SHAMSHAD HUSSAIN vs SENIOR GENERAL MANAGER/CEO PAKISTAN RAILWAYS HEADQUARTER OFFICE, LAHORE Retirement of empl

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SHAMSHAD HUSSAIN VS SENIOR GENERAL MANAGER/CEO PAKISTAN RAILWAYS HEADQUARTER OFFICE, LAHORE Retirement of employee---Post-retirement benefits, payment of---Concept, rights and obligations---Commutation amount---Entitlement---Payment of post-retirement benefits like pension, Provident Fund or commutation amount etc.is not a bounty of the employer / department, rather a vested right of employee, while the employer's fiscal instabilityor lack of financial resources would not be an excuse or valid ground to suppress post retirement benefits or taking away the vested right of retired employee---It is duty of the employer/department to arrange the recourses where the fund can be made available to fulfill the rights of retired employees---Pensionary benefit is the only scheme of livelihood for a pensioner to live a dignified life after retirement---Commutation is part of pension plans devised by the Government for retired employees, according to which an employee has an option to commute a portion of his pension, mostly not exceeding 40% of it in to a lump sum payment---Said plan is envisaged by the Government to ensuresocio economic security of employees for post retirement period---The pension is in nature of right which employee has earned by rendering long service to the employer, rather it is a deferred payment of compensation for the post service of the employee , which is neither a charity nor is gratuitous payment nor solely dependent on the sweet will or whims of the department; it is in fact in the nature of socio security plan guaranteed by the Constitution of Pakistan---Any delay in payment of pensionary right is violative of vested fundamental right of employee, which amounts to criminal negligence---Pension is a right which the Government servant or the employees in different positions and different capacities earn in terms of the relevant statutory provisions applicable to their cases, mostly depending upon their length of service; and in any case it is not a state bounty which could be awarded as a favour to any individual outside the scope of applicable statute---In view of the concept and connotation of the term “pension” the rights and obligations attached thereto, the respondents /Department are under laden statutory duty to pay the commutation amount to all the retired employees immediately---Federal Service Tribunal directed the respondents /Pakistan Railways to pay the commutation amount to the retired employees, within two months positively---Appeal, filed by retiredemployees,was allowed.

SHAMSHAD HUSSAIN vs SENIOR GENERAL MANAGER/CEO PAKISTAN RAILWAYS HEADQUARTER OFFICE, LAHORE Retirement of employee — 2026 PLC(CS) 653 FEDERAL-SERVICE-TRIBUNAL

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