GPF (CENTRAL SERVICES) RULES

CONSTITUTION OF THE FUND:

         10.1 The Fund was established under the Provident Funds Act, 1925 as amended from time to time. Originally the subscription to the General Provident Fund was optional, but from 1st September, 1953 it has been made compulsory. Now all Federal Government employees including re-employed personnel having rendered service for more than two years are compulsorily required to subscribe to the General Provident Fund. The Ministers/Ministers for State of (the Federal Government are, however, required to subscribe to the General Provident Fund, from the date of their induction into office.

SUBSCRIBERS ACCOUNT:

         10.2 As soon as a Government servant is due to complete two years service, intimation to that effect should be sent to the Accounts Officer concerned and the latter may be asked to allot a General Provident Fund account number to the Government servant. When a number has been allotted, the subscription should be started. The General Provident Fund account number should be quoted invariably on the schedules and in all correspondence with the accounts officer on the subject.

CONDITIONS AND RATES OF SUBSCRIPTION:

         10.3 The subscription to the General Provident Fund is made by deduction from the monthly pay bills. If a Government servant is on Foreign Service, he can pay his subscription in cash in a Government treasury and forward the treasury challan to the respective accounts officer. The suspension can be suspended during leave and suspension.

         10.4 There would be uniform rate of subscription for every employee based on the mean of his Basic Pay Scale w.e.f. 1^st July, 1987 and are as follows:-

Scale	Minimum	Maximum	Mean	Rate of monthly subscription
1	2	3	4	5
B-1	Rs.600	Rs.860	Rs.730	Rs.25.00
B-2	Rs.625	Rs.945	Rs.785	Rs.40.00
B-3	Rs.650	Rs.1030	Rs.840	Rs.45.00
B-4	Rs.675	Rs.1115	Rs.890	Rs.45.00
B-5	Rs.700	Rs.1200	Rs.950	Rs.50.00
B-6	Rs.725	Rs.1285	Rs.1005	Rs.50.00
B-7	Rs.750	Rs.1370	Rs.1060	Rs.55.00
B-8	Rs.790	Rs.1470	Rs.1130	Rs.60.00
B-9	Rs.830	Rs.1590	Rs.1210	Rs.60.00
B-10	Rs.870	Rs.1710	Rs.1290	Rs.65.00
B-11	Rs.910	Rs.1830	Rs.1370	Rs.70.00
B-12	Rs.970	Rs.2010	Rs.1490	Rs.75.00
B-13	Rs.1035	Rs.2195	Rs.1615	Rs.130.00
B-14	Rs.1100	Rs.2380	Rs.1740	Rs.140.00
B-15	Rs.1165	Rs.2585	Rs.1875	Rs.150.00
B-16	Rs.1350	Rs.2925	Rs.2137	Rs.175.00
B-17	Rs.2065	Rs.3925	Rs.2995	Rs.250.00
B-18	Rs.2710	Rs.4660	Rs.3685	Rs.300.00
B-19	Rs.4130	Rs.5770	Rs.4950	Rs.400.00
B-20	Rs.4900	Rs.6780	Rs.5840	Rs.500.00
B-21	Rs.5420	Rs.7740	Rs.6580	Rs.550.00
B-22	Rs.5800	Rs.8400	Rs.7100	Rs.600.00

NOMINATIONS:

         10.5 As soon as a subscriber joins the Fund he should send to the Accounts Officer a nomination conferring on one or more persons the right to receive the amount that may stand to his credit in the event of his death before that amount has become payable or having become payable has not been paid. The nomination can be in favour of any person, but if a subscriber has a family (wife or wives, legitimate children, widow or widows and children of a deceased son and husband in the case of a female Government servant) he cannot nominate any person other than the members of his family. A bachelor, having given nomination in favour of any person has to revise it as soon as he gets married.

         10.6 The nomination can be in favour of more than one person. In such a case the amount of share payable to each nominee should be clearly indicated. Alongwith the nomination a contingent notice of cancellation should also be sent to the Accounts Officer. The nomination once made can be revised at any time at the discretion of the subscriber.

         10.7 A copy of the nomination paper may be kept in the service books of the subscribers drawing pay in Basic Pay Scale 15 and below and in case of those drawing pay in the Basic Pay Scale 16 and above, in their personal file.

