GENERAL PROVIDENT FUND by accinent

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									                            CHAPTER-VI

                             (Pages 1 to 18)




Source:

(i)       A Hand Book for Drawing & Disbursing Officers, Revised Edition
          1988, Management Services Division, Pakistan Public
          Administration Research Centre, Islamabad.

(ii)      A Hand Book of Rules & Instructions, Applicable to NWFP
          Government Employees, 2000 by Amir Badshah, Accounts
          Officer, Audit & Accounts Training Institute, Peshawar.




                                    0
                                GENERAL PROVIDENT FUND
    (NORTH-WEST FRONTIER PROVINCE, SERVICES) RULES.



1)          Introduction:-                     G.P.Fund has been made a compulsory saving scheme for
            all civil servants under the G.P.Fund Act, 1925 and has a privileged position and
            it can not be paid towards fine or attachment under any *decree or order of any
            Court of Law.


2)          Definitions:-
            In these rules:-
            a)         Family means:-
            i)         in the case of a male subscriber, the wife or wives and children of a
                       subscriber, and the widow, or widows, and children of a deceased son of
                       the subscriber.

            ii)        in the case of a female subscriber, the husband and children of a
                       subscriber, and the widow or widows and children of a deceased son of a
                       subscriber;

Note:-I"Children: means legitimate children.
            b)         Fund means the General Provident Fund.
            c)         Rule means the "General Provident Fund (NWFP Services) rules".

3)          Nominations:-
            i)         A **subscriber shall, as soon as may be, after joining the fund, send to the
                       Account Officer, a nomination conferring on one or more persons the right
                       to receive the amount that may stand to his credit in the fund, in the event
                       of his death before that amount has become payable, or having become
                       payable has not been paid:

*
     order or verdict of Govt.
**
     one who's subscribes or pays the money.



                                                           1
       Provided that if, at the time of making the nomination the subscriber has a
family, the nomination shall not be in favour of any person or persons other than
the members of his family.


ii)    If a subscriber nominates more than one person under sub-rule (I) he shall
       specify in the nomination the amount or share payable to each of the
       nominees in such manner as to cover the whole of the amount that may
       stand to his credit in the fund at any time.
iii)   Every nomination shall be in prescribed form.


iv)    A subscriber may at any time cancel a nomination by sending a notice in
       writing to the Accounts Officer.


       Provided that the subscriber shall, alongwith such notice send a fresh
nomination in prescribed form.

v)     A subscriber shall alongwith every nomination made by him under this
       rule send to the Account Officer a contingent notice of cancellation in
       prescribed form.

vi)    Immediately on the occurrence of any event by reason of which the
       contingent notice of cancellation becomes operative and the nomination to
       which that notice relates consequently stands cancelled the subscriber
       shall send to the Account Officer a fresh nomination in prescribed form.


vii)   Every nomination made, and every notice of cancellation given, by a
       subscriber shall, to the extent that it is valid, take effect on the date on
       which it is received by the Account Officer. Rule.8




                                      2
4)   UNIFORM RATES OF SUBSCRIPTION TOWARDS G.P.FUND
     a).      The G.P.Fund deductions from the pays of the employees on the basis of
              new rates shall be made W.E from Ist June 1995 paid in July, 1995 and
              onwards until further orders as follow:
     ----------------------------------------------------------------------------------------
     Scale       Rate of monthly                  Scale             Rate of monthly
                 subscription.                                      subscription.
     ----------------------------------------------------------------------------------------
     B-1               Rs. 50            B-12                       Rs.145
     B-2               Rs. 85            B-13                       Rs.250
     B-3               Rs. 85            B-14                       Rs.265
     B-4               Rs. 90            B-15                       Rs.285
     B-5               Rs. 95            B-16                       Rs.325
     B-6               Rs.100            B-17                       Rs.450
     B-7               Rs.100            B-18                       Rs.560
     B-8               Rs.110            B-19                       Rs.780
     B-9               Rs.120            B-20                       Rs.920
     B-10              Rs.125            B-21                       Rs.1040
     B-11              Rs.130            B-22                       Rs.1120


     b)       There shall be no option to postpone subscription to the above fund either
              during leave (except extraordinary leave without pay) or during the
              training period. In cases of suspension, recovery of arrears of subscription
              towards the fund will be effected if re-instatement takes place. However,
              the subscriber shall be allowed the option of paying in one sum, or in
              installments, any sum not exceeding the maximum amount of arrears
              subscriptions permissible for that period.
                                 Rule-11 read with No. FD.SO(SR-IV)1-43/79/Vol-II,dated 12.3.1995.




