General Provident Fund: Centre issues key clarification on PF settlement for retired govt employees. Read here
The Centre clarified that interest must be paid on delayed General Provident Fund (GPF) payments post-retirement, highlighting the need for timely processing from preparing retirement lists to issuing Pension Payment Orders
The Centre has clarified the General Provident Fund (GPF) disbursement to government employees upon retirement. This clarification, provided by the Department of Pension and Pensioners’ Welfare (DoPPW), addresses inquiries regarding interest payments on delayed GPF payments after retirement.
The new instructions, dated October 25, 2024, highlight the importance of timely processing at every stage, from preparing retirement lists to issuing the Pension Payment Order (PPO). Additionally, this notice clarifies the payment of interest on delayed General Provident Fund (GPF) final payments for retiring government servants, addressing the responsibilities of relevant authorities and the consequences of any delays in disbursement.
“Recently, a few references regarding interest on delayed payment of GPF to the retired government have been received to clarify whether interest is payable on GPF after retirement,” the memorandum said.
Centre issues clarification on payment of GPF to retired employees: Key Points
1)Rule 34 of the General Provident Fund (Central Service) Rules, 1960 states that the Accounts Officer must ensure timely payment of the GPF amount upon the subscriber's retirement.
2)The GPF amount is the sole asset of the individual government servant, and any pending disciplinary actions do not affect its disbursement.
3)Interest on Delayed Payments: According to Rule 11(4), if the GPF balance is not paid at retirement, interest must be paid for the period beyond retirement.
4)Interest Payment Procedures:
- The Pay and Accounts Office (PAO) can approve interest for six months after retirement.
- Interest payments beyond six months require approval from the Head of the Accounts Office, and the Controller of Accounts/Financial Adviser must approve payments beyond one year.
- Escalation of Delays: Any cases requiring interest payment will be presented to the Secretary of the relevant Administrative Ministry or Department to prevent financial burdens due to interest on delayed GPF payments.
- Responsibility Assignment: The Secretary will determine accountability at all levels for delays in GPF payments to ensure timely processing and avoid unnecessary interest payments.
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Business NewsMoneyPersonal FinanceGeneral Provident Fund: Centre issues key clarification on PF settlement for retired govt employees. Read here
First Published:2 Nov 2024, 09:30 AM IST
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