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The Department of Pension and Pensioners’ Welfare (DoPPW) released new instructions on October 25, 2024, to address frequent inquiries about interest payments on delayed GPF disbursements after retirement.
The notice details the payment of interest on delayed GPF final payments for retiring government employees, highlighting the duties of the relevant authorities and the consequences of delays in disbursement.
The Centre has issued a clarification regarding the General Provident Fund (GPF) disbursement process for government employees upon retirement. The Department of Pension and Pensioners’ Welfare (DoPPW) released new instructions on October 25, 2024, to address frequent inquiries about interest payments on delayed GPF disbursements after retirement.
These instructions emphasise the need for timely handling at every stage, from preparing retirement lists to issuing the Pension Payment Order (PPO). The notice also details the payment of interest on delayed GPF final payments for retiring government employees, highlighting the duties of the relevant authorities and the consequences of delays in disbursement.
According to the memorandum, “Recently, a few references regarding interest on delayed payment of GPF to the retired government have been received to clarify whether interest is payable on GPF after retirement.”
Key Points from the Centre’s Clarification on GPF Disbursement to Retired Employees
1. Timely Payment Obligation: Rule 34 of the General Provident Fund (Central Service) Rules, 1960 mandates that the Accounts Officer ensures the GPF amount is paid promptly upon the subscriber’s retirement.
2. Unconditional Disbursement: The GPF balance is the retired government servant’s sole property, and its disbursement remains unaffected by any pending disciplinary proceedings.
3. Interest on Delayed Payments: Rule 11(4) states that if the GPF balance is unpaid at retirement, interest must be applied for the period beyond the retirement date.
4. Interest Payment Approval Process:
- The Pay and Accounts Office (PAO) can approve interest for delays up to six months post-retirement.
- Interest payments for delays beyond six months need approval from the Head of the Accounts Office, while delays exceeding one year require authorization from the Controller of Accounts/Financial Adviser.
Escalation of Delays: Cases involving interest payments will be escalated to the Secretary of the concerned Administrative Ministry or Department to prevent additional financial burdens from accruing due to delayed GPF payments.
5. Accountability: The Secretary will assign responsibility at each stage of the GPF payment process to prevent delays, avoid unnecessary interest payments, and ensure timely disbursement.