INTEREST:

         10.8 The Government pay to the credit of the account of a subscriber interest at such rate as may be determined for each year. The interest is calculated on the amount at the credit of a subscriber on the last day of the preceding year, less any sums withdrawn during the current year interest for 12 months and on all sums credited to the subscriber's account after the last day of the preceding year-interest from the date of deposit upto the end of current year. The amount of interest is rounded to the nearest rupee. In addition a benefit of 30% over and above the normal interest for the year payable to the subscriber would be allowed from 1st July, 1986.

[Finance Division O.M No F I(5)/Reg. (7)/87 dated 19-11-87].

         10.9 Where the amount standing at the credit of a subscriber has become payable, interest should be credited in respect of the period from the beginning of the current year or from the date of deposit as the case may be, upto the date on which the amount standing at the credit of the subscriber became payable. The date of deposit for this purpose, in case of recovery from pay bill would be deemed to be the 1st day of the month in which it is recovered. In case the amount has been deposited by the subscriber in a treasury/bank, the date of deposit would be deemed to be the 1st day of the month of receipt if it is received by the Accounts Officers before the 5th day of that month.But if it is received on or after the 5th day of that month, the first day of the next succeeding month.

         10.10 While making the final payment in respect of G. P. Fund, the interest will be paid upto the end of the month preceding that in which payment is made. In the case where the Accounts Officer has intimated to the subscriber a date on which he is prepared to make payment in cash, interest would be payable only upto the end of the month preceding the date so intimated. If the subscriber claiming the payment does not send an application in that behalf within six months of the date on which the amount standing in the credit with the subscriber become payable, interest would be payable upto the end of six months after the month in which the amount became payable. In case of delayed payment of G. P. Fund and residual balance thereof, the payment of interest may be made up to the end of the month preceding that in which the payment of residual balance(s) is/are made.

[Finance Division O. M. No. F. I(l)-R. 7/84 dated 9-6-1984]

         10.11 If a Muslim requests the Accounts Officer in writing that interest may not be calculated on his accumulation it will be done accordingly, but if he subsequently asks for interest, it will be credited from the first day of the financial year in which he asks for it.

ADVANCE FROM THE FUND:

         10.12 A temporary advance may be granted to a subscriber from the amount standing at his credit in his General Provident Fund account subject to the following conditions:

(i) Advance will be granted only if the sanctioning authority is satisfied that the pecuniary circumstances of the applicant justify it;

(ii) to pay expenses incurred in connection with the prolonged illness of the applicant, the applicant's spouse or any person actually dependent upon him;

(iii) to pay for the overseas passage for reasons of health or education of the applicant or any person actually dependent upon him;

(iv) to pay obligatory expenses on a scale appropriate to the applicant's status in connection with funerals or ceremonies which by his religion it is incumbent upon him to perform or in connection with his marriage or the marriage of any member of his family or a female relative actually dependent upon him;

(v) the amount should not exceed three months' pay or half of the amount at the credit of the subscriber in the fund whichever is less,

(vi) to purchase a motor car/motor cycle/bicycle by a subscriber, whose deposits carry not interest and who does not take any advance from the Government for the purpose.

10.13 The advance may also be allowed to a subscriber to enable him to pay the 'dower' to his wife on the following conditions:

(a) the applicant should produce evidence within one month of the drawal of the advance that he had actually paid the 'dower' failing which the advance should be recovered in lump sum;

(b) if the subscriber has already drawn an advance in connection with his marriage no further advance will be given to him for the purpose of payment of the "dower"; and

(c) the advance should not exceed the limit mentioned above or the actual amount of 'dower' fixed whichever is less, proof of which should be produced by the subscriber concerned.

         10.14 The subscribers would be allowed advances in a manner that only one advance would remain outstanding at one time.

[Finance Division O. M. No. F. 1(5)-Reg. (7)/87 dated 19-11-1987].

         10.15 If a Government servant who has not drawn any advance from G. P. Fund previously or a period of 12 months has elapsed after the final repayment of all previous advances together with the interest thereon, applies for advance from the G. P. Fund the amount of which may, for special reasons, exceed three months pay, or 50% of the balance which ever is less, it can be sanctioned by the competent authority.

         10.16 The advance is recoverable in such instalments as a sanctioning authority may direct, but such number should not be less than 12 and more than 48. A subscriber may, at his option, pay more than one instalment in the month. Each instalment should be a number of whole rupees, the amount of advance being raised or reduced, if necessary, to fix such instalments. The recovery will commence from the pay of the month in which the advance is drawn. A competent authority may order the postponement of recovery of advance, if so
requested by the subscriber. Recovery will also not be made except with the subscriber’s consent, if he is on leave or in receipt of subsistence grant. After the principal has been repaid the interest will be recovered. The Muslims, whose deposits do not carry interest, are not required to pay interest on the advances drawn by them (Rule 15).

