New Delhi: The General Provident Fund (GPF) has been established by the government as a compulsory financial savings initiative for the benefit of its employees and their families. The programme gives financial cushion to the employees during their time of active service and helps them financially after retirement. The main objective of the GPF is to ensure a steady income for government personnel after their retirement.
When it comes to the disbursement of the GPF to government employees after their retirement, the central government has issued a clarification. The Department of Pension and Pensioners’ Welfare (DoPPW) has responded to queries regarding the payment of interest on overdue GPF payments after retirement.
The focus of the new instructions is on the significance of timely processing at each stage, from making the list of retired people to the issuance of the Pension Payment Order (PPO). Also, the notice has clarified the payment of interest on the delayed final payment of GPF for government servants who are retiring, focusing on the tasks and responsibilities of relevant authorities. The new instructions also highlight the consequences of delays in GPF disbursement.
What was Centre’s clarification on GPF payment?
Ensure timely payment
As per Rule 34 of the General Provident Fund (Central Service) Rules, 1960, it is the responsibility of the Accounts Officer to ensure the GPF amount’s payment when it becomes due. It shows the obligation of the authorities to process these payments efficiently.
Property of the government servant
The GPF balance is solely the property of the retired government servant and no pending disciplinary proceedings can affect its disbursement.
Delayed Payment Interest
As per Rule 11(4), if at the time of retirement, the GPF balance is not paid, interest must be paid for the period beyond retirement.
Interest Payment Process
After retirement, the Pay and Accounts Office can approve interest for delays up to the timeframe of 6 months.
The Head of the Accounts Office must approve the interest payments beyond six months. The financial adviser or the Controller of Accounts must give their approval for payments beyond 1 year.
The Centre’s Department of Pension and Pensioners’ Welfare (DoPPW) has issued a clarification with respect to GPF disbursement to government employees after their retirement. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