                                                 3
5)           When a subscriber is transferred to Foreign Service or sent on deputation out of
             Pakistan he shall remain subject to the rules of the Fund in the same manner as if
             he were not so transferred or sent on deputation. (Rule-12)


6)           Realization of Subscriptions:-
             a)         When emoluments are drawn from a Government treasury in Pakistan or
                        in England or from a Colonial treasury recovery of subscriptions on
                        account of these emoluments and of the principal and interest of advances
                        shall be made from the emoluments themselves; except that, when
                        emoluments other than *sterling overseas pay are so drawn in Pakistan
                        deductions in respect of sterling overseas pay when admissible, shall be
                        made in Pakistan.


             b)         When emoluments are drawn from any other source, the subscriber shall
                        forward his dues monthly to the Account Officer. (Rule-13)


7)            Subscriber's Account and Interest.
             a)         An account allotted by Accounts Officer shall be prepared in the name of
                        each subscriber and shall show the G.P.Fund subscription with interest.


             b)         Subject to the provisions of para (f) below, Government shall pay to the
                        credit of the account of the subscriber interest at such rate as may be
                        determined for each year according to the method of calculation
                        prescribed from time to time by the Government of Pakistan.


             c)         Interest shall be credited with effect from the last day in each year in the
                        following manner:-




*
    currency note of British pound



                                                     4
       i)       on the amount at the credit of a subscriber on the last day of the
                preceding year, less any sums withdrawn during the current year---
                --interest for twelve months;
       ii)      On sums withdrawn during the current year-----interest from the
                beginning of the current year up to the last day of the month
                preceding the month of withdrawal;

       iii)     on all sums credited to the subscriber's account after the last day of
                the preceding year-----interest from the date of deposit upto the end
                of the current year;

       iv)      the total amount of interest shall be rounded to the nearest whole
                rupee(fifty paisa or above (Counting as the next higher rupee).

       Provided that when the amount standing at the credit of a subscriber has
become payable, interest shall thereupon be credited under this sub-rule in respect
only of the period from the beginning of the current year or from the date of
deposit, as the case may be, up to the date on which the amount standing at the
credit of the subscriber became payable.


Interest:- Sum of the progressive balance x Rate of interest x 1/12
                                                        100
d)     In this rule, the date of deposit shall in the case of recovery from
       emoluments be deemed to be the first day of the month in which it is
       recovered; and in the case of an amount forwarded by the subscriber shall
       be deemed to be the first day of the month of receipt, if it is received by
       the Account Officer before the fifth day of that month, but if it is received
       on or after the fifth day of that month, the first day of the next succeeding
       month.

e)     In addition to any amount to be paid under Rules, 29,30 or 31. (See
       S.No.15) interest thereon up to the end of the month preceding that in




                                       5
             which the payment is made shall be payable to the person to whom such
             amount is to be paid;

             Provided that where the Account Officer has intimated to that person or
      his agent) a date on which he is prepared to make payment in cash, or has posted a
      cheque in payment to that person, interest shall be payable only upto the end of
      the month preceding the date so intimated or the date of posting the cheque, as the
      case may be;

             Provided further that if the person entitled to the payment does not send an
      application in that behalf with in 6 months of the date on which the amount
      standing to the credit of the subscriber has become payable, interest shall not be
      payable beyond the end of the sixth month after the month in which the amount
      became payable.


      f)     Interest shall not be credited to the account of a Muslim subscriber if he
      informs the Account Officer that he does not wish to receive it, but if he
      subsequently asks for interest, it shall be credited with effect from the first day of
      the year in which he asks for it.


