Issues to be discussed

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Lynette Watkins
5 years ago
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1 GENERAL PROVIDENT FUND Issues to be discussed 1. Maintenance of GPF Accounts. 2. Issues impacting quality of maintenance of GPF accounts 3. Minus balance cases. 4. Deficiencies in GPF Final Payment Cases 5. Issues relating to maintenance of GPF a/cs of AIS officers. 6. Maintenance of GPF Consolidated d Broadsheet of Class IV employees. 7. Miscellaneous issues.

2 Maintenance of GPF Accounts : AG office maintains GPF accounts of State Government employees/ais officers/judges and their staff. Group D GPF accounts are maintained by the DDOs of State Govt. AG office also authorizes GPF Final Payment

3 Issues relating to maintenance of GPF Accounts : Volume of Work: Approximately 77,000 GPF accounts are being maintained. Approximately 55,000-60,000 vouchers and challans are received in a month from various accounts rendering units. After compilation of these vouchers and challans posting to individual subscribers accounts is done from GPF schedules/challans. Accounts to be submitted to AG by 10 th of the following month and MCA to State Govt. on 25 th of following month to which month of account relates. So only 10 working days time is obtained for compilation of all vouchers and challans and also posting to individual accounts.

4 Issues impacting quality of GPF accounts: Missing Credits Unposted items Minus Balance

5 Missing Credits Total No. Missing credit items as on = 27,913 Position of Missing Credits for last five years :- Year Total no. of No. of Missing Balance as on Missing Credits Cr. Adjusted

6 Reasons for Missing Credits Due to want of GPF schedules with paybills and challans. Wrong GPF Account No./name in the schedule/challans. No mention of GPF Account No. in the schedules/challans. Non-furnishing of salary month and payable month in the schedules/challans. Due to suspension/leave without pay etc. Impacts due to missing credits: Delayed adjustment of missing credits would create complication Delayed adjustment of missing credits would create complication. GPF final payment authorization gets delayed. Inconvenience to subscribers.

7 Missing Debits Missing Debits arises due to non-receipt of GPF Payment vouchers. AG office takes extra efforts, if any Debit voucher is found missing. Unposted Debits Unposted Debits arises due to wrong GPF account No., wrong name etc. There are no unposted debits. Efforts are taken as when any unposted debit arises.

8 Unposted Credits Toal No. of Unposted Credit items as on = 51 Position of Unposted Credit items for last five years are as follows:- Year Total no. of unposted credit No. of unposted credit adjusted Balance as on

9 Reasons for unposted Credits Due to wrong account no. in the GPF schedules/challans. Due to wrong name in the GPF schedules/challans. GPF monthly subscription received twice for the same subscriber in the same month (either from same establishment or from different establishment). Impacts: Due to unposted credit missing credit arises in subscriber account. Inconvenience to subscriber.

10 Initiatives taken for adjustment of missing credits and unposted tditems: Details of missing credits are shown in the Annual GPF Statements. Details of missing credits are also uploaded on the Website. Regular correspondences/persuasions with concerned DDOs and Finance Department. CDs containing missing credits DDO-wise and subscriber wise from the year to sent to all the Controlling Officers. Peripatetic parties are being sent to some of the offices for collecting documents for adjustment of missing credits/ unposted items.

11 Responses from the DDOs/Head of Offices Responses from the DDOs/Head of Offices is not satisfactory. In some cases documents (copies of schedules/pay bills/ challans) furnished by the DDOs do not relates to the concerned salary month of missing credit. Example : If the missing month is shown in GPF statements/list of missing credits is April 2012 the supporting document for adjustment of missing credit should be furnished for the salary month of March 2012 i.e. the previous month.

12 What DDOs should do about missing credits? As and when DDOs get information about missing credits of subscribers under their establishment, they should : a) Send copies of GPF Schedules/Pay bills/challans relating to missing month (i.e. paid month) for adjustment to AG office. b) Inform AG office if the subscriber is on suspension, leave without pay etc. c) For any clarification AG office may be contacted. Contact Nos. are available on the website and backside of Annual GPF Statement. Also, to reduce missing Credits, DDOs should focus on : a) GPF schedules are in complete shape. b) GPF Account No. and name is correctly written in the schedules etc.

