Clarification regarding timely payment of GPF final payment to the retiring Government Servant – regarding
No.3/3/2016-P&PW(F)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
Desk-F
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-110003
Dated 16th January 2017.
OFFICE MEMORANDUM
Subject: Clarification regarding timely payment of GPF final payment to the retiring Government servant – regarding
During review meetings held to evaluate the status of implementation of
Bhavishya with Ministries/Departments, it was observed that GPF final
payment in many cases is not being paid to the retiring Government
servants immediately on retirement from service leading to payment of
interest for the delayed period.
2. Rule 34 of General Provident Fund (Central Service) Rules 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. The authority for the amount payable
is to be issued at least a month before the date of superannuation, but
payable on the date of superannuation. It may be noted that the
requirement of submitting a written application by the retiring Govt.
servant for GPF final payment has been dispensed with vide this
Department’s Notification No.20(12)/94-P&PW (E) dated 15.11.1996 and
notified under S.O NO.3228 dated 23.11.1996.
3. As per Rule 11(4) of GPF Rules, in case the GPF balance is not paid
on retirement, interest on the GPF balance is required to be paid for
the period beyond the date of retirement also. While interest for the
first six months beyond retirement can be allowed by the PAO in the
normal course, approval of Head of the accounts office is required for
payment of interest beyond six months and that of Controller of
Account/Financial Adviser beyond a period of one year.
4. To ensure timely final payment of GPF, and to avoid unnecessary
financial burden on account of interest beyond retirement, it has now
been decided that every case, in which payment of interest on General
Provident Fund becomes necessary in terms of Rules 11(4) of GPF Rules,
1960, shall be put up for consideration to the Secretary of the
Administrative Ministry/Department. In all such cases the Secretary of
the Administrative Ministry/Department will fix responsibility at all
levels to take appropriate action against the Government servant or
servants who are found responsible for the delay in the payment of
General Provident Fund.
5. This issues with the concurrence of the Ministry of Finance,
Department of Expenditure, vide their 10 NO.187/EV/2016 dated 2th
September 2016.
6. Hindi version will follow.
(Seema Gupta)
Director
