7th Pay Commission latest news: Big GPF relief for central government employees; centre directs this on debit, credit and interest accumulation policy

ZeeBiz WebTeam | Aug 04, 2020, 02:34 PM IST

7th Pay Commission latest news: Those central government employees who have General Provident Fund (GPF) subscription, the Department of Pension and Pensioners' Welfare has provided big relief in regard to debit, credit and interest accumulation. The central government is of the opinion that due to the GPF account being maintained by establishments different from their salary bills and deducting their GPF contribution, coordination mechanism between the two establishments is crucial.

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Avoiding Lapses

Avoiding Lapses

In this regard, the Department of Pension and Pensioners' Welfare issued an order dated 17th July 2020 that aims to avoid any lapses in updated maintenance of the GPF accounts. Photo: PTI

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Greater Transparency

Greater Transparency

The Department of Pension and Pensioners' Welfare order said, "In order to avoid such grievances and for the sake of greater transparency, it has henceforth been decided that — Photo: Pixabay

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Intimate Particulars of Missing Credits

Intimate Particulars of Missing Credits

1) It shall be mandatory for all offices maintaining GPF accounts to intimate the particulars of missing credits, once every financial year, to the authority responsible for deducting the GPF subscription, under intimation to the concerned subscriber. Photo: Pixabay

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Complete Statement

Complete Statement

2) A complete statement of all credits, debits and interest since inception of the GPF account, shall be provided to every subscriber, mandatorily two years before the retirement of subscriber and thereafter one year before the retirement. Any subscriber can make a representation on such a statement provided provided to him (or her) and the office maintaining GPF account shall resolve the grievance within 60 days from the date of receipt of such a grievance. Photo: Pixabay

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Who Was Most Affected

Who Was Most Affected

The Department of Pension and Pensioners' Welfare said that it has been receiving grievances from the retired central government employees and other government servants for inaccurate and delayed GPF settlement, along with interest, on their retirement, due to  frequent instances of missing credits in their GPF accounts. The missing credits in GP were reported mostly by subscribers, who during their services moved from one establishment to another or were assigned foreign deputation. Such cases were also reported by offices of All India Service, who proceeded on deputation outside their cadres. Photo: Reuters