13 Deficiencies noticed in GPF Schedules and Challans In some cases GPF contribution of a subscriber has been deducted either from two establishments or sometimes from the same establishment twice in two separate bills for the same month. This implies, the officials had drawn salary twice in a month which is highly irregular. In some cases GPF subscription have been deducted even in case of expired employees. There should be separate pay bills and GPF Schedules for Gr.C and Gr. D employees. But in somecasesgpf subscriptions for Gr. C & Gr. D subscribers have been clubbed in a same pay bill/ schedule. Such cases are seen mostly in Forest Department.

14 Contd GPF amount deducted from pay bill does not tally/match with the GPF Schedule amount. Sometimes GPF schedules are not attached with the challans. As per Rule 8 of GPF(CS) Rules,1960 the rate of GPF subscription should be not less than 6% of subscriber s emoluments and not more than subscriber s total emoluments. But in some cases it has been observed that the subscribers are contributing more than his monthly total emoluments and less than 6% of his emoluments.

15 Minus Balance Cases Minus Balance cases arises due to overdrawal of GPF amount through Advances/Withdrawals/Part final withdrawals by the subscribers from the GPF account. Responsibility of the DDOs/Heads of Offices to follow the provisions of Rule 12,15 and 16 of GPF (CS) Rules, 1960 strictly while sanctioning any advance/withdrawal from GPF so that the prescribed limit of sanction may not exceed in any case. The matter is of serious concern as it involves irregularities on the part of DDOS/Departments and is likely to cause loss to Government exchequer. As per G.O.I. s decision (5) below Rule 11, DDOs should be responsible for such type of irregularities. All DDOs/Heads of offices should take immediate steps for recovery of excess drawal of GPF advance /withdrawals as stipulated in Sub-rule (7) of Rule 11 of GPF(CS) Rules, 1960.

16 Contd Sub-rule (7) of Rule 11 of GPF(CS) Rules, 1960 states that in case a subscriber is found to have drawn from the fund an amount in excess of the amount standing to his credit on the date of the drawal, the overdrawn amount, shall be repaid by him with interest thereon in one lump. The rate of interest to be charged on overdrawn amount would be 2.5% over and above the normal rate on GPF balance. The amount of minus balance should be deposited through Challan under major head 8009-GPF and the interest realized on the overdrawn amount shall be credited to Govt. account under major head 0049-Interest receipt through a separate challan.

17 Position of Minus Balance cases as on 31 January 2014 Sl.No. Department No. of Minus balance Cases amount ( in ` ) 1. Agriculture 01 19, Animal Resource 02 85,117 Development 3. Education (School) 25 6,48, Fire Service Organization General Administration 01 4, Home (Police) 04 58, Health & Family Welfare 07 2,26, Industries &C Commerce 01 1,30,

18 09. Lb Labour 01 48, Power 04 84, PWD (R&B) 03 1,01, PWD (Water Resource) 01 33, Revenue 01 74, Rural ldevelopment 08 2,62, Social Welfare & Social Education 03 34, Weights & Measures 01 13, Youth Affairs & Sports 01 58,621 TOTAL 68 18,83,570 Out of 68 no. of Minus Balance Cases, no. of live cases are 58 amounting Rs.16,86,557 and no. of final payment cases are 10 amounting Rs.1,97,013. Contd

19 Impact/Implication p of Minus balance cases Minus balances at the time Final Payment are more serious issue since it causes loss to Govt. exchequer. In case, Final Payment cases are received after pension proposals are authorized the amount of minus balance requires to be recovered from Dearness relief of the pensioner. Proceedings can be initiated against DDOs. Penalty on the subscribers.

20 Initiatives taken by AG s office regarding minus balance cases Letters issued to the DDOs/Heads of offices. The matter has been taken up demi-officially with the Secretaries of concerned departments. The matter has also been pursued by the Treasury Inspection parties.

