GENERAL PROVIDENT FUNDGENERAL PROVIDENT FUND

Issues to be discussed

1. Maintenance of GPF Accounts.2. Issues impacting quality of maintenance of GPF2. Issues impacting quality of maintenance of GPF

accounts3. Minus balance cases.4 Deficiencies in GPF Final Payment Cases4. Deficiencies in GPF Final Payment Cases5. Issues relating to maintenance of GPF a/cs of AIS

officers .6 M i t f GPF C lid t d B d h t f6. Maintenance of GPF Consolidated Broadsheet of

Class IV employees.7. Miscellaneous issues.

Maintenance of GPF Accounts :Maintenance of GPF Accounts :

AG office maintains GPF accounts of State Government

employees/AIS officers/Judges and their staff. Group ‘D’ GPF

accounts are maintained by the DDOs of State Govt.

AG office also authorizes GPF Final Payment

Issues relating to maintenance of GPF Accounts :g

Volume of Work:Approximately 77 000 GPF accounts are being maintainedApproximately 77,000 GPF accounts are being maintained.

Approximately 55,000-60,000 vouchers and challans are received ina month from various accounts rendering unitsa month from various accounts rendering units.

After compilation of these vouchers and challans posting toindividual subscribers accounts is done from GPFindividual subscribers accounts is done from GPFschedules/challans.

Accounts to be submitted to AG by 10th of the following month andy gMCA to State Govt. on 25th of following month to which month ofaccount relates. So only 10 working days time is obtained forcompilation of all vouchers and challans and also posting toindividual accountsindividual accounts.

Issues impacting quality of GPF accounts:ssues pact g qua ty o G accou ts

Missing Credits

Unposted items

Minus Balance

Missing Credits

• Total No. Missing credit items as on 31-12-2013= 27,913• Position of Missing Credits for last five years :-

Year Total no. of Missing Credits

No. of Missing Cr. Adjusted

Balance as on 31-12-2013Missing Credits Cr. Adjusted 31 12 2013

2008-2009 4555 2967 1588

2009 2010 5030 2173 28572009-2010 5030 2173 2857

2010-2011 8429 2781 5648

2011-2012 6463 1137 5326

2012-2013 6345 437 5908

Reasons for Missing Creditsg

Due to want of GPF schedules with paybills and challans.Wrong GPF Account No./name in the schedule/challans.No mention of GPF Account No. in the schedules/challans.Non-furnishing of salary month and payable month in theschedules/challans.Due to suspension/leave without pay etc.

Impacts due to missing credits:

Delayed adjustment of missing credits would create complicationDelayed adjustment of missing credits would create complication.GPF final payment authorization gets delayed.Inconvenience to subscribers.

Missing Debitsg

Missing Debits arises due to non-receipt of GPF Payment vouchers.

AG office takes extra efforts, if any Debit voucher is found , ymissing.

Unposted DebitsUnposted Debits

Unposted Debits arises due to wrong GPF account No., wrongp g , gname etc. There are no unposted debits. Efforts are taken as when any unposted debit arisesunposted debit arises.

Unposted Creditsp

Toal No of Unposted Credit items as on 31 12 2013 = 51Toal No. of Unposted Credit items as on 31-12-2013 = 51

Position of Unposted Credit items for last five years are as follows:-

Year Total no. of unpostedcredit

No. of unpostedcredit adjusted

Balance as on 31-12-2013

credit2008-2009 74 71 3

2009-2010 54 47 7

2010-2011 43 43 0

2011-2012 17 07 10

2012-2013 15 01 14

Reasons for unposted Creditsp

Due to wrong account no. in the GPF schedules/challans.

Due to wrong name in the GPF schedules/challans.

GPF monthly subscription received twice for the same subscriber inthe same month (either from same establishment or from differentestablishment)establishment).

Impacts:

Due to unposted credit missing credit arises in subscriber account.

Inconvenience to subscriberInconvenience to subscriber.

