The Finance Secretary has issued essential guidelines for the proper maintenance and management of GPF (General Provident Fund) accounts. The directives, issued to department heads across all government offices, outline the benefits available to employees from their GPF accounts and the procedures for processing related files. The guidelines also address the recovery of funds from employees and the issuance of recovery notices, if applicable. According to the guidelines, a minimum deduction equivalent to 12% of emoluments is mandated as per Rule 11, sub-rule (1) (b) of the General Provident Fund Rules, 1955. However, the government may allow subscribers to deposit a higher amount, not exceeding their emoluments. Emoluments are calculated based on salary, leave salary, or subsistence grant as defined in the service rules, and any remuneration earned during external service. Dearness allowance is excluded. Funds from GPF accounts can be utilized for various purposes, including marriage expenses of the employee and their children; medical expenses of the employee, spouse, children, and dependent parents; construction or repair of residential buildings; and covering expenses for higher education, including foreign travel, for the employee or their children. Additionally, employees can use the funds to purchase residential plots or constructed houses. Separate accounting is required for employees with GPF accounts and those with Departmental Provident Fund (DPF) accounts. DPF accounts must be maintained separately by the office head. At the end of each financial year, a ledger slip (including interest calculation) of the departmental provident fund of the concerned government employees will be issued, and a consolidated list of interest calculations must be sent to the head of the department by April 30th each year. A certificate must be submitted with the May salary bill, confirming that the interest statements for the previous financial year have been sent to the head of the department. The head of the department is also required to consolidate the interest statements received from all subordinate offices and send them to the Accountant General by May 31st. A certificate must be submitted with the June salary bill, confirming that the interest statements for the previous financial year have been sent to the Accountant General. Upon joining government service, employees must compulsorily nominate a beneficiary for their GPF. The office head is responsible for ensuring this process is completed. Any changes in the nomination after marriage must be immediately communicated to the Accountant General through the office head and updated accordingly. Instructions have been given to follow the procedure of Rule-8. In cases of absence, unauthorized absence, etc., if salary has been withheld, the GPF deduction should be made from the salary at the time of its release. According to Chhattisgarh General Provident Fund Rule 10 (1), the deduction of the General Provident Fund from the salary will be stopped four months before the employee’s retirement. If an employee is erroneously allocated more than one General Provident Fund account number by the Accountant General, the first account number will be considered valid, and the other allocated account numbers must be canceled immediately. In all cases of re-appointment after retirement, the General Provident Fund account allocated to the government servant during their service period will be closed after the final payment after retirement. After this, a new General Provident Fund account will be opened, and the contribution amount will be deposited in it. The action of updating the General Provident Fund passbook will be done from one year before retirement. Before retirement, the employee must complete all entries in the General Provident Fund passbook (complete details regarding deductions and withdrawals of the entire service period – voucher number, date, gross amount, net amount, advance/partial final withdrawal) and get it verified from the head of the department / drawing and disbursing officer. The deduction of contributions will be stopped from the employee’s account four months before retirement. If there is any amount of missing credits in the General Provident Fund account of a government servant in previous years, it must be deposited in his account as soon as possible. This is to prevent any loss at the time of final payment. Government servants who were earlier members of the Departmental Provident Fund (DPF) and later became members of the GPF must transfer their DPF amount to the GPF within a specified timeframe. This is to avoid any problems at the time of the final payment of the General Provident Fund. In the event of voluntary retirement, separation from service, resignation, or death of an employee, the Accountant General’s office must be informed within one month. For the final withdrawal of deceased government servants, a certified copy of the employee’s death certificate and a valid nomination (uncontested) in favor of the nominee is mandatory. In the absence of this, it is mandatory to attach a competent succession certificate. Interest on the General Provident Fund will be paid up to the previous month in which the amount is paid or up to the end of 6 months after the month in which the amount becomes payable (due to retirement, death, resignation, etc.), whichever is earlier. In specific cases where it has not been possible to issue the final payment order of the General Provident Fund within 6 months of retirement due to unavoidable reasons, the administrative department will have the right to approve interest after a period of 6 months, clearly stating the reason for the delay. All head of departments and office heads must prepare a list on July 1st each year and send it to the Accountant General. This list should include the names, account numbers, and retirement dates of government servants retiring within 12 months from October 1st. This is to ensure the proper maintenance of General Provident Fund accounts, ensure payment to retired government servants within the prescribed time frame, and completely prevent the situation of a negative balance.