21 Responses from the DDOs/Departments The responses from DDOs/Heads of Offices regarding recovery of minus balance cases is not prompt/satisfactory. What is expected from DDOs? No part withdrawal/advances should be sanctioned after the date of retirement/death or after sending the final payment proposal. DDOs/Head of Offices should verify the balance at credit from the Annual GPF Statement as well as current GPF status available from AG s website before sanctioning any advance/withdrawal in favour of any subscriber. DDOs may educate the subscriber so that they can download their current status of GPF from the AG s website.

22 GPF Final Payment Cases DDOs/Heads of offices should also ensure compulsory stoppage of GPF subscription of the Govt. Servant during the last three months of service on superannuation. Rule 34(3)(iii) of GPF(CS) Rules, 1960: The GPF Final payment cases are to be settled ldat least one month bf before the date of superannuation of the subscriber. For this, the Head of Office/Department should arrange for forwarding the GPF final payment application alongwith details of subscriptions/refund/advance/withdrawals etc. to AG office before three months of retirement of the incumbent. Quantum of Final Payment cases received yearly: Approximately 3500 number of Final Payment cases are received annually..

23 Delay in receipt of Final payment cases: It has been noticed that there is considerable delay in sending the final payment proposals from the Departments. Delay in sending the final payment proposals ranges from 2 (two) months to 28(twenty eight) months from the date of retirement/date of death. Heads of offices/departments should ensure that such inordinate delay in sending the final Payment proposals should be avoided.

24 Impact of delay in receipt of FP cases Unnecessary harassment to the subscriber. Loss to Govt. exchequer as it has to pay interest to the subscriber upto six months after retirement. Loss of interest to the subscriber if the delay in receiving the case is more Loss of interest to the subscriber, if the delay in receiving the case is more the than six months (maximum six months interest is allowed as per Subrule (4) of Rule 11 of GPF Rules)

25 GPF Final Payment Cases (Returned Cases) Final Payment cases are being authorized within two months of receipt. However, 5-10% cases are returned to the department as the proposals are incomplete/inaccurate. Department takes on an average 3 4 months to correct the proposal and for Department takes on an average 3-4 months to correct the proposal and for sending back to AG office which further delays the authorization of PF.

26 Common Deficiencies noticed in the Final Payment Proposals GPF Final Payment Application not received in prescribed form. Columns in the application form are left unfilled like last fund deduction, date of retirement, name of treasury/sub-treasury y where from the payment py is sought for, Advance/Withdrawals during last 12 months preceding the date of retirement/death etc. In Death cases, the Death Certificate and Survival Certificate not furnished. Statement showing last 12 months GPF contribution with bill no. and Date are not furnished.

27 Contd Application not duly stamped and signed by the Head of Office/DDO/Department. It has been observed that in some cases GPF Final Payment proposal was forwarded after finalization of Pension proposal. As a result, in case of minus balance the amount could not be recovered from the gratuity.

28 Check lists for DDOs/Heads of Offices before sending Final Payment Proposals As per GPF Rules Final Payment application should be forwarded after fulfilling the following conditions:- Application should be made in prescribed form. Date of retirement/death/resignation should be clearly mentioned. Death certificate and Survival/Succession certificate should be enclosed. Last fund deduction details. Certificate t of Advance/withdrawal if any, alongwith statement t t showing the GPF deductions for last 12 months immediately preceding the date of retirement/resignation/death.

29 Contd Application should be duly stamped and signed by the head of office /department. All the relevant columns of the Application should be duly filled in. Compulsory stoppage of GPF Subscription three months before the date of superannuation. A certificate from the D.D.O. to the effect that no advance/withdrawals will besanctioned to the subscriber during the last three months before the date of superannuation should be enclosed with the FP proposal. Name of Treasury/Sub-treasury from where the payment is sought for should be mentioned clearly.