         10.17 An advance for the construction of a house for occupation by the subscriber himself or for the purpose of completely reconstructing or for extending/renovating a house owned by him or by his wife and children or by any of them may be granted subject to the following conditions:

(i) Advance should be as nearly as possible to the terms and conditions laid down in Para 253-A of the G. F. Rs;

(ii) Advance should not exceed 36 months pay of the subscriber or 1of the amount at the credit of the subscriber in the Fund, whichever is lesser;

(iii) Land and house constructed thereon is mortgaged to the President within three months of the drawal of advance. The mortgage deed should be registered within three months of its execution;

(iv) Recovery to be made, at the rate of 7% of the subscribers pay commencing from the fourth issue of pay after the first installment of advance is drawn. If the amount of advance does not exceed 18months pay of the subscriber, recovery is made at the rate of 5% of pay;

(v) The advance from the GPF account of a Government servant granted for the construction of a house, will not be taken into account for the purpose of calculating the total house building" advance to which a Government servant is entitled.

(vi) Where the amount of advance drawn was less than Government servant's 36 months pay and he had drawn 80% of the balance at his credit, he may draw additional instalment(s) of advance from the G. P. F. (for the same house) subject to the following conditions:

(a) the total amount of additional instalment(s) should not exceed the overall limit of 36 months pay;

(b) the pay for the purpose should be the pay which the Government servant was drawing at the time of drawing the first instalment;

(c) subsequent instalment(s) should not be sanctioned until at least one year has elapsed from the date of drawal of the previous instalment.

10.18 Non-refundable advance may be paid to a subscriber who has attained the age of 50 years for the repair of an existing house subject to the following conditions:—

(i)   the existing house and the land on which it has been built is owned by the subscriber himself or by his wife/children;

(ii)  the amount of advance should not exceed 6 months pay of the subscriber or 30% of the balance in G.P.F. whichever is less;

(iii) the amount so advanced will be treated as part of the final payment, when the final payment becomes, due;

(iv) the amount of advance will be drawn only after an agreement is executed by the subscriber in the prescribed form;

(v) in case the land or house is sold or otherwise alienated by its owner to anyother person, while the subscriber is still in service, the entire amount of advance together with the interest accrued thereon will have to be repaid to the Fund in lump sum.

10.19 After a subscriber has attained the age of 45 years he can draw an advance from the G.P.F. for the construction of a house on land owned by him or by his wife and children or by any of them on the following conditions:—

(i)   The advance will be governed by the same terms and conditions as in preceding para and exceptions mentioned below;

(ii)   The amount of the advance will be 36 months pay or 80% of the balance at credit whichever is less;

(iii)   No recovery of the advance will be made and it will be treated as part of the final payment, when the final payment would become due;

(iv)   An agreement will be signed in the prescribed form;

(v)     Land and House will not be required to be mortgaged to the President;

(vi)    If  the land or house is sold, while the subscriber is still in service the entire amount of advance together with the interest accrued thereon will have to repaid to the G.P.F. in lump sum.

         10.20 The subscribers who had drawn the G.P.Fund advance under the preceding para may convert it to non-refunable advance in terms of preceding para after they have attained the age of 50 years.

         10.21 A subscriber having attained the age of 50 years may be granted an advance equal to 80% of the balance standing at his credit in the G.P.F. or 36 months pay, whichever is more for the purchase of agricultural land from the Government on the same terms and conditions as stated in the preceding para.

         10.22 A non-refundable advance may be drawn by a subscriber, who has attained the age of 50 years, equal to his 12 months pay or 80% of the balance at his credit in the GPF whichever is less, in the following cases:-

(i) to defray expenses in connection with the prolonged illness of the subscriber himself or a member of his family actually dependent upon him;

(ii) to pay for the overseas passage of the subscriber for reasons of health or for the performance of Haj:

(iii) to pay for the overseas passage for reasons of education of any member of the subscriber's family actually dependent on him and such other lump sum expenditure as admission or advance tuition fees of any such member;

(iv) to pay obligatory expenses on a scale appropriate to the subscriber's status in connection with funeral or other religious ceremonies or in connection with the marriage of any member of his family actually dependent on him or of a female dependent relative.

