PROCEDURE RULES

13.34.  All sums paid into the Fund under these rules shall be credited in the books of Government to an account named "The General Provident Fund"  Sums of which payment has not been taken within six months after they became payable under these rules, shall be transferred to "Deposits"  at the end of the year and treated under the ordinary rules relating to deposits.

13.35.  When paying a subscription in India, either by deduction from emoluments or in cash, a subscriber shall quote the number of his account in the Fund which shall be communicated to him by the Accounts Officer.  Any change in the number shall similarly be communicated to the subscriber by the Accounts Officer.

13.36.  (1)        As soon as possible after the close of each year, the Accounts Officer shall send to each subscriber a statement of his account in the Fund showing the opening balance as on the Ist April of the year, the total amount credited or debited during the year, the total amount of interest credited as on the 31st March of the year and the closing balance on that date.  The Accounts Officer shall attach to the statement of account an enquiry whether the subscriber --

(a)                desires to make any alteration in any nomination made under Rule 13.7 or under the corresponding rule heretofore in force ;

(b)               has acquired a family in cases where the subscriber has made no nomination in favour of a member of his family under the proviso to clause (I) of Rule 13.7.

            (2)        Subscribers should satisfy themselves as to the correctness of the annual statement and errors should be brought to the notice of the Accounts Officer within three months from the date of receipt of the statement.

            (3)        The Accounts Officer shall, if required by a subscriber, once but not more than once, in a year inform the subscriber of the total amount standing to his credit in the Fund at the end of the last month for which his account has been written up.

ANNEXURE A

(See Note 1 under Rule 13.14).

General Principles which should determine the grant of an advance from the General Provident Fund

1.                  The fund is designed solely for the protection of a subscriber's family against his sudden death, or, if he survives until retirement, to provide both him and them with additional resources in his old age.  Any thing which interferes with a subscriber's normal accumulations detracts from these purposes and tends to defeat the true object of the Fund.  Rule 13.14, merely permits a temporary and wholly exceptional departure from the real purposes of the scheme, and unless it is strictly interpreted, there is danger that subscribers will come to regard the Fund as an ordinary banking account, the existence of which absolves them from the necessity of providing for the normal incidents of life with the prudence which a private individual would exercise.  The inevitable result, if this tendency is countenanced, will be to discourage thrift, and to leave the subscriber with a depleted account at the time when it ought to be most helpful to him or his family.  Sanctioning authorities ought, therefore, to have no hesitation in resisting any attempt to use the Fund as a cheap loan account and  in enforcing the altogether exceptional character of Rule 13.14, as a provision to meet urgent needs which would not ordinarily have been anticipated.  Every prudent married man, for example, should be prepared to meet certain demands upon his resources on account of doctor's bills, and it is only when the burden is exceptionally prolonged, or the necessity usually grave and sudden, that he ought to think of making use of the Provident Fund for this object.

2.                  For the same reasons, a careful scrutiny should be applied to requests for withdrawals on account of marriage or funeral expenses.  Even where ceremonial expenditure is by religious custom obligatory, its extent should nevertheless be limited by the resources of the family, and no subscriber should be enabled to enhance such expenditure on the strength of deposits in the Fund.  An advance from the Fund can legitimately be made for obligatory ceremonial expenditure where no other resources exist but not in order to raise such expenditure to a more pretentious scale.

3.                  The intention of these instructions is not to limit the powers of the authorities competent to sanction withdrawals from the Fund in cases of absolute necessity, but the observance of the principles enunciated above is in the real interest of the body of subscribers to the Fund.

4.                  With reference to the provisions of the Provident Fund Act, 1925 there is no real difference regarding the validity of temporary advances between :-

(a)                a non-repayable advance ; and

(b)               an outright repayment of an amount equivalent to the advance.

