Para 12.18 — MSO (A&E)
Original Rule Text
12.18 When a subscription is paid for the first time or a revised rate is adopted it should be seen that the amount of subscription is within the minimum and maximum rates prescribed by the rules of the Fund. In the case of subscriptions paid subsequently, it should be seen that the amount paid agrees with the rate adopted in the first month of the year except when a variation of rate is allowed during the course of the year under the rules of the Fund. For all months of the year it should also be seen that all compulsory subscriptions are paid except when an exemption or a lower rate is allowed. Whenever a subscription is discontinued by a subscriber, it should be seen that the discontinuance is permissible.
NOTE:-Any overpayment or short payment of subscription to the Fund in any one month may be adjusted by deduction from, or addition to, the subscriptions, in the subsequent month, wherever possible. There is, however, no warrant for refusal of cash payment or recovery if a subscriber so desires.
- TEMPORARY WITHDRAWALS
What This Means
When a subscription is paid for the first time or the rate changes, the Fund Section must verify it falls within the minimum and maximum limits prescribed by the fund rules. For subsequent months, the subscription should match the rate adopted in the first month of the year unless the rules permit mid-year changes. Any discontinuance of subscription must also be checked for permissibility. Overpayments or short payments in one month can be adjusted in the next month, and cash adjustments cannot be refused if the subscriber requests them.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1First subscription or rate change must be within prescribed min/max limits
- 2Subsequent months must match the rate adopted at the start of the year (unless mid-year variation is allowed)
- 3Discontinuance of subscription must be verified as permissible under fund rules
- 4Over/short payments may be adjusted in the following month
- 5Cash payment or recovery cannot be refused if the subscriber desires it
Practical Example
An employee adopts a GPF subscription rate of Rs 5,000 per month at the start of the financial year. In June, his pay bill shows a deduction of only Rs 4,500. The Fund Section flags this as a short payment and ensures that the Rs 500 shortfall is recovered in July's pay bill, in addition to the regular Rs 5,000 subscription.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can a subscriber change their subscription rate mid-year?▼
What happens if there is an overpayment of subscription in one month?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.