The Department of Pension and Pensioners’ Welfare (DoPPW) has issued a memorandum clarifying the payment of the General Provident Fund (GPF) to retiring government employees. This follows inquiries about whether interest is payable on delayed GPF payments after retirement.
“Recently few references regarding interest on delayed payment of GPF to the retired Government have been received for clarification whether interest is payable on GPF after retirement,” the memorandum said.
In the memorandum, the DoPPW refers to previous clarifications provided to various ministries and departments, emphasizing that timely payment of the GPF final amount is crucial for retired government servants. The relevant guidelines were outlined in an earlier office memorandum from January 2017.
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According to Rule 34 of the General Provident Fund (Central Service) Rules, 1960, the Accounts Officer is responsible for ensuring the payment of the GPF amount when it becomes due. This underscores the obligation of the authorities to process these payments efficiently.
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“… Rule 34 of General Provident Fund (Central Service) Rules, 1960 clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment,” it said.
Importantly, the memorandum highlights that the funds in a GPF account are the individual property of the government servant. Therefore, any pending disciplinary cases or penalties will not affect the disbursement of GPF amounts. Additionally, as stipulated in Rule 11(4) of the GPF Rules, if the GPF balance is not paid at the time of retirement, interest will accrue on the balance beyond the retirement date.
What is General Provident Fund?
The General Provident Fund (GPF) is a mandatory savings program set up by the government to help its employees and their families. It provides financial support during times of need while they are working and also offers assistance when they retire.
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