            The grant of a non-repayment advance amounts to an outright repayment of a part of the "compulsory deposit".  Under section 2(a) of the Provident Fund Act, "Compulsory Deposit" is one, the whole of which is repayable on the happening of some specified contingency under the rules of the Provident Fund.  A partial repayment of a deposit in the Provident Fund thus deprives the deposits of the character of "Compulsory Deposits" as defined in section 2 of the Provident Fund Act, and, therefore, the immunity provided under section 3(1) ibid will be lost.  In other words, the Provident Funds in question will cease to be a provident fund subject to the provisions of the Provident Fund Act.

            All sanctioning authorities, therefore, should, while sanctioning temporary advances from General Provident Fund take into consideration the date of retirement of subscriber and fix the number of instalments in such a manner that it is possible to recover the entire amount of the advance, with interest accruing thereon before his actual retirement.


ANNEXURE B

[See Note 2 below Rule 13.14, Rule 13.15 (5) and Rule 13.20 (4)].

List of authorities competent to sanction temporary advances under the Punjab General Provident Fund Rules.

SN

Power

To whom delegated

Extent

1

2

3

4

1.

To grant temporary advance to the Government employees from their General Provident Fund.

All Departments of Government.

Full powers subject to the conditions laid down in rule 13.14 and provided further that the amount of the advance does not exceed 2/3rd the amount of the credit of the subscriber in the Fund

2.

(i) To sanction temporary advances to gazetted Government employees serving under them from their General Provident Fund Accounts.

 

Heads of Departments.

 

Subject to the conditions laid down in Rule 13.14 and provided further --

(a)          that the amount of the advance does not exceed 3 months' pay, and

(b)         that a second advance is not granted until the lapse of 12 months from the date of repayment of all previous advances.

 

(ii) To sanction the grant to Non-Gazetted Government employees serving under them of temporary advances from their General Provident Fund.

(a)              *Heads of Departments.

 

(b)              *Heads of  Departments.

Full powers subject to the conditions laid down in Rule 13.14 and in Annexure D to this Chapter.

Full powers Subject to the conditions laid down in Rule 13.14 and in Annexure D to this chapter in the case the employees who are members of a class III or a Class IV Service or who hold a Class III or a Class IV Post

       

*        Commissioners of Divisions, District and Sessions Judges, Superintending Engineers in the Public Works Department, Conservator of Forests, Controller of Printing and Stationery, Deputy Inspector General of Police, Circle Education Officers, Principals of Government Arts and Professional Colleges, Sub-Divisional Officers in the Sub-Divisions of the Civil Departments and General Assistants at Headquarters of the District exercise the powers of Heads of Departments for this purpose.

Note 1. --        Chief Commissioner, Delhi exercises the powers of Heads of Department, for this purpose  in respect of Gazetted and Non-Gazetted Government employees of the Government of the Punjab serving under the Delhi Administration.

Note 2. --        The Administrative Departments and Heads of Departments may redelegate the powers delegated to them in the above table, on their own responsibility and subject to such restriction as they may like to impose, to any officer under them at their headquarter offices.  They may also delegate their powers on the same lines to any subordinate authority in respect of grant of temporary advances from General Provident Fund Accounts.  Copies of such orders should invariably be endorsed to Finance Department and Accountant-General, Punjab.

ANNEXURE  C

(See rule 13.30).

1.                  Any sum payable under Rule 13.30 to a member of the family of a subscriber vests in such member under sub-section (2) of section 3 of the Provident Fund Act, 1925.

2.                  When a nominee is a dependent of the subscriber as defined in clause (c) of section 2 of the Provident Fund Act, 1925, the amount vests in such nominee under sub-section (2) of section 3 of the Act.

3.                  When the subscriber leaves no family and no nomination made by him in accordance with the provisions of Rule 13.7 subsists, or if such nomination relates only to part of the amount standing to his credit in the Fund the relevant provisions of clause (b) and of sub-clause (ii) of clause (c) of sub-section (1) of section (4) of the Provident Funds Act, 1925, are applicable to the whole amount or the part thereof to which the nomination does not relate.