30 Initiatives taken by AG s office regarding Final Payment Cases Most of the FP cases are settled within 2(two) months. Regular persuasions are made with the DDOs for the returned cases. Feedbacks are sent in the returned cases within one month from the date of receipt of the FP cases. To facilitate the subscriber to know the present status of Final Payment Cases information are available on AG s website. Feedback provisions ii are also availableonthewebsite. bi

31 Peculiar cases 1. In one case,gpf final withdrawal was drawn by the DDO and deposited and kept in CD accounts for six months (approx.) (pp instead of depositing the undisbursed amount in the Govt. account. As per provisions contained below Rule 283(2)of Central Treasury Rules, Head of office should not retain any un-disbursed amount for period exceeding three months and should deposit the amount to Govt. account under proper major head. In this case, the GPF Final Withdrawal was drawn by the DDO but he could not disbursed the amount. DDOs and Treasury Officers should follow the Central Treasury Rules and Financial rules strictly and deposit the un-disbursed amount to the Govt. Account before exceeding three months.

32 Contd 2. In some cases withdrawal has been sanctioned by the DDO after the death of the subscriber in favour of his family/nominee. As per GPF Rules withdrawal cannot be sanctioned after the death of the subscriber to his family/nominee. Head of office/ddo should instead forward the final payment case to AG office after the death of the subscriber.

33 Issues pertaining to maintenance of GPF accounts of AIS officers and Final payment Cases. Information regarding GPF are made available to the AIS officers on monthly basis through website and SMS Alert System. They can monitor their own account and send necessary feedbacks, if any to AG office for updation /necessary correction. To improve the maintenance of GPF accounts of AIS officers on deputation :- The DDOs may issue LPC to AIS officer proceeding on deputation after clearly mentioning the GPF account number and the name of office maintaining the account (A.G. A&E, Tripura) to avoid miscommunication regarding sending draft/cheques by PAOs of various ministries and DDOs.

34 Contd Updated list of AIS officers who are on deputation may be forwarded to this office by the GA(P&T) department along with their present office address and also informing this office whenever any AIS officer proceeds on deputation. A certificate from the DDO to the effect that no withdrawal/advance will be sanctioned during the last three months of retirement should be submitted in case advance FP proposals.

35 Maintenance of GPF Broadsheets of Class IV employees of State Govt. As per extant rules/codal provisions AG has to maintain department wise broadsheet of GPF accounts of Class IV employees of State Government. For this, DDOs should maintain GPF Broadsheets of Class - IV employees of their establishment. DDOs should furnish to the Head of the Departments monthly statement of credits and debits, annual statement of interest due on GPF deposits and monthly statement of credits and debits as worked out in broadsheet in respect of Class-IV accounts. All the heads of department should furnish to the AG Office: Quarterly and annual consolidated amount of Class-IV GPF credits and debits. Annual closing balance in the prescribed format for Class IV employees

36 Why it is required? This is required for reconciling monthly figures of credits and debits posted from the consolidated certificates of deduction attached to individual pay bills and from the vouchers for temporary and final withdrawal to ensure correctness of accounts. To avoid the risk of fraudulent drawals.

37 Reported Case: It has observed in some of the states like UP, DDOs/HOD are not maintaining broadsheet of GPF (Group D) accounts. The non-maintenance and proving of broadsheet of GPF Group D accounts by DDO have led to fraudulent GPF drawals. Since there were no account controls in treasury and at DDO level, District Judge Ghaziabad could authorize GPF Gr D drawals far in excess of what was available GPF Group D balance with him. This has been widely reported by newspaper in

38 Irregularities noticed in time-barred GPF Final Payment Authorities for re-validation :- It has been observed that in some cases of GPF Final Payment authorities ( issued by AG office) the validity of which has been expired due to nonpayment within 6 months, were not returned back to AG office for revalidation in time. It is the responsibility of the Treasury Officers and also of DDOs to return back the time barred GPF Final Payment authorities to AG office for revalidation. Example : 46 cases in Udaipur Treasury and 6 such cases in Kamalpur Sub-treasury have been found during treasury inspection.

39 THANK YOU

Pension related issues to be discussed

Pension related issues to be discussed Delay in submission of pension proposals. Common dfii deficienciesi in pension proposals. Check list for DDOs for submission of pension proposal. Other issues related