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The Department of Pension and Pensioners’ Welfare (DoPPW) launched new directions on October 25, 2024, to deal with frequent inquiries about curiosity funds on delayed GPF disbursements after retirement.
The discover particulars the cost of curiosity on delayed GPF remaining funds for retiring authorities workers, highlighting the duties of the related authorities and the implications of delays in disbursement.
The Centre has issued a clarification concerning the General Provident Fund (GPF) disbursement course of for presidency workers upon retirement. The Department of Pension and Pensioners’ Welfare (DoPPW) launched new directions on October 25, 2024, to deal with frequent inquiries about curiosity funds on delayed GPF disbursements after retirement.
These directions emphasise the necessity for well timed dealing with at each stage, from getting ready retirement lists to issuing the Pension Payment Order (PPO). The discover additionally particulars the cost of curiosity on delayed GPF remaining funds for retiring authorities workers, highlighting the duties of the related authorities and the implications of delays in disbursement.
According to the memorandum, “Recently, a number of references concerning curiosity on delayed cost of GPF to the retired authorities have been obtained to make clear whether or not curiosity is payable on GPF after retirement.”
Key Points from the Centre’s Clarification on GPF Disbursement to Retired Employees
1. Timely Payment Obligation: Rule 34 of the General Provident Fund (Central Service) Rules, 1960 mandates that the Accounts Officer ensures the GPF quantity is paid promptly upon the subscriber’s retirement.
2. Unconditional Disbursement: The GPF steadiness is the retired authorities servant’s sole property, and its disbursement stays unaffected by any pending disciplinary proceedings.
3. Interest on Delayed Payments: Rule 11(4) states that if the GPF steadiness is unpaid at retirement, curiosity should be utilized for the interval past the retirement date.
4. Interest Payment Approval Process:
- The Pay and Accounts Office (PAO) can approve curiosity for delays as much as six months post-retirement.
- Interest funds for delays past six months want approval from the Head of the Accounts Office, whereas delays exceeding one 12 months require authorization from the Controller of Accounts/Financial Adviser.
Escalation of Delays: Cases involving curiosity funds will likely be escalated to the Secretary of the involved Administrative Ministry or Department to stop extra monetary burdens from accruing because of delayed GPF funds.
5. Accountability: The Secretary will assign duty at every stage of the GPF cost course of to stop delays, keep away from pointless curiosity funds, and guarantee well timed disbursement.