 

ANNEXURE  'D'

(See Note 1 under Rule 13.14)

            The expression "earlier advances" appearing in sub-clause (ii) of clause (c) of Rule 13.14 (1) should be taken as referring to the first advance that may be granted up to two-third of the amount at the credit of the subscriber in the Fund admissible under clause (c) ibid.  Thus under clause (c) if a subscribe who had already been granted an advance up to two-third of the amount admissible and who under clause (c) applies for a second advance for authority which sanctioned the first advance, is competent to sanction the 2nd advance if the earlier advance is fully repaid.  If the individual subscriber may apply for a third advance within the twelve months of the final repayment of the previous advances or while one or both of them are still current, in such a case it would be necessary for the sanctioning authority  to seek the sanction of the next higher administrative authority to the grant of the 3rd advance.


ANNEXURE E

[See Rules 13.29(D), 13.29(E), 13.29(F) and 13.29(G)]

List of authorities competent to sanction final withdrawals under the Punjab Provident Fund Rules

SN

Power

To whom delegated

Extent

1

2

3

4

1.

To grant non-refundable advances to  Government employees from their General Provident Fund Accounts.

All Departments of Government.

Full powers subject to the conditions laid down in rules 13.29 (D), 13.29(E), 13.29(F) and 13.29(G) and  provided further that the amount of the advance does not exceed 3/4th  the amount of the credit of the subscriber in the Fund.

2.

To sanction the final withdrawals under Rules 13.29(D), 13.29(E), 13.29(F) and 13.29(G) to Gazetted Government Employees serving under them from their General Provident Fund.

Heads of Departments.

 

Full powers subject to the conditions laid down in the rules and provided further that the amount of advance does not exceed six months' pay or half the amount at the credit of subscriber in the Fund, whichever is less.

3.

To sanction final withdrawals under Rules 13.29(D), 13.29(E), 13.29(F) to Non-Gazetted Government Employees working under them from their General Provident Fund Accounts.

(i) *Heads of Departments.

(ii)                     Heads of Offices.

 

 

Full powers subject to the conditions laid down in rules.

Full powers subject to the conditions laid down in Rules 13.29(D), 13.29(E) and 13.29(F) in the case the employees who are members of a class III or a Class IV Service IV who hold a Class III or a Class IV Post.

4.

To sanction final withdrawal under Rule 13.29(G) to Non-Gazetted Government employees working under them from their General Provident Fund Accounts.

(i) *Heads of Departments.

 

 

 

(iii)                   Heads of Offices.

 

 

Full powers subject to the conditions laid down in Rule 13.29(G), and provided further that the amount of advance does not exceed three months' pay or half the amount at the credit of subscriber in the Fund, whichever is less.

Full powers subject to the conditions laid down in Rule 13.29(G), and provided further that the amount of advance does not exceed three months' pay or half the amount at the credit of subscriber in the Fund, whichever is less in the case the employees who are members of a class III or a Class IV Service IV who hold a Class III or a        Class IV post.

 


CHAPTER  - XIV

The Punjab Contributory Provident Fund Rules        

Short title and definitions

14.1          These rules, called "The Punjab Contributory Provident Fund Rules," came into force on the 1st August, 1933, except that in the case of the Superior Non-Gazetted staff of the Electricity Branch in the Public Works Department, they have effect from the 1st April, 1933, and supersede all the rules and orders relating to special Contributory Provident Fund which were in force before these rules came into force.

14.2          (1)        In these rules, unless there is any thing repugnant in the subject or context:-

(i)         Accounts Officer means the Accountant-General, Punjab.

