-2004 is estimated to go upto Rs. 6500 crores on account of increase in the number of pensioners and the sanction of higher dearness relief to pensioners.

Accordingly, appropriation to the Pension Fund from revenues will be enhanced to Rs. 6300 crores in the current fiscal, subject to adjustments. This together with appropriation of Rs. 200 crores from Railway Production Units will enable the Railways to meet the pension requirement of Rs. 6500 crores during the year.

During 2002-2003, the appropriation to the Pension Fund was kept at Rs. 6000 crores and Rs. 200 crores, respectively, from Revenues and Production Units. The closing balance in the Pension Fund at the end of the financial year 2002-2003 was Rs. 465 crores.

The Pension Fund has been created to cover the current pension benefits earned in each year of service. The appropriation to this Fund is met out of revenues earned by the Railways.