Proceeds of GPF on the date of retirement

Instances are galore that hardly any Government employee in Jammu and Kashmir attaining superannuation would get his or her general provident fund balance plus up-to-date interest in a hassles free manner and never ever within a few days of one’s retirement. Delaying the payment by the concerned in charge was considered as a routine matter and a fait accompli by the outgoing employee . Psychologically, this treatment post retirement was considered as one of the “horrors” of retirement . On the contrary , employees retiring from Public Sector Undertakings under the control of Government of India would get full provident fund with interest , gratuity, leave encashment and all dues payable, right on the date of the retirement provided there was no issue pending from vigilance angle against the retiree or was not under suspension or facing any criminal case. It is heartening to note that from now onwards, the employees serving in Government departments of the Union Territory of Jammu and Kashmir will be getting the proceeds of General Provident Fund (GPF) money on the date of their superannuation from the service. Another associated thing to be noted with interest is that whosoever was found delaying such payment to the beneficiary could face appropriate action.
There are other associated issues also of importance but the decision to make it mandatory for releasing and paying the GPF proceeds to the retiree in time , ie, on one’s last day of service in office, would be received by all serving employees with great relief. Those employees, however, who stand covered under the New Pension Scheme (NPS) are not required , now, as a natural corollary , to contribute to the GPF . Pertinent to note is that the employees covered under the NPS appointed on or after January 1, 2010 and who were allowed to open GPF accounts and contribute on monthly basis to GPF on voluntary basis under a previous notification , will not make further contribution to GPF accounts. Finance Department , to this effect , has issued guidelines following implementation of General Provident Fund (Central Services) Rules of 1960 effective from January 8, 2020. However, those Government employees appointed after the start of the year 2010 are outside its purview. All the details of interest payable beyond six months up to one year on the GPF , procedure in case an employee who died in harness and other associated issues are duly elaborated in the guidelines by the Financial Commissioner issued under the orders of the Lieutenant Governor.
Measures of uniformity and reforms in respect of service related matters were being increasingly felt to be implemented in Jammu and Kashmir but in the absence of the implantation of Central Services Rules and segregating GPF and NPS for obvious reasons, the same could take place only now which should be really felt beneficial for employees in the long run.