Government Instructions: -
             Under the existing rules, interest is not credited by North-West Frontier
      Province Government to the Provident Fund Account of a Muslim subscriber if he
      does not wish to receive it. The question of granting interest free loans to such
      subscribers had been under consideration of the Government for sometime. It has
      now been decided that no interest may be charged by Government on the house
      building and conveyance advances drawn by Government servant whose deposits
      in the Provident Fund account carry no interest, subject to the following
      conditions: -

      i)     the Government servant has not received interest on his Provident Fund
             accumulations prior to the drawal of the advance from the Government;



                                            6
      ii)    the interest to be remitted under these orders shall not exceed the amount
             of interest foregone by the Government servant concerned on his
             Provident Fund Account upto, the date on which the interest on
             Government loans would become due for payment;

      iii)   If at any time in future the Government servant who has availed himself of
             this concession chooses to take interest on his provident fund deposits, he
             will be required to pay in full to the Government, the amount of interest
             accrued on the advances drawn by him from the Government.

             The above decision will also be applicable in the case of Government
      servants who have already drawn advances from the Government but the recovery
      of interest charges accrued thereon has not been made from them.

@-g) "Where the payment of the *accumulations in the fund or any part thereof
      standing to the credit of a subscriber is delayed for administrative reasons (such as
      accounting for the missing credits, transfer of account from one audit office to
      another audit office or other similar reasons) interest on the accumulations or, as
      the case may be, the part thereof shall be payable upto the end of the month
      preceding that in which the payment of accumulations or any part thereof is
      made".(Rule-9 & 14) read with @ Para(a) of FD letter No. FD/SO(SR-IV)1-
      43/Vol-II dated 20.5.1991.


ADVANCES FROM THE FUND
8)    Temporary Advances:-

             A temporary advance upto 3 months pay or half the amount may be
      granted to a subscriber from the amount standing to his credit in the Fund, which
      ever is less at the discretion of the prescribed authority subject to the following
      conditions: -




                                            7
           a)         No advance shall be granted unless the sanctioning authority is satisfied
                                           **
           that the applicant's              pecuniary circumstances justify it, and that it will be
           expended on the following object(s) and not otherwise:-

           i)         to pay expenses incurred in connection with the prolonged illness of the
                      applicant or any person actually dependent on him;

           ii)        to pay for the overseas passage for reasons of health or education of the
                      applicant or any person actually dependent on him;

           iii)       to pay ***obligatory expense on a scale appropriate to the applicant's status
                      in connection with marriages, funerals or ceremonies which by his religion
                      it is incumbent on him to perform;

           iv)        to meet other expenditure which is considered by the sanctioning authority
                      to be essential and unavoidable. (Rule-15)

9)                    An advance for construction or purchase of a house for occupation by the
           subscriber himself or his family or for making additions to or alterations in an
           existing house, owned by the subscriber, whether or not constructed or purchased
           with a house building advance, may be granted to him from the amount standing
           to his credit in the Fund at the discretion of the appropriate authority subject to the
           following conditions namely: -

                      The advance shall in no case exceed thirty-six months pay of the
           subscriber or eighty percent of the amount at the credit of the subscriber in the
           fund, whichever is less. (Rule-16)




  *
     growth of contributed money due to interest.
**
    monitory demands of the employee
***
    necessary need



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10)          SECOND ADVANCE
                       A second advance may be allowed but only in rare and exceptional cases
             and subject to the following conditions: -


             i)        A second advance shall be sanctioned by the authority next above the
                       sanctioning authority.


             ii)       The authority sanctioning the second advance shall record reasons for
                       sanctioning the second advance; and


             iii)      The outstanding balance of the first advance with interest, if any, shall be
                       recovered from the amount of the second advance being sanctioned so that
                       only one advance remains outstanding at one time.
                                                     No.FD/SO(SR-IV)1-43/Vol-II, dated 20.5.1991



11)          NONREFUNDABLE ADVANCES AT AGE OF 45 YEARS BUT BEFORE
             ATTAINING THE AGE OF 50 YEARS.


