GPF in Termination Case

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This topic contains 3 replies, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 4 months, 1 week ago.

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  • #4166

    Sir what if an Ex-Employee who got terminated from duties (central Govt.)apply for his/her GPF after 10 years of last date of employment. Would he/she will get the Interest till current Date or till the last month of his/her employment. he/she never applied for GPF earlier and for applied first time after 10 years. What is the rule of GPF in case of termination.

  • #4172

    As per Rule 11(4) of General Provident Fund (Central Service) Rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also. While interest for the first six months beyond retirement can be allowed by the PAO in the normal course, approval of Head of the accounts office is required for payment of interest beyond six months and that of Controller of Account/Financial Adviser beyond a period of one year.

    [Note: See the Government of India’s Guidelines in this regard.]

    The same rule should apply in respect of termination of service also.

    It may also be noted that the requirement of submitting a written application by the retiring Govt. servant for GPF final payment has been dispensed with vide Ministry of Personnel, PG & Pensions, Department of Pension & Pensioners’ Welfare Notification No. 20(12)/94-P&PW (E) dated 15.11.1996 and notified under S.O NO.3228 dated 23.11.1996.

    Further, please note that Rule 34 of General Provident Fund (Central Service) Rules clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment.

    In case of delay in payment of the GPF amount, if any additional interest is required to be paid to the subscriber, the Government orders require action to be taken against Government servant or servants who are found responsible for the delay in the payment of General Provident Fund.

    In view of these provisions, you can request for payment of interest till the date of final settlement of your GPF amount.

         


    Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers.

  • #4173

    Thank you so much Dr. Dhamija for the information and for the time you spared to resolve my query.

    Sir but the point which I need to add here that employee did not submitted any application in 10 years for the withdrawal of GFP and after 10 years he/she submitted the request. Now my question is that we should give that employee the amount with interest of those 10 years or the amount with interest calculated according to the last date of employment?

    Kindly enlighten me on this.

    • #4174

      Please read my answer carefully. This question is already replied. I have already pointed out that there is no requirement for the Government servant to submit a written application for getting the GPF amount. It is the duty of the Accounts Officer to initiate process of payment of GPF amount when it becomes due. So, if it became due 10 years back, the Accounts Officer was duty bound to process it. If it has not been paid for 10 years, then the interest may have to be paid.     


      Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers.

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