Rule 5 - GPF Nomination
Original Rule Text
Rule 5 : NOMINATIONS 5. Nominations - (1) A subscriber shall, at the time of joining the Fund, send to the Accounts Officer through the Head of Office a nomination conferring on one or more persons the right to receive the amount that may stand to his credit in the Fund in the event of his death, before that amount has become payable or having become payable has not been paid:
Provided that where a subscriber is a minor, he shall be required to make the nomination only on his attaining the age of majority:
Provided further that a subscriber who has a family at the time of making the nomination shall make such nomination only in favour of a member or members of his family:
Provided further that the nomination made by the subscriber in respect of any other Provident Fund to which he was subscribing before joining the Fund shall, if the amount to his credit in such other fund has been transferred to his credit in the Fund, be deemed to be a nomination duly made under this rule until he makes a nomination in accordance with this rule.
(2) If a subscriber nominates more than one person under sub-rule (1), he shall specify in the nomination the amount or share payable to each of the nominees in such manner as to cover the whole of the amount that may stand to his credit in the Fund at any time.
(3) Every nomination shall be made in the Form set forth in the First Schedule. (4) A subscriber may at any time cancel a nomination by sending a notice in writing to the Accounts Officer. The subscriber shall, along with such notice or separately, send a fresh nomination made in accordance with the provisions of this rule.
(5) A subscriber may provide in a nomination-
(a) in respect of any specified nominee, that in the event of his predeceasing the subscriber, the right conferred upon that nominee shall pass to such other person or persons as may be specified in the nomination, provided that such other person or persons shall, if the subscriber has other members of his family, be such other member or members. Where the subscriber confers such a right on more than one person under this clause, he shall specify the amount or share payable to each of such persons in such a manner as to cover the whole of the amount payable to the nominee.
(b) that the nomination shall become invalid in the event of the happening of a contingency specified therein:
Provided that if at the time of making the nomination the subscriber has only one member of the family, he shall provide in the nomination that the right conferred upon the alternate nominee under Clause
(a) shall become invalid in the event of his subsequently acquiring other member or members in his family.
(6) Immediately on the death of a nominee in respect of whom no special provision has been made in the nomination under Clause
(a) of sub-rule (5) or on the occurrence of
any event by reason of which the nomination becomes invalid in pursuance of Clause
(b) of sub-rule (5) or the proviso thereto, the subscriber shall send to the Accounts Officer a notice in writing cancelling the nomination, together with a fresh nomination made in accordance with the provisions of this rule.
(7) Every nomination made, and every notice of cancellation given by a subscriber shall, to the extent that it is valid, take effect on the date on which it is received by the Accounts Officer.
NOTE.- In this rule, unless the context otherwise requires, "person" or "persons" shall include a company or association or body of individuals, whether incorporated or not. It shall also include a Fund such as the Prime Minister's National Relief Fund or any charitable or other Trust or Fund, to which nomination may be made through the Secretary or other executive of the said Funds or Trust authorized to receive payments.
What This Means
This rule explains how government officers contributing to the General Provident Fund (GPF) must choose who will receive their accumulated funds if they pass away before the money is paid out. This process is called 'nomination.'
When you first join the GPF, you must fill out a nomination form. If you are a minor, you'll do this once you become an adult. It's very important to know that if you have a family (like a spouse or children), you *must* nominate only members of your family. If you don't have a family, you can nominate other individuals, or even organizations like charities. If you name more than one person, you need to clearly state what percentage or share each person will receive, making sure it adds up to 100%.
You can change your nomination at any time by informing the Accounts Officer in writing and submitting a new form. You can also name alternate beneficiaries in case your primary nominee passes away before you. However, if you have other family members, these alternate beneficiaries must also be family members. If a nominee dies or your nomination becomes invalid for any reason, you are required to submit a new nomination promptly. Your nomination becomes legally effective the moment the Accounts Officer receives it.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1All GPF subscribers must nominate beneficiaries when joining the Fund, or upon attaining majority if a minor.
- 2If a subscriber has a family, nominations must exclusively be made in favor of family members.
- 3When nominating multiple persons, the specific share or amount for each must be clearly defined to cover the entire fund amount.
- 4Subscribers have the right to cancel and submit a fresh nomination at any time.
- 5Alternate nominees can be specified to receive the funds if the primary nominee predeceases the subscriber, subject to family member restrictions.
- 6A new nomination is mandatory if a nominee dies or the existing nomination becomes invalid.
- 7Nominations become effective only upon receipt by the Accounts Officer.
Practical Example
Ms. Priya Sharma, a newly appointed Section Officer, is completing her joining formalities. She is informed that she needs to fill out the General Provident Fund (GPF) nomination form. Priya is married and has two young children. According to Rule 5, she must nominate her family members. She decides to nominate her husband, Mr. Raj Sharma, for 50% of the fund, and her two children, Rohan and Meera, for 25% each. She also specifies that in the event her husband predeceases her, his share should go equally to Rohan and Meera. She submits the form to her Head of Office, who then forwards it to the Accounts Officer.
A few years later, Priya has another child, Kavya. She remembers the rule about family members and realizes she needs to update her nomination. She promptly fills out a new form, canceling the old one and including Kavya as a beneficiary, adjusting the shares accordingly, and submits it to the Accounts Officer. This ensures her GPF funds will be distributed as per her latest wishes.
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 Rule 5 of the General Provident Fund Rules, if a subscriber wishes to nominate a secondary beneficiary in case the primary nominee predeceases them, and the subscriber has a family, who can be nominated as the secondary beneficiary?