             1)               After a subscriber has attained the age of 45 years but before
             attaining the age of 50 years, the competent authority may, at its discretion, grant
             him non-refundable advance for any of the purposes specified below upto 80% of
             the balance in the account of the subscriber on the date of application for advance:
             -


             a)        For construction of a house on a piece of land owned by the subscriber or
                       by the spouse or children of the subscriber or by any of them, subject to
                       the condition that in case the house is sold or *otherwise alienated by
                       subscriber without repayment of advance and before his retirement from
                       service, the subscriber shall forthwith repay into the fund, the entire



*
    converted by subscriber



                                                    9
                      amount of the advance together with interest accrued thereon in a
                      lumpsum.


             b)       For purchase of house for his residence, subject to the condition that:


                      i)     In case the house is not purchased within three months of the
                      drawal of advance, the subscriber shall forthwith repay into the fund the
                      entire amount of advance together with the interest accrued thereon, in a
                      lumpsum.


                      ii)    The advance may be drawn in full at once but satisfactory evidence
                      shall be produced before the Audit Officer to show that the advance for
                      the purchase of the house has been spent within three months of its drawal.
                      This can be done by showing to the Audit Officer a duly executed receipt
                      for the amount paid.


             c)       For purchase of Agricultural Land from Government.


             d)       For any of the following purposes namely:

                             *
                      i)      To defray expenses in connection with the prolonged illness of the
                      subscriber or a member of his family actually dependent upon him.


                      ii)    To pay for the overseas passage of the subscriber for reason of
                      health or for the performance of Haj.


                      iii)   To pay for the overseas passages for reason of Education of any
                      member of the subscriber's family actually dependent on him and such
                      other lumpsum expenditure as admission or advance tuition fees of any
                      such member.

*
    to pay the cost



                                                   10
             iv)     To pay obligatory expenses on a scale appropriate to the
             subscriber's status in connection with funerals or ceremonies which by his
             religion; it is incumbent upon him to perform or in connection with the
             marriage of any member of his family actually dependent on him.


             v)      To repay loan taken from a financial institution subject to the
             condition that: -


             "Where an advance is applied to repay a loan taken from a financial
      institution the sanctioning authority shall satisfy itself of the amount of loan taken
      from a financial institution and the balance payable. The amount of advance shall
      not in any case, exceed the balance payable by the subscriber. The subscriber
      shall, within a period of two weeks from the date of drawal of the advance to
      repay the loan taken from a financial institution, produce satisfactory evidence
      before the Account Officer to show that the advance has been utilized for the
      purpose for which it was drawn, failing which the entire amount will be
      refundable in lumpsum with interest".
                           Rule-16(A) read with @ NO. FD/SO(SR-IV)1-43/Vol-II,dated 20.5.1991.



12)   NONREFUNDABLE ADVANCE ON ATTAINING THE AGE OF 50
      YEARS.


      No reasons are required to be given for the nonrefundable advance equal to 80%
      of the accumulation after the subscriber has attained the age of 50 years.(Rule-16-
      B) read with para-c(i) NO. FD/SO(SR-IV)1-43/Vol-II,Dated 20.5.1991.


Note-I An Advance drawn from G.P.Fund account on refundable basis, may be allowed
      to be converted into a Non-refundable advance if the subscriber has in the
      meanwhile attained the age of 45 years.
                                       para-c(iv) of No.FD/SO(SR-IV)1-43/Vol-II,dated 20.5.1991.




                                            11
Note-II: No life insurance policy shall be financed from the G.P.Fund account provided
       that the existing life insurance policies which are being financed from G.P.Fund
       account shall continue to be so financed till their finalization.
                                               para-(d) of No.FD/SO(SR-IV)1-43/Vol-II,dated 20.5.1991.



13)    Sanctioning Authority of G.P.Fund Advances:

       1.     Appointing authorities have been delegated with powers to grant
              temporary advances ordinary or special in accordance with the provision
              of the Rules vide item 35 of Appendix "A" to the West Pakistan (Civil
              Services) Delegation of powers Rule. 1962 (Notification No. PRC 3-2/62
              dated 12th March, 1962). In respect of ministerial establishment
              employed/posted in the respective Secretariat Department the powers to
              sanction advances will be exercised by the Administrative Secretaries to
              Government vide Government of West Pakistan, Notification No. E&A
              (S&GAD) 13(10)/69 dated 27th October, 1969.

       2.     The authorities of the Education Department as indicated below have been
              delegated powers vide Government of N.W.F. Province Education
              Department. Notification No. SO(E.P) 15-1/78-79, dated 4th September,
              1979: -


       a)     Director Education (Grade-20)                 Full power subject to G.P.Fund Rules.


       b)     Additional Directress (Grade-20)              Full powers subject to G.P. Fund Rules.
              in respect of Female Teachers.


       c)     District Education Officer           Full Powers upto Grade-16
              for School (Grade-18)                         subject G.P.Fund Rules.