(ii)                Emoluments means pay, leave salary, or subsistence grant, as defined in the Punjab Civil Services Rules, Volume I, and includes --

(a)                Sterling Overseas Pay converted at such rate of exchange as may be prescribed in this behalf;

(b)               any wages paid by Government to employees not reminerated by fixed monthly pay; and

(c)                any remuneration of the nature of pay received in respect of foreign service;

(iii)               Family means --

(a)                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 :

                                                Provided that if a subscriber proves that his wife has been judicially separated from him or has ceased under the customary law of the community to which he belongs to be entitled to maintenance she shall henceforth be deemed to be no longer a member of the subscriber's family in matters to which these rules relates unless the subscriber subsequently indicates by express notification in writing to the Accounts Officer that she shall continue to be so regarded ;

(b)               in the case of a woman subscriber, the husband and children of the subscriber, and the widow or widows and children of a deceased son of the subscriber :

                                                Provided that if a subscriber by notification in writing to the Accounts Officer expresses her desire to exclude her husband from her family, the husband shall henceforth be deemed to be no longer a member of the subscriber's family in matters to which these rules relate, unless the subscriber subsequently cancels formally in writing here notification excluding him.

Note 1. -          Children means legitimate children.

Note 2. -          An adopted child shall be considered to be a child when the Accounts Officer, or if any doubt arises in the mind of the Accounts Officer, the Legal Remembrancer to Government, Punjab, is satisfied that under the Personal Law of the subscriber adoption is legally recognised as conferring the status of a natural child, but in this case only.

Note 3. -          When a person has given his child in adoption to another person and if, under the personal law of the adopter, adoption is legally recognised as conferring the status of a natural child, such a child should, for the purpose of the rules be considered as excluded from the family of the natural father;

(iv)              Leave means any variety of leave recognised by the Punjab Civil Services Rules;

(v)                The fund mans the Punjab Contributory Provident Fund ; and

(vi)              Year means a financial year.

            (2)        Any other expression employed in these rules which is defined either in the Provident Fund Act, 1925 (XIV of 1925) (See Appendix IV), or in the Punjab Civil Services Rules is used in the sence therein defined.

 

CONSTITUTION AND MANAGEMENT OF THE FUND

14.3.        The fund shall be administered by the Government and shall be maintained in India in rupees.

14.4.        (1)        These rules apply to such non-pensionable Government employees (whether Gazetted or Non-Gazetted) under the control of the Punjab Government, who --

(a)                were in the service of the Punjab Government on the 15th August, 1951, and were entitled to the benefit of the Punjab Contributory Fund on that date but did not elect the option of coming on the New Pension Scheme;

(b)               ma be, specifically admitted by the competent authority to the Fund :

            Provided that these rules shall not apply to any such servant between whom and the Government an agreement subsists in respect of a Provident Fund, other than agreement providing for the application to him of these rules, and, in the case of an agreement so providing; shall apply subject to the terms of such agreement.

Note. --           A Government employee counting services for pension in any post shall not be allowed to be governed by these rules.

(2)        Every employee of a Government to whom these rules apply shall be a subscriber to the Fund.

            (3)        If a Government employee admitted to the benefit of the Fund was previously a subscriber to any other contributory or non-contributory Provident Fund of the State Government, the amount of his subscription and Government contributions in the other Contributory Provident Fund/ or the amount of his subscriptions in the non-contributory Provident Fund, as the case may be together with interest thereon, shall be transferred to his credit in the Fund.

            (4)        The amount standing at the credit of an employee of a local body in the Provident Fund established and maintained by the local body concerned shall, on the provincialisation of his services, be transferred to his credit in the Punjab Contributory Provident Fund in the event of his being admitted to the benefit of the Fund.  The balances so carried forward shall carry interest as for new subscribers.

Note. --           Excepting those military pensioners who are in receipt of military pension up to Rs.50 per month only, no pensioner, civil or military, continued in service or re-employed after the date from which his pension takes effect, shall be admitted to the Fund, without the approval of the competent authority.

(1)               If a Government employee admitted to the benefit of the Fund was previously a subscriber to any other Government Contributory Provident Fund or Non-Contributory Provident Fund, the amount of his subscriptions and the Government contribution in the Contributory Fund/ or the amount of his subscriptions in the Non-Contributory Provident Fund, as the case may be, together with interest thereon, shall be transferred to his credit in the Fund, with the consent of the other Government.