Initiatives taken for adjustment of missing credits and t d itunposted items:

Details of missing credits are shown in the Annual GPF Statements.Details of missing credits are also uploaded on the Website.

Regular correspondences/persuasions with concerned DDOs andRegular correspondences/persuasions with concerned DDOs andFinance Department.

CDs containing missing credits DDO-wise and subscriber wise fromg gthe year 2004-2005 to 2012-2013 sent to all the Controlling Officers.

Peripatetic parties are being sent to some of the offices for collectingdocuments for adjustment of missing credits/ unposted itemsdocuments for adjustment of missing credits/ unposted items.

Responses from the DDOs/Head of Officesp

Responses from the DDOs/Head of Offices is not satisfactory.

In some cases documents (copies of schedules/pay bills/challans) furnished by the DDOs do not relates to the concerned salarymonth of missing credit.

Example : If the missing month is shown in GPF statements/list of missingcredits is April 2012 the supporting document for adjustment of missingcredit should be furnished for the salary month of March 2012 i.e. theprevious month.

What DDOs should do about missing credits?g

As and when DDOs get information about missing credits ofsubscribers under their establishment, they should :

a) Send copies of GPF Schedules/Pay bills/challans relating to missingmonth (i.e. paid month) for adjustment to AG office.( p ) j

b) Inform AG office if the subscriber is on suspension, leave withoutpay etc.

c) For any clarification AG office may be contacted. Contact Nos. areavailable on the website and backside of Annual GPF Statementavailable on the website and backside of Annual GPF Statement.

Also, to reduce missing Credits, DDOs should focus on :

a) GPF schedules are in complete shape.b) GPF Account No. and name is correctly written in the schedules etc.

Deficiencies noticed in GPF Schedules and Challans

In some cases GPF contribution of a subscriber has been deductedIn some cases GPF contribution of a subscriber has been deductedeither from two establishments or sometimes from the sameestablishment twice in two separate bills for the same month. Thisimplies, the officials had drawn salary twice in a month which ishighly irregularhighly irregular.

In some cases GPF subscription have been deducted even in case ofexpired employees.p p y

There should be separate pay bills and GPF Schedules for Gr.C andG D l B t i GPF b i ti f G C &Gr. D employees. But in some cases GPF subscriptions for Gr. C &Gr. D subscribers have been clubbed in a same pay bill/ schedule.Such cases are seen mostly in Forest Department.

Contd…

GPF amount deducted from pay bill does not tally/match with the GPFSchedule amount.

Sometimes GPF schedules are not attached with the challans.

As per Rule 8 of GPF(CS) Rules,1960 the rate of GPF subscription6% f i ’should be not less than 6% of subscriber’s emoluments and not more

than subscriber’s total emoluments. But in some cases it has beenobserved that the subscribers are contributing more than his monthlytotal emoluments and less than 6% of his emoluments.total emoluments and less than 6% of his emoluments.

Minus Balance Cases

Minus Balance cases arises due to overdrawal of GPF amount throughgAdvances/Withdrawals/Part final withdrawals by the subscribers fromthe GPF account.

Responsibility of the DDOs/Heads of Offices to follow the provisions ofResponsibility of the DDOs/Heads of Offices to follow the provisions ofRule 12,15 and 16 of GPF (CS) Rules, 1960 strictly while sanctioningany advance/withdrawal from GPF so that the prescribed limit ofsanction may not exceed in any case.

The matter is of serious concern as it involves irregularities on the partof DDOS/Departments and is likely to cause loss to Governmentexchequer. As per G.O.I.’s decision (5) below Rule 11, DDOs should beresponsible for such type of irregularities.

All DDOs/Heads of offices should take immediate steps for recovery ofexcess drawal of GPF advance /withdrawals as stipulated in Sub-rule (7)excess drawal of GPF advance /withdrawals as stipulated in Sub-rule (7)of Rule 11 of GPF(CS) Rules, 1960.

