The Centre has clarified on the issue of interest payment on delayed General Provident Fund (GPF) disbursement to government employees upon retirement.

The Department of Pension and Pensioners’ Welfare (DoPPW) issued new instructions on October 25, 2024, and said it was giving due importance to timely processing of GPF claims at every stage, including preparing retirement lists and issuing the Pension Payment Orders (PPOs).

It has also clarified on the issue of interest payment on delayed GPF final payments, in the notice.

“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,” DoPPW said in the circular.

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Key Clarifications Issued

Here are the key clarifications DoPPW issued in its circular.

1) Sum Paid: According to Rule 34 of the General Provident Fund (Central Service) Rules, 1960, the accounts officer is responsible for ensuring that the GPF sum is paid on time when the subscriber retires.

2) Payout Amount: The GPF amount is the individual government servant’s own asset, and ongoing disciplinary procedures have no bearing on its payout.

3) Interest On Delayed Payments: Under Rule 11(4), if the GPF amount is not paid on retirement, interest must be paid for the period after retirement. Big Update On Voluntary Retirement For Central Government Employees Under NPS; Check Details

4) Interest Payment Procedures: The circular also listed out the interest payment procedure.

a) The Pay and Accounts Office (PAO) can sanction interest payments up to six months after retirement.

b) Interest payments over six months must be approved by the head of the accounts office, with further permission required from the controller of accounts/financial adviser for payments beyond one year.

c) Latency Escalations: To address financial constraints from delayed GPF payments, cases requiring interest payments will be escalated to the secretary of the appropriate administrative ministry or department.

d) Responsibility Assignment: The secretary will assign accountability at all levels to alleviate GPF payment delays to ensure timely processing and reduce excessive interest chargesSwiggy IPO Launch On November 6: Check All Details