Rule 34 - GPF Settlement
Original Rule Text
RULE 34- MANNER OF PAYMENT OF AMOUNT IN THE FUND (1) When the amount standing to the credit of a subscriber in the Fund becomes payable, it shall be the duty of the Accounts Officer to make payment 1 [ ] as provided in sub-rule (3).
(2) If the person to whom, under these rules, any amount or policy, is to be paid, assigned or reassigned or delivered, is a lunatic for) whose estate a Manager has been appointed in this behalf under the-Indian Lunacy Act, 1912, the payment or reassignment or delivery shall be made to such Manager and not to the lunatic:
Provided that where no Manager has been appointed and 'the person to whom the sum is payable is certified by a Magistrate to be a lunatic, the payment shall under the orders of the Collector be made in terms of sub-section (1) of Section 95 of the Indian Lunacy Act, 1912, to the person having charge of such lunatic and the Accounts Officer shall pay only the amount which he thinks fit to the person having charge of the lunatic and the surplus, if any, or such part thereof, as he thinks fit, shall be paid for the maintenance of such members of the lunatic's family as are dependent on him for maintenance.
(3) Payments of the amount withdrawn shall be made in India only. The persons to whom the amounts are payable shall make their own arrangements to receive payment in India. The following procedure shall be adopted for claiming payment by a subscriber, namely:-
2 [
(i) Deleted]
(ii) The Head of Office/Department shall forward the 3 [details of the subscriber retiring or quitting service to the Accounts Officer indicating the recoveries effected against the advances which are still current and the number of instalments yet to be recovered and also indicate the withdrawals, if any, taken by the subscriber after the period covered by the last statement of the subscriber's account sent by the Accounts Officer.
(iii) The Accounts Officer shall, after verification with the ledger account, issue an authority for the amount 4 [payable to the subscriber] at least a month before the date of superannuation but payable on the date of superannuation.
(iv) The authority mentioned in Clause
(iii) will constitute the first instalment of payment. A second authority for payment will be issued as soon as possible after superannuation. This will relate to the contribution made by the subscriber subsequent to the amount mentioned in the 5 [details forwarded by the Head of Office/Department under Clause (ii)] plus the refund of instalments against advances which were current at the time of the 1 [submission of details by the Head of Office].
(v) After forwarding the 6 [details referred to in Clause (ii)] for final payment to
the Accounts Officer, advance/withdrawal may be sanctioned but the amount of advance/withdrawal shall be drawn on an authorization from the Accounts Officer concerned who shall arrange this as soon as the formal sanction of sanctioning authority is received by him.
NOTE.-When the amount standing to the credit of a subscriber has become payable under Rules 31, 32 or 33, the Accounts Officer shall authorize prompt payment of the amount in the manner indicated in sub-rule (3).
1. The words "on receipt of a written application in this behalf deleted vide Notification No. 20 (12)/94-P. & PW., (E), dated the 15th November, 1996, published as S.O. No. 3228 in the Gazette of India, dated the 23rd November, 1996. 2. Deleted vide Notification No. 20 (12)/94-P. & P. W. (E), dated the 15th November, 1996, published as S.O. No. 3228 in the Gazelle of India, dated the 23rd November, 1996. 3. Substituted vide Notification No.20(12)/94-P&PW(E) dated 15.11.96 notified vide SO No.3228 dated 23.11.96 4. Substituted vide Notification No.20(12)/94-P&PW(E) dated 15.11.96 notified vide SO No.3228 dated 23.11.96 5. Substituted vide Notification No.20(12)/94-P&PW(E) dated 15.11.96 notified vide SO No.3228 dated 23.11.96 6. Substituted vide Notification No.20(12)/94-P&PW(E) dated 15.11.96 notified vide SO No.3228 dated 23.11.96 7. Substituted vide Notification No.20(12)/94-P&PW(E) dated 15.11.96 notified vide SO No.3228 dated 23.11.96
What This Means
This rule explains how your General Provident Fund (GPF) money is paid out when you leave government service, typically upon retirement. The main responsibility for ensuring payment lies with the Accounts Officer. They will process your funds based on information provided by your Head of Office or Department.
The payment process usually involves two stages. Your Head of Office will send your final financial details, including any outstanding advances or recent withdrawals, to the Accounts Officer. The Accounts Officer will then verify these details and issue an authorization for the main portion of your GPF at least one month before your retirement date, making it payable on that day. A second, smaller payment will follow soon after your retirement to cover any contributions you made or advances you repaid in your final days of service.
It's important to note that all GPF payments must be made and received within India. If the person entitled to the GPF is certified as mentally unsound, the payment will not go directly to them. Instead, it will be paid to a legally appointed manager or, if no manager exists, to the person caring for them, under specific orders from the Collector, with provisions to ensure the support of the mentally unsound person's dependents.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The Accounts Officer is responsible for initiating GPF payments when an employee retires or leaves service.
- 2Your Head of Office or Department must provide timely financial details to the Accounts Officer to facilitate the payment process.
- 3GPF payments are typically made in two installments: a major portion authorized before retirement (payable on retirement day) and a final adjustment after retirement.
- 4All GPF payments must be received within India; recipients are responsible for making arrangements to collect the funds in India.
- 5Special procedures are in place for payments to individuals certified as mentally unsound, involving a legal manager or a designated caregiver under official orders.
Practical Example
Mr. Suresh Kumar, an Assistant Section Officer in the Ministry of Health and Family Welfare, is due to retire on June 30, 2024. His Head of Office, Ms. Anjali Sharma, compiles all his final GPF details, including his last few months' contributions and the remaining balance of an advance he had taken. By May 15, 2024, Ms. Sharma forwards these comprehensive details to the Accounts Officer, Mr. Rajesh Gupta.
After verifying Mr. Kumar's ledger account, Mr. Gupta issues an authority for Rs. 35,00,000 (the bulk of Mr. Kumar's GPF) on May 28, 2024, clearly stating that this amount is payable on June 30, 2024, his retirement day. Mr. Kumar receives this amount in his bank account on his last day of service. A few weeks later, in mid-July, Mr. Gupta processes the contributions Mr. Kumar made in June and a small refund from an advance repayment, issuing a second authority for Rs. 85,000. Mr. Kumar, who resides in Delhi, ensures his bank account is active to receive this final installment.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
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 GPF Rule 34, what information must the Head of Office/Department forward to the Accounts Officer regarding a retiring subscriber?