Contd…

Sub-rule (7) of Rule 11 of GPF(CS) Rules, 1960 states that in case a( ) ( ) ,subscriber is found to have drawn from the fund an amount in excessof the amount standing to his credit on the date of the drawal, theoverdrawn amount, shall be repaid by him with interest thereon in onelump.

The rate of interest to be charged on overdrawn amount would beg2.5% over and above the normal rate on GPF balance.

The amount of minus balance should be deposited through ChallanThe amount of minus balance should be deposited through Challanunder major head ‘8009-GPF’ and the interest realized on theoverdrawn amount shall be credited to Govt. account under majorhead ‘0049-Interest receipt’ through a separate challanhead 0049 Interest receipt through a separate challan.

Position of Minus Balance cases as on 31 January 2014as on 31 January 2014

Sl.No. Department No. of Minus balanceSl.No. Department No. of Cases

Minus balance amount ( in ` )

1. Agriculture 01 19,0632. Animal Resource

Development02 85,117

3. Education (School) 25 6,48,5794. Fire Service Organization 01 919

5. General Administration 01 4,1586. Home (Police) 04 58,338

7. Health & Family Welfare 07 2,26,389

8 I d i & C 01 1 30 0698. Industries & Commerce 01 1,30,069

09 L b 01 48 008

Contd…09. Labour 01 48,00810. Power 04 84,57011. PWD (R&B) 03 1,01,78412. PWD (Water Resource) 01 33,01113. Revenue 01 74,73614 R l D l t 08 2 62 35214. Rural Development 08 2,62,35215 Social Welfare & Social Education 03 34,10616 Weights & Measures 01 13,750g17. Youth Affairs & Sports 01 58,621

TOTAL 68 18,83,570

Out of 68 no. of Minus Balance Cases, no. of live cases are 58 amounting Rs.16,86,557 and no. of final payment cases are 10 amounting Rs.1,97,013.

Impact/Implication of Minus balance casesp p

Minus balances at the time Final Payment are more serious issue since itcauses loss to Govt. exchequer.

In case, Final Payment cases are received after pension proposals areauthorized the amount of minus balance requires to be recovered fromDearness relief of the pensioner.p

Proceedings can be initiated against DDOs.

Penalty on the subscribers.

Initiatives taken by AG’s office regarding minus balance casescases

Letters issued to the DDOs/Heads of offices.

The matter has been taken up demi-officially with the Secretaries of concerned departments. p

The matter has also been pursued by the Treasury Inspection partiesThe matter has also been pursued by the Treasury Inspection parties.

Responses from the DDOs/Departmentsp p

The responses from DDOs/Heads of Offices regarding recovery of minusThe responses from DDOs/Heads of Offices regarding recovery of minusbalance cases is not prompt/satisfactory.

What is expected from DDOs?p

No part withdrawal/advances should be sanctioned after the date ofretirement/death or after sending the final payment proposal.

DDOs/Head of Offices should verify the balance at credit from the AnnualGPF Statement as well as current GPF status available from AG’s websitebefore sanctioning any advance/withdrawal in favour of any subscriberbefore sanctioning any advance/withdrawal in favour of any subscriber.

DDOs may educate the subscriber so that they can download their currentstatus of GPF from the AG’s website.

GPF Final Payment Cases

DDOs/Heads of offices should also ensure compulsory stoppage of GPFsubscription of the Govt Servant during the last three months of service onsubscription of the Govt. Servant during the last three months of service onsuperannuation.

Rule 34(3)(iii) of GPF(CS) Rules, 1960: The GPF Final payment cases are tob l d l h b f h d f i f hbe settled at least one month before the date of superannuation of thesubscriber.

For this the Head of Office/Department should arrange for forwarding theFor this, the Head of Office/Department should arrange for forwarding theGPF final payment application alongwith details ofsubscriptions/refund/advance/withdrawals etc. to AG office before threemonths of retirement of the incumbent.

Quantum of Final Payment cases received yearly:

Approximately 3500 number of Final Payment cases are received annuallyApproximately 3500 number of Final Payment cases are received annually.

