Rate of Subscription | Conditions for Subscription | Interest on the Fund | Penal Interest on Overdraws | Advances from the Fund | Temporary Advance (TA) | Non-Refundable Advance / Part-Final Withdrawal (PFW)

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(For class IV employees the percentage is…..). The minimum subscription is determined on the basic pay drawn on 31st March of the preceding financial year. Subscription may be enhanced twice and/or reduced once during the 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 and should not be credited to GPF.
Interest on the Fund ➨Interest at rate prescribed by Government of AP is credited to the subscribers' account on the last day of every financial year. (Click here for illustrations of interest calculations) ➨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. Penal interest is to be credited to head of account 0049 - interest. 

Advances from the Fund

I. Temporary Advance (TA) ➨A temporary advance is granted to a subscriber from the amount standing to his credit in the Fund by the departmental officers for specified purposes. The amount of advance sanctioned shall not exceed 3 months pay or half the amount at the credit of the subscriber in the Fund, whichever is less subject to the following conditions. Temporary advance is to be applied in the form prescribed. Purposes for drawal of Temporary Advance
  1. To meet expenses in connection with the prolonged illness of the subscriber or any person actually dependant on him;
  2. To pay for the overseas passage for reasons of health or education, or to meet the cost of higher education of the subscriber or any person actually dependant on him;
  3. To pay obligatory expenses in connection with his betrothal and/or marriage, funerals or other ceremonies of persons actually dependant on him.
  4. To meet the cost of legal proceedings instituted by the subscriber for vindicating his position in regard to any allegations made against him in respect of any act done or purporting to be done by him in the discharge of his official duty.
  5. To meet the cost of building or acquiring a suitable house for his residence.
  6. To meet the cost of acquiring a farm land and / or business premises within 6 months of the date of the subscriber’s retirement.
  7. To meet the cost of purchasing a motor-car.
Recovery of Temporary Advance
  1. The advances are recoverable from the subscriber in such number of equal monthly installments as the sanctioning authority may direct, but such number shall not be less than 12 , unless the subscriber so elects, and not more than 24. In special cases where the amount of advance exceeds 3 months’ pay, the number of installments can be more than 24, but in no case more than 36.
  2. When there is an advance running and a second advance is sanctioned, the balance of the previous advance not recovered shall be added to the advance so sanctioned and the subsequent installments for recovery of advances shall be fixed with reference to the consolidated amount.
  3. The recovery shall commence with the issue of pay for the month following the month in which the advance was drawn.
  4. A subscriber may, at his option, repay more than one installment in a month
  5. Recoveries towards refund of Temporary Advances shall not be affected during the last four months of service of subscriber
Imp: Subscriber should ensure that the TA amount drawn is debited to his account in the GPF Slip in the year in which it was drawn. If not, the matter should be brought to the notice of the PAG immediately.
II. Non-Refundable Advance / Part-Final Withdrawal (PFW) ➨Non-Refundable Advance is to be applied in the form prescribed Conditions for Sanction of Non-Refundable Advances ➨Part-Final Withdrawals may be sanctioned by an authority competent to dismiss the subscriber at any time after the completion of twenty years of service or within ten years before the date of his retirement on superannuation, whichever is earlier
RULE REASONS ELIGIBILITY AMOUNT
15-B Expenditure towards higher education including traveling expenditure of self, child. Education includes outside India. On completion of 20 years of service or 10 years service before retirement 3 months pay or half of GPF balance whichever is less. In special cases upto 10 months of pay.
15-C Expenditure towards illness of self and family. ---do--- 6 months pay or half of balance whichever is less. In special cases 3/4th of balance
15-D Expenditure towards marriage and betrothal of self, son, daughter and female dependant. ---do--- 6 months pay or half of balance whichever is less. In special cases upto 10 months pay.
15-E Expenditure towards house building purpose.  After completion of 15 years service or within 10 years of retirement. Upto 3/4ths of the balance or actual cost whichever is less
15-F Expenditure towards acquiring house site. ----do---- 1/4th of balance or actual cost of site whichever is less
15-G Expenditure towards construction of a house on a site purchased from the amount withdrawn under Rule 15-F ---do---- 1/3rd of balance or actual cost whichever is less
15-H Acquiring a farm land or business premises 6 months before retirement Upto half of balance or 6 months pay whichever is less. In special cases upto 3/4th of balance.
15-I Expenditure towards purchase of motor car After 28 years of service or 3 years before retirement Rs.12000/- or 1/4th of balance or actual price whichever is the least.
CONVERSION OF AN ADVANCE TO PART FINAL WITHDRAWAL ➨A subscriber may, at his discretion by written request, convert the balance outstanding under a temporary advance into a part-final withdrawal after satisfying conditions laid down in Rules 15-A to 15-I. DELEGATION OF FINANCIAL POWERS FOR SANCTIONING TA / PFW ➨Power to sanction GPF TA / PFW to Heads of Departments and their immediate deputies will be with the Government in the Administrative Department concerned. ➨Sanctioning Authority should be two levels above the person to whom advances or part final withdrawals are sanctioned. FINAL WITHDRAWAL (CLOSURE) Final withdrawal of accumulation is permitted ➨When subscriber quits the service (on retirement, dismissal, resignation, compulsory retirement, removal etc.) ➨In case of death while in service How to Apply for Closure? ➨Application for closure has to be filed in Prescribed Format ➨The application duly filled in and signed by the subscriber/claimant(s) is to be given to the department for forwarding the same to the Prl. Accountant General along with requisite documents by the Head of Office/ Head of the department as the case may be. Conditions for Closure ➨Subscription and refund to be discontinued during the last four months of service in case of superannuation. Arrears of Pay, DA, IR etc. should not be remitted during the above period. ➨No TA /PFW shall be sanctioned and paid to the subscriber. In exceptional circumstances, where sanction of PFWs is imperative, the same is to be communicated invariably to Prl. Accountant General and acknowledgement obtained. Manner of Payment ➨The Accounts Officer in PAG’s Office closes the account after verifying the ledger accounts and issues an authority for payment to the Drawing and Disbursing Officers concerned. In case of death of the subscriber the fund accumulation payable shall be paid to the person(s) on whom the right to receive the amount is conferred by means of a valid nomination. Where there is no nomination, the amount will be paid to the eligible family members in equal share on the basis of Legal Heir Certificate issued by Revenue Authorities. ➨GPF (AP) Rules do not permit payment of interest beyond the date of authorisation by the Principal Accountant General ➨Interest is allowed up to the end of the month previous to the month in which authorisation for payment of PF balance is issued. As per G.O. No.3 of Finance and Pension II Department dated 8.1.07, interest is to be allowed up to a maximum of 6 months after the month in which such amount became payable ➨E.g. Date of retirement 30th June 2010, Amount is payable on 1st Jul 2010. Interest is allowable for a maximum period of 6 months reckoned from August 2010 to January 2011
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