(v) With effect from 26th July, 1977, subject to the condition laid down in rules 15-D and 15-G of the G.P. Fund (Civil Services) Rules, nonrefundable house building advances from G.P. Fund can also be sanctioned to the subscribers who have attained the age of 45 years and who do not draw interest on their G. P. Fund Accounts. This concession is also admissible to such of the subscribers who have already liabilities to discharge to financial institutions in connection with construction of their houses:

(a) On having attained the age of 55 years the subscriber may be allowed to draw, at the discretion of the competent authority, a special non-refundable advance not exceeding 80% of the amount standing to his credit in the fund.

(b) There is no bar to grant of further non-refundable advances to a person under this rule (15-E) provided that on each occasion the amount of advance does not exceed 80% of the balance at credit. Second or subsequent advance may not be allowed until at least a period of one year has elapsed since the previous advance has been drawn.

         10.23 There is no bar to the grant of a second non-refundable advance to a subscriber, who has drawn a non-refundable advance previously.

         10.24 After a subscriber has attained the age of 45 years he can be granted an advance equal to eighty per cent of the amount standing at his credit in the Fund or 36 months pay of the subscriber whichever is less for the purchase of a house for his residence, subject to the following conditions: -

(i) no recovery will be made for the advance and it will be treated as part of final payment;

(ii) an agreement will have to be executed in the prescribed form;

(iii) the house is not required to be mortgaged;

(iv) if the house is not purchased within three months of the drawal of advance or it is sold out, the entire amount of advance together with the interest accrued thereon will have to be repaid to the Fund in lump sum;

(v) the advance can be drawn in one instalment, but the satisfactory evidence for the purchase of house will have to be produced to the audit officer within three months of the date of drawal of advance and the legal receipt for the amount paid will be recorded with the Head of Department.

         10.25 Advance can be drawn by a subscriber, who has attained the age of 50 years, on a non-refundable basis, to repay loan taken from a financial institution, subject to the following conditions:

(a) the advance should not exceed 80% of the amount standing at credit in the Fund;

(b) the sanctioning authority should satisfy itself about the loan taken and the balance still payable. The amount of advance should not exceed the balance payable; and

(c) the subscriber should within a period of two weeks of the drawal of advance, produce satisfactory evidence to the audit officer that the advance was utilised for the purpose it was drawn failing which the entire amount together with the interest will be refundable.

         10.26 The limit of 12/36 months pay in the preceding paragraphs will apply only when the balance at credit exceeds that limit, otherwise the advance will be restricted to 80% of the balance.

         10.27 A subscriber, having attained the age of 50years, may draw an advance from his G.P. Fund on non-refundable basis, without assigning any reason, upto 60% of the amount standing to his credit in the Fund.

 FINAL WITHDRAWAL OF THE ACCUMULATIONS:

         10.28 When a subscriber proceeds on L. P. R. or finally quits the service, the amount standing at his credit in the Fund is payable to him. In case a subscriber does not proceed on LPR he can draw the final payment of G. P. F. during the period of 12 months preceding the date of retirement on attaining the age of superannuation. In case a subscriber is dead before the amount becomes payable to him or where the amount has become payable before payment has been made, the payment will be made as under:

(i) When the subscriber leaves a family the payment will be made to the nominee or the nominees in accordance with the shares fixed for them by the subscriber. If there is no nomination in favour of any member of the family, the amount will be payable in equal shares to the members of the family with the exception of the following:-

(a) sons who have attained legal majority;

(b) sons of a deceased son who have attained legal majority;

(c) married daughters whose husbands are alive; and

(d) married daughters of a deceased son whose husbands are alive.

The widow/widows and child/children of a deceased son would receive only that much share as the deceased would have received had he been alive and been exempted from the restriction referred to above.

(ii) When the subscriber does not leave any family, the payment will be made to the nominee or nominees as the case may be. If there is no nominee, the payment will be made to such claimants as can produce a legal authority but if the balance payable is Rs. 5,000 or less the payment may be made to the heirs of the deceased without legal authority in terms of Rule 234(1 )(i) of the Federal Treasury Rules.

If any of the claimants mentioned above is a minor, the payment will be made to a person who can produce a valid guardianship certificate.

PROTECTION OF THE ACCUMULATIONS:

10.29 The Government is not bound by or to recognize any assignment or encumbrance executed or attempted to be created which effect the disposal of the accumulations of a subscriber, who dies before retirement. The accumulations of a subscriber are not liable to forfeiture on dismissal or on conviction by a criminal court except for an offence for which the penalty of forfeiture of the offender's property is prescribed by law. The accumulations are also protected from attachment by a Court of Law.

