Tamil Nadu Government Employees – General Provident Fund (TN) Rules 1991

Tamil Nadu Government Employees – General Provident Fund Rules

The GPF subscription of an employee of the Government of Tamil Nadu is governed by the GPF (TN) Rules, 1991.

1. What constitutes ‘Family’ for the purpose of GPF Rules?

Spouse, Parents, children, minor brothers, unmarried sisters, deceased son’s widow and children and if no Parent of the subscriber is alive, a paternal grandparent. A female subscriber can exclude her husband from the list of Family members. (Rule 2 (c)).

2. Is an adopted child a member of the family?

Yes, if under the personal law of the subscriber adoption is legally recognised. But, a child of one person given in adoption to another is not a member of the former’s family. (Notes II & III under Rule 2 (c)).

3. What is the minimum amount of subscription?

Minimum rates as prescribed by the Government in GO MS. 579 Fin. (All) dated 07/10/1998.

4. What are the emoluments for determining the minimum rate of subscription?

Emoluments drawn on the 31st March of the previous year provided that :

If, the subscriber was on leave on that day and opted not to subscribe during
leave or was under suspension, the emoluments due on rejoining duty.

If, the subscriber on deputation out of India on that day or continued to be on leave but opted to subscribe during such leave, the emoluments he would have drawn had he not proceeded on deputation or leave.

If, the subscriber was not in Government Service on 31st March of the previous year, emoluments on the date of joining the Fund. (Rule 10(2))

5. Can the subscriber alter his rate of subscription?

Yes. The rate can be reduced (not below the prescribed minimum) once a year in March and increased twice a year. (Rule 10(4))

6. How is subscription to GPF recovered?

From the Pay and Allowances drawn from Treasury.

If Pay and Allowances are drawn from any other source, the subscriber himself will forward his dues to the A.G.

If on deputation to a body corporate or organisation under Societies Registration Act, the employer shall recover and forward it by Demand Draft/ Cheque drawn in favour of the A.G. (Rule 12 (1) & (2))

7. How should the arrears of subscription be recovered?

The arrears should either be paid by the subscriber or recovered from the emoluments in installments as directed by the authority competent to sanction an advance from the Fund. (Rule 12 (3))

8. What are the occasions for non -recovery of subscription?

During suspension

During leave on half pay or loss of pay

After receiving the Final Withdrawal amount under Rule 29, i.e. leave preparatory to retirement, employment in vacation department etc.

During period treated as dies-non

Last four months of service before superannuation

Note : No proportionate recovery need be made if the subscriber dies during a month (Rule9(4))

9. Why should the subscriber make a nomination?

Nomination is needed to confer on one or more persons the right to receive the money at the credit of the subscriber in the event of his death before the amount becomes payable to him or not paid to him after it becoming payable. The nomination should be treated as a confidential document. (Rule 7 (1))

10. What is the format of the nomination?

The nomination should be made in triplicate in one of the applicable forms prescribed in the first schedule to the Rules. (Rule 7 (3))

11. Can a subscriber nominate more than one person?

Yes, but he should specify the share payable to each nominee so as to cover the entire amount standing to his credit. (Rule 7 (2))

12. Should a subscriber nominate only members of his family?

Yes, if he has a family – Proviso to Rule 7 (1)

13. Should the subscriber notify the change in his marital status?

Any change in marital status should be notified immediately by self-drawing subscribers to the A.G. through the Department and non-self drawing officers to the Head of Office and fresh nomination should be filed, if necessary. (Rule 7 (7))

14. How often should the nominations be reviewed?

Every subscriber shall review his nomination once in Five years and confirm or intimate any change, if necessary, in the form prescribed in Appendix L to the Rules and furnish fresh nomination, if necessary. (Rule 7(8))

Each DDO should send a certificate once in Five Years to the Head of the Department to the effect that all subscribers in his office have been directed to review their nominations and that fresh nominations obtained wherever necessary and forwarded to A.G in respect of self-drawing Officers. The certificate in respect of subscribers working in the Office of Heads of Departments should be sent to the concerned Department of Government.
Ruling (i) under Rule 7 (8)

15. Is the nomination made by Christian and Mohammedan subscribers in favour of an adopted child acceptable?

No, because the adoption is not recognised under Christian/Mohammedan law for their respective religions. (Govt. Lr No. 80769/Codes/63-4 Dt. 09/12/63 )

16. Can an unmarried subscriber nominate an adopted child?

Yes, if Hindu Adoption and Maintenance Act, 1956 is applicable to the subscriber. (Govt. Memo No. 6774/Pen/77-5 Fin (Pen) Dt. 18/05/1977)

17. Can a subscriber having no family nominate an institution?

Yes. (Govt. Memo No.33/53/Pen 2 Dt. 28/04/1959)

18. What are the purposes for which advance from GPF can be sanctioned ?

Advances can be sanctioned to meet the expenditure in connection with

Medical treatment of the subscriber or his dependent.

