Rule 5 - GPF Nomination | KartavyaDesk
Original Rule Text
(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:
What This Means
Rule 5 of the General Provident Fund (GPF) Rules deals with nominations and allows you, as a subscriber, to plan for contingencies. Essentially, it lets you specify a backup plan within your nomination. You can state that if your primary nominee passes away before you do, their share of the GPF money should go to another person or people you name. This is particularly useful for ensuring your family's financial security. If you have a family, the backup nominee(s) must also be family members. The rule also allows you to specify conditions under which the nomination becomes invalid, giving you control over when and how your GPF benefits are distributed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Allows for specifying a secondary nominee in case the primary nominee predeceases the subscriber.
- •If the subscriber has a family, the secondary nominee(s) must be family members.
- •The subscriber must specify the share payable to each secondary nominee to cover the entire amount.
- •The nomination can be made invalid upon the happening of a specified contingency.
- •This rule ensures flexibility and control over GPF distribution in unforeseen circumstances.
Practical Example
Rajesh, a government employee, nominates his wife, Priya, as the primary nominee for his GPF. Under Rule 5(a), he also specifies that if Priya predeceases him, her share should be equally divided between their two children, Rohan and Reena. He clearly states that Rohan and Reena will each receive 50% of Priya's share if she is no longer alive when Rajesh passes away. Later, Rajesh gets divorced and remarries. Under Rule 5(b), he can specify that his original nomination becomes invalid upon his remarriage, allowing him to create a new nomination reflecting his current family situation.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can I nominate someone outside my family as a secondary nominee?▼
What happens if I don't specify the share for each secondary nominee?▼
Can I change the contingency that makes my nomination invalid?▼
What constitutes 'family' under the GPF rules?▼
If my primary nominee dies, and I haven't specified a secondary nominee, what happens to the GPF amount?▼
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?
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