         10.30 The amounts detected as overpaid to a Government servant, cannot be recovered from his General Provident Fund account unless he gives his consent to that effect in writing. Similarly money due to Government by a deceased officer on account of advance of pay or on account of embezzlement of Government money found after his death cannot be legally deducted from his accumulations. Since all General Provident Fund deposits are protected against all creditors, the Government should not use its position as custodian of the Fund to put themselves in a better position than other creditors.

CLASS-IV

         10.31 The former class IV employees are governed by the Central Government (Class IV servants) Provident Fund Rules. In terms of these rules a Class-IV Government servant is required to contribute at the rates mentioned in Para 10.4.

[Finance Division O.M No F I(5)-Reg. (7)/87 dated 19-11-1987]

10.32 The amount so deducted shall be shown in a separate column of the pay-bill and classified as revenue receipt under the head "1000 Non-Tax Receipts 1200 Receipts from Civil Administration and other Functions 1210 Receipts from General Administration 1212 Receipts in aid of superannuation".

10.33 The head of office shall record a certificate on the pay-bill to the effect that deductions on account of provident fund have been made in all cases and where a deduction has not been made in any case he shall record the reason therefor.

10.34 A record of the amounts deducted, shall be maintained in a separate proforma statement to be pasted in. his service book showing the date and amount of deductions made. Each entry therein shall be attested by the head of office under his signature and shall also be signed by the Class IV servant concerned. If no deduction is made for any month the fact and the reason therefore shall be recorded in the statement and the entry shall be likewise attested.

         10.35 Every head of office shall maintain a register showing deductions made on account of provident fund. This register shall be posted monthly from the pay bills of the Class IV servants and the entries made in that register shall be reconciled with those made in the several service books at monthly or other convenient longer intervals.

         10.36 In the service book of a Class IV servant who was contributing to the General Provident Fund before the commencement of these rules there shall be entered as an opening balance, the amount, at his credit in the General Provident Fund account, which shall be closed by transfer credit to the head "1000 Non-Tax Receipts-1200 Receipts from Civil Administration and other Functions1210 Receipts from General Administration-1212 Receipts in aid of superannuation". Where any amount subscribed by a Class IV servant but not credited to his General Provident Account is ascertained subsequently, it shall be added to the opening balance in the service book after making the necessary transfer entry in his General Provident Fund Account.

         10.37 After a government servant has ceased to be entitled to contribute to the Provident Fund under these rules, the amount due to him shall be the amount to the credit of his accounts plus interest thereon calculated for each year at the same rate of interest and in the same manner as was applicable to the General Provident Fund contributions.

         10.38 The amount of interest payable by the Central Government under these rules shall be worked out by the Accountant General who shall report after necessary audit checks the amounts payable separately on account of the provident fund deductions and interest thereon.

         10.39 For the purpose of these rules, the head of the office in which the Class IV servant was last on duty shall furnish the Accountant General with the service book of the Class IV servant or a certified copy of the account of the provident fund deductions and the sanction of payment will be issued by the head of office on receipt of the report of the Accountant General.

10.40 Where a Class IV servant becomes eligible for contributing to the General Provident Fund, the amount payable to him shall be transferred to his credit in the General Provident Fund Account.

         10.41 In all other cases payment shall be made in cash to the Class IV servant, and in either case an entry shall be made in the service book under the signature of the head of the office showing the amount paid and the date and authority for payment.

         10.42 Every Class IV servant shall nominate, in accordance with rule 8 of the General Provident Fund (Central Services) Rules, three persons in order of priority and such nomination shall be countersigned by the head of the office and pasted in his service book. In case a Class IV servant dies before receiving payment under rule 12, the amount payable to him under that rule shall be paid to the surviving nominee first in the order of priority.

         10.43 Payments made to a Class IV servant on account of deductions made under those rules and interest thereon shall be debited respectively to the head of account "600 Transfer Payments 660 Superannuation Allowances and Pension 669 Others Payments under the Central Government (Class IV Servants) Provident Fund Rules" and "600 Transfer Payments 610 Interest 616 Others Interest Payable under the Central Government (Class IV Servants) Provident Fund Rules."

         10.44 The provisions regarding temporary advances as contained in the General Provident Fund (Central Services) Rules will be applicable under these Rules also. The accounts of the deductions and the advances will continue to be maintained by the Drawing and Disbursing Officers. The withdrawals on account of advances may be debited to the head "4000 Advance Not Bearing Interest-4100 Advances Payable 4109 Provident Fund". Advances to Government Servants and recoveries should be adjusted against the same head of account.