General Provident Fund: Centre issues clarification on payment of GPF to retired employees

General Provident Fund: The Centre has released a clarification regarding the disbursement of the General Provident Fund (GPF) to government employees upon retirement. The Department of Pension and Pensioners’ Welfare (DoPPW) provided this clarification in response to queries regarding the payment of interest on overdue GPF payments post-retirement.

The Department of Pension & Pensioners' Welfare (DoPPW) has highlighted in its memorandum the importance of ensuring the prompt disbursement of the GPF final amount to retired government employees. This is in accordance with the guidelines outlined in their previous office memorandum issued in January 2017, which had provided clarifications to different ministries and departments.

“Recently few references regarding interest on delayed payment of GPF to the retired Government have been received for clarification whether interest is payable on GPF after retirement,” the memorandum said.

The General Provident Fund (GPF) is a compulsory financial savings initiative established by the government to support its employees and their families. This program serves as a financial safety net during their active service and ensures assistance upon retirement. Its core objective is to ensure a steady income post-retirement for government personnel.

According to Rule 34 of the General Provident Fund (Central Service) Rules, 1960, the Accounts Officer is responsible for ensuring the payment of the GPF amount when it becomes due. This underscores the obligation of the authorities to process these payments efficiently.

Also read: EPFO Update: Diwali cheer for pensioners! EPS pension to be released early this month – Check date

“… Rule 34 of General Provident Fund (Central Service) Rules, 1960 clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment,” it said.

The memorandum emphasized that funds held in a General Provident Fund (GPF) account are considered the personal property of the government employee. Hence, any ongoing disciplinary proceedings or fines imposed will not impact the release of GPF funds. Furthermore, according to Rule 11(4) of the GPF Rules, if the GPF balance remains unpaid upon retirement, interest will be applicable on the outstanding balance post the retirement date.