                                                  12
14)    RECOVERY OF ADVANCES AND INTEREST THERE ON:
       1)     An advance shall be recovered from the subscriber in such number of
              equal monthly installments as the sanctioning authority may direct, but
              such number shall not be less than twelve unless the subscriber so elects,
              or in any case more than (thirty six). A subscriber may at his option, repay
              more than one installment in a month. Each installment shall be a number
              of whole rupees, the amount of the advance being raised or reduced, if
              necessary, to admit the fixation of such installments.
       2)     After the principal of the advance has been fully repaid, interest shall be
              paid thereon at the rate of one-fifth percent, of the principal for each
              month or broken portion of a month during the period between the drawal
              and complete repayment of the principal.


              Provided that Muslim subscribers whose deposits in the Fund carry no
       interest shall not be required to pay into the Fund any additional installments on
       account of interest on advances granted to them from the Fund.


FORMULA OF INTEREST ON G.P.FUND ADVANCE = Amount of Advance x No. of installments
                                                              500
                              Rule.1


15)    FINAL WITHDRAWAL OF ACCUMULATIONS IN THE FUND.
       i)     When a subscriber quits the service, the amount standing to his credit in
              the Fund shall become payable to him:


              Provided that a subscriber, who has been dismissed from the service and is
       subsequently reinstated in the service shall, if required to do so by Government,
       repay any amount paid to him from the Fund in pursuance of this rule, with
       interest thereon in the prescribed manner.(See S.No.7 (c) and 16). The amount so
       repaid shall be credited to his account in the Fund:




                                            13
      ii)     Provided further that a subscriber shall on application made by him be
              permitted to withdraw finally the amount standing to his credit in the
              funds six months before his retirement. Rule.30.


16)   When a subscriber:-
      a)      has proceeded on leave preparatory to retirement, or, if he is employed in
              a vacation department, on leave preparatory to retirement combined with
              vacation, or
      b)      while on leave, has been permitted to retire or been declared by a
              competent medical authority to be unfit for further service, or


      c)      desires payment within six months before his retirement; the amount
              standing to his credit in the Fund shall, upon application made by him in
              that behalf to the Account Officer, become payable to the subscriber.
              Rule.31.


17)   On the death of a subscriber before the amount standing to his credit has become
      payable, or where the amount has become payable before payment has been
      made;


      i) when the subscriber leaves a family:-


      a)      if prescribed nomination made by the subscriber in favour of a member or
              members of his family subsists, the amount standing to his credit in the
              Fund of the part thereof to which, the nomination relates shall become
              payable to his nominee or nominees in the proportion specified in the
              nomination;


      b)      if no such nomination in favour of a member or members of the family of
              the subscriber subsists or if such nomination relates only to a part of the
              amount standing to his credit in the Fund, the whole amount or the part



                                           14
                       thereof to which the nomination does not relate, as the case may be shall,
                       not withstanding any, nomination *purporting to be in favour of any
                       person or persons other than a member or members of his family become
                       payable to the members of his family in equal shares;


            Provided that no share shall be payable to:-
            1)         sons who have attained legal majority;
            2)         sons of a deceased son who have attained legal majority;
            3)         married daughters whose husbands are alive;
            4)         married daughters of a deceased son whose husband are alive;


                       if there is any member of the family other than those specified in clauses
            (1),(2),(3) and (4).


                       Provided further that the widow or widows and the child or children of a
            deceased son shall receive between them in equal parts only the share which that
            son would have received if he had survived the subscriber and had been exempted
            from the provisions of clause (1) of the first provision.


            ii)        when the subscriber leaves no family, if a prescribed nomination made by
                       him in favour of any person or persons subsists, the amount standing to
                       his credit in the Fund or the part thereof to which the nomination relates,
                       shall become payable to his nominee or nominees in the proportion
                       specified in the nomination. Rule.32


18)         1)- When the amount standing to the credit of a subscriber in the Fund becomes
            payable, it shall be the duty of the Account Officer to make payment, as provided
            in Section 4 of the Provident Funds Act 1925, as adopted.




