NPS DELIVERS AVERAGE RETURNS OF 9.33%, BEATS PFS

NEW DELHI: The three NPS managers handling the pension funds of Central and state government employees have delivered average returns of 9.33% in the past one year, outperforming the state-run government provident fund (GPF), employees provident fund (EPF) and the public provident fund (PPF). The three-year annualised returns are also quite decent at 8.47%, though not as spectacular as in the past one year.

FAQ on GPF (General Provident Fund)

General Provident Fund
Q. What is the procedure to increase or decrease General Public Fund (GPF) Subscription? 
Ans. GPF subscription can be increased or decreased by submitting request for the same.

Q. Can I get Temporary advance from G.P.Fund for children"s higher education? 
Ans. Yes Temporary advance and Final Withdrawal both can be availed for Children"s higher education on production of necessary documents.

GPF - FAQ ( Continued )

1.      What is the minimum contribution towards GPF subscription? Whether the amount can be altered by the DDOs?

Ø As per Rule 8(b), the subscription towards GPF should not be less than 6% of emoluments and not more than total emoluments. The DDOs are having no right to alter the subscription fixed by the Government servant. The subscription may be increased twice and reduced once at any time during the year. 

2.      What are all the reasons for which GPF advance can be availed?

GPF - FAQ

1.      How many times in a year advance from GPF can be availed?

Ø  Even though the orders specify that at least four months’ time gap is required in between two advances and six months time gap for withdrawals, the sanctioning authority may relax this rules. In many circles, the officials are drawing GPF advance as second salary in every month.

2.      What is the qualifying service required for an employee for apply withdrawal from GPF? Is there any further relaxation available?

Ø  As per Rule 15(i) (A) of the GPF Rules, one should have completed 15 years of service or be should have less than 10 years for his superannuation for making withdrawal from the GPF.

Enhancement of age of Retirement in Kerala

Enhancement of age of retirement of Government Employees and Teachers – Closure of General Provident Fund Accounts.

The Finance Department (Provident Fund) of Kerala Government has issued detailed instructions regarding the above matter on 30th May 2012 on its website.

The Kerala Government have withdrawn the unification of the date of retirement and enhanced the age of compulsory retirement of Government Employees, Teachers and Staff of Aided Educational Institutions to 56 years and made it statutory also.

GPF Interest Rate raised again

View the Gazette Notification Dated 22nd May 2012
Govt. has hiked GPF interest rate again for the F.Y. 2012-13. With effect from 1st April 2012, the rate will be 8.8%. It is applicable for General Provident Fund and 10 other similar provident funds managed by Govt. of India.
The interest rate on such funds was 8.6 per cent during December 2011-March 2012 period, while it was 8 per cent for April-November 2011. This move will benefit millions of Govt. employee.

Linking of GPF Interest Rates With EPFO

The rates of interest on General Provident Fund (GPF) is 8% for the period from 1.4.2011 to 30.11.2011 and 8.6% from 1.12.2011 to 31.3.2012, whereas the rate of interest on EPF for the financial year 2011-12 is 8.25%. Rate of interest on EPF is fixed on the recommendation of the Central Board of Trustees (CBT) by the Employees Provident Fund Organisation (EPFO), Ministry of Labour and Employment based on the income earned on the accumulated fund during the financial year. However, rate of interest on GPF is generally fixed after taking into consideration the average secondary market yields on government securities of similar maturity. 

General Provident Fund – FAQ

These are frequently asked questions on General Provident Fund applicable to employees joined in the government service prior to 1.1.2004. GPF is covered by General Provident Fund (CS) Rules, 1960 and Office memorandums issued by Government from time time.

GPF FAQ : [Click the question for Answer]

[DDET 1. What is a GPF Advance ?]

GPF Advance is an interest free loan from your savings in General Provident Fund Account for specified reasons. You need to repay the same into your account in equated monthly installments. No interest shall be charged on the amount so taken as advance. However, you will not be paid any interest on GPF amount taken as advance. Such advances are covered under terms as per sub Rule (1) of Rule 12 of GPF (CS) RULES, 1960. [/DDET]

EXTRACTS FROM THE GPF (CS) RULES, 1960

Rule – 12: Advances from the fund

(1) The appropriate sanctioning authority may sanction the payment to any subscriber of an advance consisting of a sum of whole rupees and not exceeding in amount three months’ pay or half the amount standing to his credit in the Fund, whichever is less, for one or more of the following purposes.

(a) to pay expenses in connection with the illness, confinement or a disability, including where necessary, the traveling expenses of the subscriber and members of his family or any person actually dependent on him;

General Provident Fund (GPF) rules

A brief description of General Provident Fund (GPF) rules and conditions of central government employees are given below.

1: Applicability:

The GPF rules are applicable to those central Government employees who have been appointed on or before 31-12-2003.

2: Eligibility:

Temporary Government Servants after the service of one year, re-employed pensioners and permanent Government servant shall subscribe to GPF compulsory. Temporary Government servants may subscribe to GPF even before competition of one year’s service.