AG GPF Information

Complete Information AG General Provident Fund(GPF)

The Principal Accountant General (A&E) maintains the individual GPF accounts of nearly 2.9 lakh employees of the AP State Government. as per the rules and procedures contained in the GPF (AP) Rules 1935 and AIS (PF) Rules 1955 respectively.

The Provident Fund Group in the Office is headed by an IA & AS Officer in the rank of Deputy Accountant General.

Constitution of the Fund

The GPF is constituted with effect from 1st April 1935. The Funds are maintained in Indian Rupees. Conditions for Eligibility

The following categories of staff of the Govt. of AP are eligible to join the Fund:

• All Government servants including those appointed on or before 31.08.2004 under Rule 10(a)(i) of the State and Subordinate Service Rules are eligible.
• All re-employed pensioners (other than those employed for admission to CPF) and those Government servants who have not completed one year service shall be eligible on option.

Provident Fund is maintained by PAG for the following categories of employees

• Class III , Class II and Class I including Reemployed.
• APPSC members , APAT, Lok Ayukta
• High Court Judges
• All India Service Officers.
• Panchayat Secretaries.

PAG does not maintain GPF for the following categories of employees

• Class IV employees of State.
• Employees of Local Bodies, Municipalities, Panchayati Raj., Zilla Parishads.
• Corporations, Societies . Institutions (Aided or Grant in Aid )
• New Contributory Pension Scheme of any category of employee of State who are appointed on or after 1.09.2004.
Nominations to GPF:

A subscriber has to file a nomination in the prescribed form at the time of joining the Fund. If the subscriber has a family at the time of filing the nomination, the nomination cannot be in favour of any person(s) other than the member(s) of his family. The nomination made by a subscriber who is not married shall become invalid on his getting married. If a subscriber nominates more than one person, he has to specify in the nomination the amount of share payable to each of the nominees in such a manner as to cover the whole of the amount that may stand to his credit in the Fund at any time. The responsibility of scrutiny, acceptance and safe custody of the nominations filed vests with the Prl. Accountant General. A subscriber can cancel a nomination by sending a notice in writing to the Head of Office/Prl. Accountant General along with a fresh nomination.

Every Nomination made, and every notice of cancellation given, 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.

Admission to the GPF:

The Head of Office has to send a statement showing particulars of Government servants in the prescribed Form vide G.O.Ms.No.312 Fin, dated 28-10-1980 to the Principal Accountant General (A&E) for admission to the Fund. The GPF account number is allotted to each subscriber by the Principal Accountant General with a ‘Suffix’ indicating the department of the subscriber.

The Drawing and Disbursing Officers in the State Government prepare the staff pay bills along with GPF recovery schedules in respect of the subscribers to the Fund under their payment control and submit the same to the Treasury Officers for payment. After making payment the Treasury Officers forward the recovery schedules along with the Schedule of Payment to the Prl. Accountant General. From the GPF schedules and GPF payment vouchers received in the monthly accounts rendered by the Treasury Officers, the Prl. Accountant General posts the remittances/withdrawals into the accounts of the subscribers concerned.

The account maintained in respect of a subscriber shows the particulars of Opening Balance, subscriptions, refunds, amounts credited to the Fund like dearness allowance, pay revision arrears etc., withdrawals made, interest allowed and closing balance.

Rate of Subscription

The amount of subscription is fixed by the subscriber himself. However, it cannot be less than 6% of the basic pay and not more than the basic pay. The minimum subscription is determined on the basic pay drawn on 31st March of the preceding financial year. The rate of subscription can be reduced once, enhanced twice, reduced and enhanced as aforesaid during the course of a financial year.

Conditions for Subscription

The subscriber shall subscribe monthly to the Fund, except during:
1. Period of suspension.
2. Last four months of service before retirement.

A subscriber on reinstatement after a period of suspension is allowed to pay in lump or in installments any sum not exceeding the maximum amount of arrear subscriptions permissible for that period. A subscriber may at his option choose not to subscribe during leave without allowances or leave on half-pay.

Arrears due to the subscriber after retirement should be paid to the subscriber in cash and should not be credited to GPF.

Interest on the Fund

Interest at such rate as prescribed from time to time by Government of AP is credited to the subscribers’ account on the last day of every financial year. The rate of interest for the year 2010-11 is 8 per cent.

Penal Interest on Overdrawals

The overdrawn amount shall be repaid along with a penal interest at the rate of 2.5% over and above the normal rate of interest .The amount shall be paid in one lump or in monthly installments.