New Regulations for General Provident Fund (GPF) Accounts Issued by Finance Secretary

The Finance Secretary has announced new regulations regarding the management of General Provident Fund (GPF) accounts, emphasizing proper maintenance and employee benefits. The guidelines, distributed to all department heads, detail the procedures for utilizing GPF funds and the necessary steps for file processing. The directives also include instructions for the recovery of any outstanding amounts from employees. The regulations mandate a minimum contribution of 12% of an employee’s emoluments, as per existing rules. However, employees are permitted to contribute more. Emoluments are defined as salary, leave salary, or subsistence allowance, excluding dearness allowance. GPF funds can be used for specific purposes, including marriages, medical expenses, educational pursuits, and property acquisition. Government employees with GPF accounts will have their accounts maintained separately from those using the Departmental Provident Fund (DPF). Each year, employees will receive ledger slips detailing interest calculations, and heads of departments must submit a consolidated list to the Accountant General. Employees are required to nominate beneficiaries upon joining government service, with any changes communicated promptly. GPF contributions will cease four months before retirement. Erroneous multiple account numbers will be addressed by prioritizing the first account. The existing GPF account is closed after final payment upon re-employment post-retirement, followed by the opening of a new account. Passbooks should be updated one year before retirement, and complete entries must be verified. Contributions will cease four months before retirement. Any missing credits must be deposited into the GPF accounts. Individuals transferring from the Departmental Provident Fund to GPF are required to ensure a smooth transfer of funds. The Accountant General must be notified within one month of specific employment changes, such as retirement or death. For deceased employees, a death certificate and a valid nomination are required for final withdrawals. Interest on GPF will be calculated up to the month prior to payment or six months after payment becomes due. Administrative departments can approve interest beyond the standard timeframe under certain circumstances. Department heads and office heads are required to submit a list of retiring employees to the Accountant General by July 1st each year, including their names, account numbers, and retirement dates.