Rule 23 - GPF Bonus Rules
Original Rule Text
RULE 23- BONUS OF POLICIES The subscriber shall not during the currency of the policy draw any bonus the drawal of which during such currency is optional under the terms of the policy, and the amount of any bonus which under the terms of the policy the subscriber has no option to refrain from drawing during its currency, shall be paid forthwith into the Fund by the subscriber or in default recovered by deduction from his emoluments by instalments or otherwise as may be directed by the authority competent to sanction an advance for the grant of which special reasons are required under sub-rule (2) of rule 12.
What This Means
This rule outlines how government officers, who are subscribers to the General Provident Fund (GPF), must handle bonuses received from insurance policies that are linked to their GPF account. It ensures that any such bonus either remains with the policy or is promptly deposited into the GPF.
Specifically, if your policy offers a bonus that you have the choice to withdraw while the policy is still active, you are not permitted to take that money out. It must stay with the policy. However, if your policy automatically pays out a bonus during its active term, and you have no option to stop this payment, then you are required to immediately deposit that entire bonus amount into your GPF account.
Should you fail to deposit such a mandatory bonus into your GPF, the government has the authority to recover that amount from your salary. This recovery can be carried out through deductions from your pay, either in installments over time or as a single deduction, as determined by the relevant authority responsible for approving certain types of advances.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1GPF subscribers must follow specific guidelines for bonuses from policies linked to their GPF.
- 2If a policy bonus can optionally be withdrawn during the policy's active period, the subscriber is prohibited from withdrawing it.
- 3Any bonus automatically paid out during the policy's currency, which the subscriber cannot prevent, must be immediately deposited into the GPF.
- 4Failure to deposit such mandatory bonuses will lead to their recovery from the subscriber's salary.
- 5The recovery from salary can be made in installments or as a lump sum, as directed by the competent authority.
Practical Example
Mr. Alok Kumar, an Assistant Director, has an endowment policy that he assigned to his GPF account several years ago. Recently, his insurance company informed him that a 'reversionary bonus' of Rs. 75,000 was declared and automatically credited to his personal bank account as per the policy terms, which stipulated mandatory payout during the policy's active period. Mr. Kumar had no option to defer or prevent this payment.
Under Rule 23, Mr. Kumar is obligated to immediately deposit this Rs. 75,000 bonus into his GPF account. If he neglects to do so, the accounts section of his department, after following due procedure, will initiate recovery. For instance, the competent authority might issue a directive for the Rs. 75,000 to be recovered from his monthly salary in ten equal installments of Rs. 7,500 each, until the full amount is credited to his GPF.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Cross References
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Rule 23 of the General Provident Fund Rules, what is the subscriber's obligation regarding a bonus from an insurance policy linked to their GPF, if the policy terms allow them to optionally draw the bonus during the policy's currency?