New guidelines issued on payment of GPF, important information for retired employees, see details

New guidelines issued on payment of GPF, important information for retired employees, see details: An important news is coming out for central employees! After the increase in dearness allowance, the central government has issued a clarification regarding the disbursement process of General Provident Fund for government employees after retirement!

In the new instructions issued by the Department of Pension and Pensioners Welfare on October 25, information has been given about delay in GPF payment! And interest eligibility on such delay! The Department of Pension and Pensioners Welfare has issued a memorandum clarifying the payment of GPF to retired government employees!

In which information has been given about whether interest is payable on GPF after retirement or not! These instructions emphasize the need to work on time at every stage from preparing the retirement list to issuing pension payment order!

The details of payment of interest on delayed GPF final payment for retiring personnel are also given, which indicates the duties of the concerned authorities and the consequences of delay in disbursement.

General Provident Fund – Key steps to clarify on GPF disbursement to retired employees
Obligation to pay timely – Rule 34 of the General Provident Fund Central Services Rules, 1960 mandates that the Accounts Officer should ensure that the GPF amount is paid promptly on the retirement of the subscriber.

Unconditional disbursement – The GPF balance is the sole property of the retired Government employee and its disbursement is unaffected by any pending disciplinary proceedings.

Interest on delayed payment – Rule 11(4) states that if the GPF balance is not paid at the time of retirement, interest should be applied for the period beyond the retirement date.

Retired Employees – Interest Payment Sanction Procedure
The Pay and Accounts Office may sanction interest for delay up to six months after retirement. Delays of more than six months require approval from the Head of the Accounts Office for interest payment. While delays of more than one year require authorization from the Controller of Accounts/Financial Advisor.

Increase in delay – Matters related to interest payment will be referred to the Secretary of the concerned administrative ministry or department. So that additional financial burden due to delay in GPF payment can be prevented.

Accountability – The Secretary will assign responsibility at each stage of the GPF payment process to prevent delays, avoid unnecessary interest payments and ensure timely disbursement.

General Provident Fund – GPF
GPF is for government employees. In this, accounts of temporary and permanent employees working continuously for one year are opened for the government. Employees have to contribute at least 6% of their salary in GPF. Provided he is not suspended.

After this, they get a lump sum amount on retirement. If needed, the employee can withdraw a fixed amount from GPF and deposit it later. There is no tax on this. Currently 7.1% interest is being given on GPF!