Finance Department implements Central GPF rules in J&K

The Finance Department on Monday implemented General Provident Funds (GPF) – Central Services – Rules, 1960 in Jammu and Kashmir which will not be applicable on the Government servants appointed on or after January 1, 2010.

Hence, the employees covered under the National Pension System (NPS) have been barred from making further contributions in GPF accounts.

As per the order issued by the Finance Department, the employees covered under National Pension System (appointed on or after January 1, 2010) who have been allowed to open GPF accounts and make contributions towards GPF on voluntarily basis vide SRO-12 dated January 1, 2018 will not make further contribution to GPF accounts.

“The balance at the credit of the GPF accounts of all such employees shall be refunded after the locking in period is over. Road map for payment of balance in their favour shall be notified separately,” reads the order of the Finance Department specifying the guidelines.

When a subscriber quits service or retires or dies during the service, the Finance Department’s order reads that “The amount standing to his/her credit in the fund shall become payable to him/her or his/her nominees. The interest upto the end of the month preceding that in which the payment is made or up to the end of six months after the month in which such amount becomes payable, whichever of these periods be less, shall be payable to the person to whom such amount is to be paid.”

It further reads that: “The payment of interest on the fund balance beyond the period of six months may be authorized by the Director General, Funds Organization up to the period of one year and by the Administrative Department up to any period with the consent of the Finance Department.”

In case of final refund cases of employees who have already retired from services or died, two or more than two years before date of implementation of General Provident Fund (Central Services) Rules, 1960 i.e. October 31, 2019 whose cases have remained unsettled, the order reads that “The interest shall be paid for a period of two years as per erstwhile GPF rules.”

However, in case of final refund cases of employees, who have already retired from service or died    less   than    two   years   but   more    than    six    months    before implementation of General Provident Fund (Central Service) Rules. 1960 i.e. October 31, 2019 whose cases have remained unsettled, the interest shall be paid upto October 31, 2019,

In case of employees who have retired or died during service six months/less (than six months before the implementation of General Provident Fund (Central Service) Rules 1960 i.e, October 31, 2019, whose cases have not been settled till issuance of these guidelines, the Finance Department’s order says that the interest shall be paid up to the end of (he month preceding that in which the payment is made or upto the end of 6 months after the month in which such amount became payable, whichever of these periods is less.

In case of final refund cases, where the employee has retired from the service or has died during the service after implementation of General Provident Fund (Central Service) Rules I960 i.e. October 31, 2019, the interest shall be paid up to the end of the month preceding that in which the payment is made or up to the end of six months after the month in which such amount becomes payable whichever of these periods be less.

When the amount standing to the credit of the subscriber in the fund becomes payable (in case of superannuation), it shall be the duty of the Drawing and Disbursing Officer (DDO) to make sure that the payment is made on the date of superannuation, as per the Finance Department.

The authority for the amount payable to the subscriber is issued at least one month before the date of superannuation but payable on the day of superannuation. In case the General Provident Fund balance is not paid on the date of retirement, the interest on GPF balance is required to be paid beyond the date of retirement also. Where interest for the first six months is allowed by the District Fund Officer in normal course, approval of the Director General Funds is required for payment of interest beyond six months and that of the Administrative Department concerned with the consent of the Finance Department beyond the period of one year.

In all such cases, the Administrative Department will fix responsibilities at all levels to take appropriate action against the Government servants who are found responsible for delay in payment of GPF.