Comprehensive Guidelines Released for General Provident Fund (GPF) Management

The Finance Secretary has introduced updated guidelines aimed at streamlining the administration of General Provident Fund (GPF) accounts. These guidelines, addressed to all departmental heads, specify the procedures for utilizing GPF funds, file management, and employee benefits. The directives also provide instructions regarding the recovery of any funds owed by employees. A minimum contribution equivalent to 12% of an employee’s emoluments is mandated. However, employees can contribute additional amounts. Emoluments, as defined in service rules, include salary, leave salary, and subsistence grants, but exclude dearness allowance. GPF funds can be used for a variety of purposes, including weddings, medical expenses, educational pursuits, and real estate acquisitions. Separate accounting is mandated for GPF and Departmental Provident Fund (DPF) accounts. Employees receive ledger slips annually, including interest calculations, and heads of departments submit a consolidated list to the Accountant General. All government employees must designate a beneficiary upon joining, and any updates to this designation must be communicated. GPF contributions will be stopped four months prior to retirement. In the event of duplicate account numbers, the first account will be considered valid. After retirement, the existing GPF account will be closed upon final payment, and a new account opened for re-employed individuals. Employees must update their passbooks a year before retirement, and all entries require verification. Contribution deductions will cease four months before retirement. Employees are advised to deposit any missing credits into their GPF accounts. Those transitioning from DPF to GPF must ensure a seamless fund transfer. The Accountant General must be notified within a month of changes such as retirement or death. For deceased employees, final withdrawals require a death certificate and a valid nomination. Interest on GPF is paid up to the month before payment or six months after the payment becomes due, whichever is earlier. In exceptional cases, the administrative department can approve interest payments beyond this timeframe, with proper justification. A crucial requirement is that department and office heads must submit an annual list to the Accountant General by July 1st. This list must contain the names, account numbers, and retirement dates of all employees scheduled to retire within the subsequent 12 months.