*
    given intention/meaning



                                                   15
            2)         If the person to whom, under these rules, any amount or policy is to be
                       paid, assigned, re-assigned or delivered, is a *lunatic for whose estate a
                       manager has been appointed in this behalf under the Indian Lunacy Act,
                       1912, as adopted, the payment or re-assignment or delivery will be made
                       to such manager and not to the lunatic.


            2-A)       (a)    If the person to whom, under these rules any amount is to be paid
                       is a minor of whose property a guardian has been regularly appointed, the
                       payment of such amount shall be made to such guardian. If no such
                       guardian has been appointed, the Accounts Officer empowered under sub-
                       rule(1) to make the payment, may pay such amount to the mother of the
                       minor. Where the mother of the minor:-
                       i)     is not alive.
                       ii)    was, in the life-time of the subscriber, judicially separated from
                              him;
                       iii)   has remarried; or
                       iv)    is or has become disqualified or otherwise unsuitable, the Accounts
                              Officer may pay such amount to any suitable person nominated by
                              the Head of Office of the deceased subscriber in consultation with
                              the District authorities.

                       b)     Where the subscriber was a female, the Accounts Officer, in
                       applying the above provisions *mutates mutandis may make payment to
                       the father of the minor or to such other person as may be appointed a
                       guardian.

                       c)     Where the guardian appointed by the Accounts Officer is any
                       person other than the mother, father, paternal grand-father, uncle, brother
                       or sister of the minor, the guardian shall be required to execute an



*
    Mad
*
    with necessary changes



                                                     16
       indemnity bond, with two sureties, indemnifying Government against any
       claim which may subsequently be made.

3)     Any person who desires to claim payment under this rule shall send a
       written application in that behalf to the Account Officer. Payment of
       amounts withdrawn shall be made in Pakistan only. The persons to whom
       the amounts are payable shall make their own arrangements to receive
       payment in Pakistan. Rule.33.


STATUTORY PROVISION. 1) Before the expiry of the third month of every
financial year, the Accounts Officer or other officer required to maintain
provident fund accounts shall furnish to every civil servant subscribing to a
provident fund the account of which he is required to maintain a statement under
his hand showing the subscriptions to, including the interest accruing thereon, if
any, and withdrawals or advances from, his provident fund during the preceding
financial year.


2)     Where any subscription made by a civil servant to his provident fund has
not been shown or credited in the account by the Accounts Officer or other officer
required to maintain such account, such subscription shall be credited to the
account of the civil servant on the basis of such evidence as may be prescribed.
                                         Section-20 of the NWFP Civil Servant Act, 1973.




                                    17
                          CHART OF G.P. FUND ADVANCES
                                                                                                  G.P.FUND
               PURPOSE                   AMOUNT OF ADVANCE                  REVOVERY
                                                                                                    RULE
1.    (a) Prolonged                     3 months pay or half of the        Not less than 12           15
      illness/overseas passage for      G.P.Fund balance whichever         and not more
      Health or                         is less.                           than 36
      Education/funerals/Marriage                                          installments.
      /religious ceremony for self
      and dependant.


     (b) other essential and                       -do-
      unavoidable expenditure


2. Construction/purchase of             36 months pay or 80% of the        As above but               16
      house for himself & family        G.P.Fund balance whichever         also upto 7% of
      or additions & alternation in     is less                            pay.
      house.


                  NON REFUNDABLE ADVANCES (PART OF FINAL PAYMENT
                  PURPOSE                             AMOUNT OF ADVANCE              G.P.FUND RULES
a.    At the age of 45 years but before
      attaining the age of 50 years
      i)   Construction of house.                    80 % of G.P.Fund balance                 16 -A (a)
      ii) Purchase of house.                                    -   do -                      16 -A (b)
      iii) Purchase of Agricultural land                        -   do -                      16 - A (c)
           from Government.
      iv) Prolonged illness/overseas                            -   do-                       16 - A (d)
           passage for Health/Hajj or
           education/Funeral or Ceremony.
b.    On attaining the age of 50 years                          -   do -                   16 - B read with
      without reasons.                                                                       No. FD/SO/
c.    Repayment of loan from Financial               Not Exceeding the balance              SR-IV/ 1-43
      Institutions.                                  payable.                                No. FD/SO/
                                                                                            SR-IV/ dated
                                                                                             20-5-1991




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