Higher education of subscriber or dependant in specified academic*, medical, engineering, technical or scientific process.

Marriages, funerals or other ceremonies.

Legal action faced by the subscriber or dependants except where the subscriber has initiated legal proceedings against Government challenging conditions of service, penalty etc.

Legal fee for defending himself against official enquiry for alleged official misconduct.

Purchase of consumer durable like TV, VCR, Computer, etc. (Rule 14)

(*Applicable only for non-gazetted officers)

19. Who can sanction a temporary advance?

An authority specified in the Fifth schedule of the Rules. There should be a sanction order in writing.

20. What are the monetary limits of temporary advance?

The advance should not exceed 50% of Fund balance. In special circumstances, advance up to 60% of balance may be sanctioned, considering the status of the subscriber and the purpose for which the advance is sanctioned. (Rule 14 (1) ( c ) (i) and (iii))

A second advance can be sanctioned only after six months from the drawal of the first and this fact should also be certified in the sanction order. (Rule 14 (1) ( c ) (ii))

When an advance is sanctioned when a previous one is outstanding, it should be consolidated and the subsequent installment for recovery be fixed with reference to the consolidated amount. (Rule 15 (1))

21. Can advance be granted to a subscriber who is under suspension?

Yes, if he agrees in writing that recovery can be effected from his subsistence allowance. Pay drawn by the subscriber immediately before suspension should be reckoned as Pay for determining the limit. (Rule 14 (1 A))

22. How is the advance recovered?

In equal monthly installments of not less than 12 (unless the subscriber wants a lesser number) and not more than 24. In special circumstances, even the amount of advance exceeds twice the pay, recovery may be effected in not more than 36 installments. (Rule 15 (1))

23. Is any interest levied on the advance?

No. (Rule 15 (1))

24. Can advance be sanctioned to subscribers retiring in less than a year?

Yes, but in such cases installment should be so fixed that the recovery of the entire amount is completed four months prior to the date of retirement. (Note below Rule 15 (1))

25. What are the circumstances under which recovery towards advance need not be made?

Recovery may not be made except with the subscriber’s consent if he is in receipt of subsistence grant on leave on half pay or loss of pay for 10 days or more in a month.

On specific request from the subscriber, when advance of pay granted to him is being recovered (Rule 15 (2))

26. What should be done if advance is wrongfully used?

The sanctioning authority may get the written explanation of the subscriber. If the explanation is not satisfactory, the subscriber should repay the amount in one lump sum immediately. If the amount is more than half the emoluments, recoveries should be effected from the salary till the entire amount is repaid. (Rule 15 (5))

27. When and how can a Part Final Withdrawal (PFW) be allowed?

PFW may be sanctioned by the authorities competent to sanction advance for special reasons, at any time after the subscriber completes 15 years of service or within 10 years before retirement, whichever is earlier. (No authorisation from the A.G is necessary for drawing the amount.) (Rule 15 A (1))

28. What are purposes for which PFW is allowed?

PFW is admissible to meet the expenditure in connection with :

Medical treatment of the subscriber or his dependent ;

Higher education in specified academic*, medical, engineering, technical or scientific courses of the subscriber or his dependent

Betrothal or marriage of children or any other dependent female relative;

Acquisition or construction of residential house (including cost of site), repayment of loan taken for the purpose and reconstruction or making additions or alteration to a house already owned or acquired;

Payment of an installment (other than monthly installment) to a Housing Board/Society towards cost of a house/flat subject to the limit specified in Rule 15 B and production of approved plan;

Acquisition of farm land and/or business premises before six months from the date of retirement;

Purchase of consumer durable such as TV, VCR, Computer etc.

Purchase of a motor car or repayment of loan taken for that purpose. (Rule 15 (A) (1)) *Applicable to non-gazetted officer

29. How many withdrawals are allowed for the same purpose?

Only one. Marriage, education or illness of different children will not be treated as same purpose. Betrothal and marriage of the same child/female dependent are treated as different purposes. PFW for higher education, subject to monetary limits specified, may be permitted every year for the same purpose. (Rule 15 (A) (1))

30. Can a subscriber draw both an advance and withdrawal for the same purpose?

No. (Rule 15 (A) (1))

31. Can withdrawal be sanctioned to the subscriber under suspension?

Yes, If he is otherwise eligible.

