Rule 31 - GPF Transfer Rules
Original Rule Text
RULE 31- FINAL WITHDRAWAL OF ACCUMULATIONS IN THE FUND When a subscriber quits the service, the amount standing to his credit in the Fund shall become payable to him:
Provided, that a subscriber, who has been dismissed from the service and is subsequently reinstated in the service shall, if required to do so by the Government, repay any amount paid to him from the Fund in pursuance of this rule, with interest thereon at the rate provided in Rule 11 in the manner provided in the proviso to Rule 32. The amount so repaid shall be credited to his account in the Fund.
EXPLANATION I.- A subscriber who is granted refused leave shall be deemed to have quit the service from the date of compulsory retirement or on the expiry of an extension of service.
EXPLANATION II.- A subscriber, other than one who is appointed on contract or one who has retired from service and is subsequently reemployed, with or without a break in service, shall not be deemed to quit the service, when he is transferred without any break in service to a new post under a State Government or in another department of the Central Government (in which he is governed by another set of Provident Fund Rules) and without retaining any connection with his former post. In such case, his subscriptions together with interest thereon shall be transferred-
(a) to his account in the other Fund in accordance with the rules of that Fund, if the new post is in another department of the Central Government, or
(b) to a new account under the State Government concerned if the new post is under a State Government and the State Government consents, by general or special order, to such transfer of his subscriptions and interest.
NOTE.- Transfers shall include cases of resignation from service in order to take up appointment in another Department of the Central Government or under the State Government without any break and with proper permission of the Central Government. In cases where there has been a break in service, it shall be limited to the joining time allowed on transfer to a different station.
The same shall hold good in cases of retrenchments followed by immediate employment whether under the same or different Government.
EXPLANATION III.- When a subscriber, other than one who is appointed on contract or one who has retired from service and is subsequently re-employed, is transferred, without any break, to the service under a body corporate owned or controlled by Government, or an autonomous organization, registered under the Societies Registration Act, 1860, the amount of subscriptions together with interest thereon, shall not be paid to him but shall be transferred with the consent of that body, to his new Provident Fund Account under that body.
Transfers shall include cases of resignation from service in order to take up appointment under a body corporate owned or controlled by Government or an autonomous organization, registered under the Societies Registration Act, 1860, without
any break and with proper permission of the Central Government. The time taken to join the new post shall not be treated as a break in service if it does not exceed the joining time admissible to a Government servant on transfer from one post to another.
Provided that the amount of subscription together with interest thereon, of a subscriber opting for service under a Public Enterprise may, if he so desires, be transferred to his new Provident Fund Account under the Enterprise if the concerned Enterprise also agrees to such a transfer. If, however, the subscriber does not desire the transfer or the concerned Enterprise does not operate a Provident Fund, the amount aforesaid shall be refunded to the subscriber.
What This Means
When a government officer permanently leaves service, such as through retirement or resignation, the total amount accumulated in their General Provident Fund (GPF) account will be paid out to them. However, there's an important exception: if an officer was previously dismissed from service and later reinstated, they might be required by the Government to repay any GPF amounts they withdrew during their dismissal period, along with interest. This repaid money will then be put back into their GPF account.
This rule also details what happens when an officer moves between different government entities without a break in service. If you transfer from one Central Government department to another (even if they have different Provident Fund rules), or to a post under a State Government, your GPF balance and interest will typically be transferred directly to your new Provident Fund account, rather than being paid out to you. This also applies if you resign from your current post with proper permission to take up a new role in another Central or State Government department, provided there's no significant gap in your service.
Similarly, if you move to a Public Sector Undertaking (PSU) or an autonomous organization controlled by the Government, your GPF balance will generally be transferred to your new Provident Fund account there, provided the new organization agrees to accept it. A key point for transfers to Public Enterprises (PSUs) is that you have a choice: you can opt to have your GPF transferred, or if you prefer not to transfer it (or if the PSU doesn't have its own Provident Fund), the entire amount will be refunded directly to you.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Your full GPF balance is paid to you when you permanently quit government service, such as upon retirement or resignation.
- 2Officers who were dismissed and later reinstated may be required to repay any GPF withdrawals made during their dismissal, with interest.
- 3If you transfer without a break to another Central Government department or a State Government department, your GPF balance is transferred to your new fund, not paid out.
- 4Transfers to government-owned corporations or autonomous bodies also typically involve transferring your GPF balance, with the new body's consent.
- 5When moving to a Public Enterprise, you have the option to either transfer your GPF to their fund (if they agree) or receive a direct refund.
- 6Resigning to take up another government or PSU role with proper permission and no significant break in service is treated as a transfer for GPF purposes.
- 7The term 'quitting service' includes cases of compulsory retirement after being granted refused leave.
Practical Example
Consider Ms. Kavita Sharma, an Assistant Section Officer in the Ministry of Home Affairs. She decides to take voluntary retirement after 22 years of dedicated service. According to Rule 31, the entire amount standing to her credit in her General Provident Fund account, which is ₹28,00,000, will be processed and paid out to her upon her official date of retirement.
Now, let's look at Mr. Alok Singh, an Executive Engineer in the Central Public Works Department (CPWD). He receives an offer and successfully transfers to the Public Works Department of the Uttar Pradesh State Government, without any break in service. In this scenario, his GPF balance of ₹15,00,000 will not be paid to him. Instead, it will be transferred directly to a new Provident Fund account under the Uttar Pradesh State Government, provided the State Government consents to such a transfer.
Finally, imagine Ms. Ritu Devi, a Senior Accountant in the Controller General of Accounts office. She resigns from her Central Government service to join 'National Power Grid Ltd.', a Public Sector Undertaking, as a Finance Manager. She has a GPF balance of ₹12,00,000. Under Rule 31, Ms. Devi has a choice: she can request that her ₹12,00,000 GPF balance be transferred to National Power Grid Ltd.'s Provident Fund, provided the PSU agrees to accept it. Alternatively, if she doesn't wish to transfer it, or if National Power Grid Ltd. does not operate its own Provident Fund, the entire ₹12,00,000 will be refunded directly to Ms. Devi.
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 31 of the General Provident Fund Rules, which of the following categories of subscribers is NOT eligible for the transfer of their GPF account upon transfer to another government department or State Government?