.

Delay in receipt of Final payment cases:y p p y

It has been noticed that there is considerable delay in sending the finalpayment proposals from the Departments.

Delay in sending the final payment proposals ranges from 2 (two) monthsto 28(twenty eight) months from the date of retirement/date of death.

Heads of offices/departments should ensure that such inordinate delay insending the final Payment proposals should be avoided .

Impact of delay in receipt of FP casesImpact of delay in receipt of FP cases

Unnecessary harassment to the subscriber.

Loss to Govt. exchequer as it has to pay interest to the subscriber upto six q p y pmonths after retirement.

Loss of interest to the subscriber if the delay in receiving the case is moreLoss of interest to the subscriber, if the delay in receiving the case is more the than six months (maximum six months interest is allowed as per Sub-rule (4) of Rule 11 of GPF Rules)

GPF Final Payment Cases (Returned Cases)y ( )

Final Payment cases are being authorized within two months of receipt.

However 5-10% cases are returned to the department as the proposals areHowever, 5-10% cases are returned to the department as the proposals areincomplete/inaccurate.

Department takes on an average 3 4 months to correct the proposal and forDepartment takes on an average 3-4 months to correct the proposal and forsending back to AG office which further delays the authorization of PF.

Common Deficiencies noticed in the Final Payment ProposalsProposals

GPF Final Payment Application not received in prescribed formGPF Final Payment Application not received in prescribed form.

Columns in the application form are left unfilled like last fund deduction,date of retirement, name of treasury/sub-treasury where from the payment, y y p yis sought for, Advance/Withdrawals during last 12 months preceding thedate of retirement/death etc.

In Death cases the Death Certificate and Survival Certificate not furnishedIn Death cases, the Death Certificate and Survival Certificate not furnished.

Statement showing last 12 months GPF contribution with bill no. and Dateare not furnished.

Contd…

Application not duly stamped and signed by the Head ofOffice/DDO/Department.p

It has been observed that in some cases GPF Final Payment proposal wasforwarded after finalization of Pension proposal As a result in case offorwarded after finalization of Pension proposal. As a result, in case ofminus balance the amount could not be recovered from the gratuity.

Check lists for DDOs/Heads of Offices before sending Final Payment Proposalsy p

As per GPF Rules Final Payment application should be forwarded afterfulfilling the following conditions:-fulfilling the following conditions:

Application should be made in prescribed form.

Date of retirement/death/resignation should be clearly mentioned.

Death certificate and Survival/Succession certificate should be enclosed.

Last fund deduction details.

C tifi t f Ad / ithd l if l ith t t t h iCertificate of Advance/withdrawal if any, alongwith statement showingthe GPF deductions for last 12 months immediately preceding the date ofretirement/resignation/death.

Contd…

Application should be duly stamped and signed by the head of office/department.

All the relevant columns of the Application should be duly filled in.

Compulsory stoppage of GPF Subscription three months before theCompulsory stoppage of GPF Subscription three months before thedate of superannuation.

A certificate from the D.D.O. to the effect that nod / i hd l ill b i d h b ib d i hadvance/withdrawals will be sanctioned to the subscriber during the

last three months before thedate of superannuation should be enclosed with the FP proposal.

Name of Treasury/Sub-treasury from where the payment is sought forshould be mentioned clearly.

Initiatives taken by AG’s office regarding Final Payment CCases

Most of the FP cases are settled within 2(two) months.

Regular persuasions are made with the DDOs for the returned cases.

Feedbacks are sent in the returned cases within one month from the dateof receipt of the FP cases.

To facilitate the subscriber to know the present status of Final PaymentCases information are available on AG’s website.

F db k i i l il bl h b iFeedback provisions are also available on the website.