32. Can PFW be sanctioned during the last four months of service?

No, unless it is specifically authorised by the A.G (Proviso under Rule 15 (A) (2))

33. What is the maximum amount of PFW?

The amount should not ordinarily exceed one half of the balance or six months pay whichever is less. However, up to 60% of balance at credit, subject to a maximum of Rs. 1.25 lakhs or 75 times the monthly pay whichever is less, may be sanctioned, considering the purpose and the status of the subscriber. (Rule 15 (B) (1))

34. What are the special conditions for the grant of PFW for purchase or construction of house?

If a subscriber has availed house building advance from Government or from any Government source, amount of PFW and the amount of advance taken together should not exceed Rs. 2.5 lakhs or 75 times of pay whichever is less;

The subscriber should not sell, mortgage, gift or exchange the property without previous permission of Government, unless the house or site is only leased for short term not exceeding 3 years or mortgaged in favour of Housing Board, LIC or other corporate bodies owned/controlled by Government;

The subscriber should submit a declaration to the sanctioning authority before 31st of December every year to the effect that he continues to possess the property or if mortgaged or leased, produce the original mortgage or lease deed and other documents.

If the subscriber parts with the possession of the property without obtaining permission from Government he should repay the amount of PFW immediately. If not paid, the amount should be recovered from his emoluments either in lump sum or in installments, after giving him opportunity making a representation in this regard.

35. What are special conditions for the grant of PFW for purchase of car?

25 years of service or within 5 years before retirement, whichever is earlier;

Pay should be Rs. 10,000 – Rs. 15,200 and above;

The amount of withdrawal shall be limited to Rs. 1.00 lakh or one-third of the amount standing at the credit of the subscriber or the actual cost of the car, which ever is least.

Withdrawal is allowed only once for this purpose;

Withdrawal for extensive repairs or overhauling of car may be allowed, subject to the conditions prescribed in Rule 15-E (1). (Rule 15 (D))

36. Can the subscriber get PFW during the last year of service?

Yes. The authority competent to sanction PFW can sanction withdrawal up to 90 percent of the balance at credit of the subscriber when it is applied for within 12 months before retirement. This can be availed of only once and without assigning any reason for the withdrawal and without authorisation from the A.G. even if it is applied for during the last four months of service. (GO MS No.535 dated 19/07/1991 )

37. Can an advance be converted to withdrawal?

Yes. The balance of an advance drawn under Rule 14 for any of the purposes specified in Rule 15-A (1) may be converted into PFW if the conditions laid down in rules 15-A and 15-B are satisfied.

38. Are all the outstanding advances eligible for conversion?

If all the advances consolidated are convertible and the subscriber requests for such conversion, the entire outstanding balance can be converted into PFW

39. When will the GPF amount become finally payable?

Following are the occasions for the final payment of GPF :

Retirement on superannuation;

Death while in service (payable to nominees or legal heirs);

Dismissal, removal, compulsory retirement or invalidation from service. If appeal has been preferred, payment can be made only after the appeal is finally disposed of or withdrawn by the subscriber. Otherwise, after the expiry of the mandatory period up to which the subscriber can prefer appeal or if he gives in writing that he would not prefer any appeal. In the case of officials who are compulsorily retired under FR 56 (d), the amount becomes payable on the day of retirement even if he has preferred an appeal.

Resignation – payable after the issue of final orders accepting the resignation. Resignation to take up appointments under a body corporate, autonomous organisation etc. will be treated as absorption and the balance in the Fund will be transferred if he joins the new post without break and with proper permission of Government.

Voluntary retirement – after the issue of orders permitting voluntary retirement.

If a temporary official is terminated, he can either withdraw the amount or leave it in the Fund to be withdrawn while quitting service finally.

On permanent transfer to another Government or Corporate Body or Organisation controlled/owned by Government, the balance together with interest will be transferred to the new institution (if the institution and the subscriber agree for the transfer Otherwise, the amount together with interest may be paid to the subscriber.) (Rule 28 ,29 & G.O. 284)

40. How PF money is paid to a minor beneficiary of the deceased subscriber?

The amount may be paid to the guardian specified by the subscriber in a declaration. If no such declaration exists, payment should be made to the guardian appointed by a court except in the following cases :

Payment up to Rs.10,000/- may be made to the natural guardian without guardianship certificate on production of indemnity bond;

In cases governed by Hindu Law, entire amount due to a minor may be paid to the Hindu widow of the subscriber unless the interests of the mother are adverse to those of the minor children.

Payment may be made to the Hindu father of the minor unless the interests of the father are adverse to those of the children. Note 1 below Rule 30 (ii)

41. What is the procedure for making payment to a person other than natural Guardian?

The person to whom the head of office proposes to make payment should file a sworn affidavit claiming to be the de facto guardian, that he is in charge of the property of the minor, or if there is no property that the minor is in his custody and care.

He should execute an indemnity bond on plain paper with two sureties personally or by duly constituted Power of Attorneys.

The bond should be accepted by the DDO, on behalf of the Government under Article 299 (1) of the Constitution. Note 2 below Rule 30 (ii)

Minimum rates of subscription per month to GPF as prescribed in GO No.579 dated 07.10.1998 of Finance (All.) Department.