Note 1. -          The provisions of sub-rules (3) and (5) shall not apply to a person who has retired and is subsequently re-employed, with or without a break in service, or to a person who was holding the former appointment on contract.

Note 2. --        The provisions of this rule shall, however, apply to apply to persons who are appointed without break, whether temporarily or permanently to a post carrying the benefits of these rules after resignation/ retrenchment from service under another Department of State Government or under any other Government.

 

NOMINATIONS

14.5.        (1)        A subscriber shall, at the time of joining the Fund, send to the Accounts Officer through the Head of Office 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 :

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

            Provident further that the nomination made by the subscriber in respect of any other Provident Fund to which he was subscribing before joining the Fund shall, if the amount to his credit in such other Fund has been transferred to his credit in this Fund, be deemed to be a nomination duly made under this rule until he makes a nomination in accordance with this rule.

Note. --           The application for admission to the Fund should not be forwarded to the Accountant-General until it is accompanied by nomination forms completed by the subscriber.

            (2)        If a subscriber nominates more than one person under clause (1), 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.

            (3)        Every nomination shall be in such one of the Forms P.F.-I, I-A, I-B or I-C as is appropriate in the circumstances.

            (4)        A subscriber may at any time cancel a nomination by sending a notice in writing to the Accounts Officer :

            Provided that the subscriber shall along with such notice send a fresh nomination made in accordance with the provisions of clauses (1) to (3).

Note. --           The proviso to this clause is directory and not mandatory.  The additional provision that a fresh nomination should be sent along with a notice does not affect the validity or otherwise of the notice.  The proviso, thus, does not constitute a condition for the validity of the notice.  Once a notice is given complying with the above requirements, it operates as a valid and effective  notice:     Provided it is given in clear unambiguous terms.  In view of this it shall not be in order to make the payment of the deposits in the Contributory Provident Funds on the basis of the nomination, which is expressly cancelled by the subscriber by a notice given in clear and unambiguous terms but which is not replaced by another valid nomination.  After receiving such a notice of cancellation of a nomination, the nomination should be cancelled forthwith and returned to the subscriber.  If the subscriber fails to furnish alongwith the notice of cancellation or separately in due course, a fresh nomination which is in accordance with the rules and the Provident Fund becomes payable as a result of the death of the subscriber, the payment should be made in accordance with the rules of the Fund as if no valid nomination subsists.

            (5)        A subscriber may provide in a nomination :-

(a)                in respect of any specified - nominee, that in the event of his predeceasing the subscriber, the right conferred upon that nominee shall pass to such other person or persons as may be specified in the nomination, provided that such other person or persons shall, if the subscriber has other members of his family, be such other member or members;

(b)               that the nomination shall become invalid in the event of happening of a contingency specified therein :  Provided that if at the time of making the nomination the subscriber has no family he shall provide in the nomination that it shall become invalid in the event of his subsequently acquiring a family :

Provided further that if at the time of making the nomination the subscriber has only one member of the family, he shall provide in the nomination that the right conferred upon the alternate nominee under clause (a) shall become invalid in the event of his subsequently acquiring other member or members in his family.

(2)               Immediately on the death of a nominee in respect of whom no special provision has been made in the nomination under clause (a) of sub-rule (5), or on the occurrence of any event by reason of which the nomination becomes invalid in pursuance of clause (b) of sub-rule (5) or the provision, thereto, the subscriber shall send to the Accounts Officer a notice in writing canceling the nomination together with a fresh nomination made in accordance with the provision of this rule.

(3)               Every nomination made, by a subscriber shall, to the extent that it is valid, take effect on the date on which it is received by the Accounts Officer.

(4)               Nothing in clauses (1) to (3), shall be deemed to invalidate, or to require the replacement by a nomination there under of a nomination duly made before, and subsisting on the 26th November, 1941.

            Provided that in respect of every such nomination the subscriber shall as soon as may be after the said date send to the Accounts Officer a contingent notice of cancellation in such one of the Forms P.F.2 or 2-A as is appropriate in the circumstances.

 

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