Now, employees to get GPF money on the date of superannuation

Those covered under NPS won’t make further contribution

*Action to be taken against officers delaying payment

Mohinder Verma
JAMMU, Sept 28: Now, the employees of the Government of Union Territory of Jammu and Kashmir will get General Provident Fund (GPF) money on the date of their superannuation from the service and whosoever is found delaying the payment will face appropriate action. However, those covered under the New Pension Scheme (NPS) will not be able to make further contribution to the GPF accounts.
This has been made clear in the guidelines issued by the Finance Department consequent upon the implementation of General Provident Fund (Central Services) Rules, 1960 with effect from January 8, 2020.
As per the guidelines issued by the Financial Commissioner, Finance Department Dr Arun Kumar Mehta by the order of the Lieutenant Governor, the General Provident Fund (Central Services) Rules, 1960 will not apply to the Government servants appointed on or after January 1, 2010.
The employees covered under New Pension Scheme (appointed on or after January 1, 2010), who were allowed to open GPF accounts and make contribution towards GPF on voluntarily basis vide SRO-12 dated January 11, 2018 will not make further contribution to GPF accounts, the guidelines said, adding the balance at the credit of the GPF accounts of all such employees will be refunded after the locking in period is over and the roadmap for payment of balance in their favour will be notified separately.
“When a subscriber quits service/retires or dies during the service, amount standing to his/her credit in the GPF will become payable to him/her or his/her nominee and the interest thereon 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 period be less, shall be payable to the person to whom such amount is to be paid”, the guidelines further said.
The payment of interest on the fund balance beyond the period of six months will 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.
Elaborating further, the guidelines said that in case of final refund cases of employees who have already retired from services/died, two or more than two years before date of implementation of General Provident Fund (Central Services) Rules, 1960—October 31, 2019, whose cases have remained unsettled, the interest will be paid for a period of two years as per erstwhile GPF Rules.
In case of final refund cases of employees, who have already retired from service/died less than two years but more than six months before implementation of General Provident Fund (Central Services) Rules, 1960—October 31, 2019, whose cases have remained unsettled, the interest will be paid up to October 31, 2019, the guidelines further said.
Similarly, in case of employees who have retired/died during service six months/less than six months before the implementation of General Provident Fund (Central Services) Rules, 1960, whose cases have not been settled till issuance of these guidelines, interest will be paid up to the end of the month proceeding that in which the payment is made or up to the end of six months after the month in which such amount became payable, whichever of these period is less.
In case of final refund cases, where the employee has retired from the service/died during the service after implementation of General Provident Fund (Central Services) Rules, 1960, interest will be paid up to the end of the month proceeding 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.
As per the guidelines, when the amount standing to the credit of the subscriber in the fund becomes payable in case of superannuation, it will be the duty of the Drawing and Disbursing Officer to make sure that the payment is made on the date of superannuation.
“The authority for the amount payable to the subscriber will be issued at least one month before the date of superannuation but payable on the day of superannuation positively”, the Government has made it clear in the guidelines, adding “in case the General Provident Fund balance is not paid on the date of retirement because of some unavoidable reasons, the interest on GPF balance will be paid beyond the date of retirement also”.
While the interest for first six months will be allowed by the District Fund Officer in normal course, approval of the Director General Fund will be 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 responsibility at all levels to take appropriate action against the Government servants, who are found responsible for delay in payment”, the Government has made it clear in the guidelines, the copies of which have been forwarded to each and every department for strict compliance.

 

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