Peculiar cases

1. In one case ,GPF final withdrawal was drawn by the DDO and deposited andkept in CD accounts for six months (approx.) instead of depositing thep ( pp ) p gundisbursed amount in the Govt. account. As per provisions contained belowRule 283(2)of Central Treasury Rules, Head of office should not retain anyun-disbursed amount for period exceeding three months and should depositun-disbursed amount for period exceeding three months and should depositthe amount to Govt. account under proper major head. In this case, the GPFFinal Withdrawal was drawn by the DDO but he could not disbursed theamount. DDOs and Treasury Officers should follow the Central TreasuryRules and Financial rules strictly and deposit the un-disbursed amount to theGovt. Account before exceeding three months.

Contd…

2. In some cases withdrawal has been sanctioned by the DDO after thedeath of the subscriber in favour of his family/nominee. As per GPFRules withdrawal cannot be sanctioned after the death of the subscriberto his family/nominee. Head of office/DDO should instead forward theyfinal payment case to AG office after the death of the subscriber.

Issues pertaining to maintenance of GPF accounts of AIS ffi d Fi l t Cofficers and Final payment Cases.

Information regarding GPF are made available to the AIS officers onInformation regarding GPF are made available to the AIS officers onmonthly basis through website and SMS Alert System. They can monitortheir own account and send necessary feedbacks, if any to AG office forupdation /necessary correction.p y

To improve the maintenance of GPF accounts of AIS officers ondeputation :-deputation :The DDOs may issue LPC to AIS officer proceeding on deputation afterclearly mentioning the GPF account number and the name of officemaintaining the account (A G A&E Tripura) to avoid miscommunicationmaintaining the account (A.G. A&E, Tripura) to avoid miscommunicationregarding sending draft/cheques by PAOs of various ministries and DDOs.

Contd…

Updated list of AIS officers who are on deputation may be forwarded tothis office by the GA(P&T) department along with their present officeaddress and also informing this office whenever any AIS officer proceedson deputation.

A certificate from the DDO to the effect that no withdrawal/advance willbe sanctioned during the last three months of retirement should besubmitted in case advance FP proposals.

Maintenance of GPF Broadsheets of Class IV employees of State Govt.

As per extant rules/codal provisions AG has to maintain department wisep p pbroadsheet of GPF accounts of Class IV employees of State Government.

For this, DDOs should maintain GPF Broadsheets of Class - IV employees oftheir establishmenttheir establishment.

DDOs should furnish to the Head of the Departments monthly statement ofcredits and debits, annual statement of interest due on GPF deposits andmonthly statement of credits and debits as worked out in broadsheet in respectof Class-IV accounts.

All the heads of department should furnish to the AG Office:All the heads of department should furnish to the AG Office:

Quarterly and annual consolidated amount of Class-IV GPF credits and debits.Annual closing balance in the prescribed format for Class IV employeesg p p y

Why it is required?Why it is required?

This is required for reconciling monthly figures of credits and debits postedfrom the consolidated certificates of deduction attached to individual paybills and from the vouchers for temporary and final withdrawal to ensurecorrectness of accounts.

To avoid the risk of fraudulent drawals.

Reported Case:p

It has observed in some of the states like UP, DDOs/HOD are notmaintaining broadsheet of GPF (Group D) accounts. The non-maintenanceand proving of broadsheet of GPF Group D accounts by DDO have led tofraudulent GPF drawals. Since there were no account controls in treasuryand at DDO level, District Judge Ghaziabad could authorize GPF Gr Ddrawals far in excess of what was available GPF Group D balance withhihim.

This has been widely reported by newspaper in 2010-2011.

Irregularities noticed in time-barred GPF Final Payment A th iti f lid tiAuthorities for re-validation :-

It has been observed that in some cases of GPF Final Payment authorities( issued by AG office) the validity of which has been expired due to non-payment within 6 months, were not returned back to AG office forrevalidation in time.

It is the responsibility of the Treasury Officers and also of DDOs to returnp y yback the time barred GPF Final Payment authorities to AG office forrevalidation.

Example : 46 cases in Udaipur Treasury and 6 such cases in KamalpurSub-treasury have been found during treasury inspection.

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