Provident Fund – Overview

Overview – General Provident Fund

1.Applicability — The GPF Rules are applicable to those Central Government employees who have been appointed on or before 31-12-2003.

2.Eligibility— Temporary Government servants after continuous service of one year, re-employed pensioners and permanent Government servants shall subscribe to GPF compulsorily. Temporary Government servants may subscribe to GPF even before completion of one year’s service.— Rule 4.

3. Amount of subscription.— A sum (in whole rupees) as fixed by the subscriber, subject to a minimum of 6 per cent of emoluments and not more than his total emoluments.— Rule 8(1).

4.”Emoluments” means pay, DP, leave salary and any remuneration of the nature of pay received in foreign service. Does not include DA.— Rule 2(1) (b).
NOTE.— Whole or part of the bonus amount (ad hoc or productivity linked) may be deposited in the Provident Fund.— Rule 7, GID (2).

5.Minimum subscription.— Should be fixed with reference to the emoluments on the 31st March of the preceding year and in the case of new subscribers to the emoluments on the date of joining the Fund.— Rule 8.

6.Enhancement / Reduction.— Subscription may be increased twice and/or reduced once at any time during the year.— Rule 8 (4).

7.Suspension of subscription.— Subscription to the fund shall be stopped during suspension, and at the option of the Government servant during leave on half pay, leave without pay and dies non. Proportionate subscription to be recovered for the period of duty and any leave other than HPL / EOL.— Rule 7 (1), and Rule 8.

8.Recovery to be stopped 3 months before retirement on superannuation.— No subscription should be recovered during the last three months ot his service.— Rule 7, GID (1).

9.Interest for 2007-08.— 8%.

10.Nomination.— A subscriber can nominate one or more person conferring the right to receive his GPF amount in the event of his death. I1″1″0/, than one person is nominated, the amount or share payable to each should indicated clearly. A subscriber may at any time cancel a nomination by notice and send a fresh nomination. A subscriber having a family can nominate 0uly members of his family. Subscriber having no family can nominate any person / persons, including a Company / Association / Body of individuals / a Charitable or other Trust or Fund. Subj ect to its validity, a nomination / notice 0f cancellation takes effect from the date of its receipt by the Accounts Officer.— Rule 5.
NOTE.— A nomination submitted to the Head of Office is valid even if the subscriber dies before it reaches the Accounts Officer.— C&A.G’s Decision (2), Rule 5.

11.Family.— “Family” includes wife / wives except judicially separated wife, husband (unless expressly excluded), parents, a paternal grandparent when no parent is alive, children (including adopted children), minor brothers, unmarried sisters and deceased son’s widow and children. A ward under the “Guardians and Wards Act, 1890″, who lives with the Government servant and to whom the Government servant has given through a special will the same status as that of a natural child, will also be treated as a member of the family.—-Rule 2.

Courtesy:-http://www.igecorner.com