CHAPTER XI RITES CONTRIBUTORY PROVIDENT FUND RULES Chapter I 1. Short title and commencement: I. These Rules may be called THE RITES CONTRIBUTORY PROVIDENT FUND RULES, 1977. II. These rules shall be deemed to have come into force on and from Ist of July, 1974. III. This Trust and Rules are irrevocable. IV. The object of the Fund is to provide adequate security to the employees in old age and infirmity and Family Pension benefit to them and/or their family on their retirement from service or death under the ACT. 2. Definitions In these Rules, unless the context otherwise requires a) Act means, Employee s Provident Funds and Misc. Provisions Act, 1952. b) Apprentice means, a person who is declared to be apprentice by the Authority specified in this behalf by the appropriate Government; c) Annual accretion in relation to the balance to the credit of a member means the increase to such balance in any year, arising from contribution and interest; d) Accumulated balance due to a member means the balance to his credit, or such portion thereof as may be claimable by him under the Rules of the Fund, on the day he ceases to be an employee; e) Authorised officer means the Central Provident Fund Commissioner, Additional Central Provident Fund Commissioner, Dy. Provident Fund Commissioner, Regional Provident Fund Commissioner or such other officer as may be authorised by the Central Government by notification in the official gazette; f) Basic wages means all emoluments which are earned by an employee while on duty or (on leave or on holidays with wages in either case) in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include
a. The cash value of any food concessions; b. Any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment. c. Any present made by the employer; g) Balance means the total amount to the credit of individual l account of a member in the Fund at any time; h) Board means the Board of Trustees constituted for administering the Fund under these Rules; i) Chairman means the Chairman of the Board of Trustees; j) Commissioner means a Commissioner for Employees Provident Funds appointed under Section 5D of the Employees Provident Funds &Misc. Provisions Act 1952 and includes a Dy. Provident Fund Commissioner and Regional Provident Fund Commissioner. k) Company means the RITES Ltd. l) Continuous service means uninterrupted service and includes service which is interrupted by sickness, accident, authorised leave, strike which is not illegal or cessation of work not due to the employee s fault; m) Contribution means a contribution payable in respect of a member of the fund; n) Children means legitimate children and includes adopted children if the chairman of the trust is satisfied that under the personal law of the employee, adoption of such a child is legally recognized o) Deputationist means person who is on deputation with the company from the central Government, any State Government or any Public Sector Undertaking who is governed by the Provident Fund Rules or Scheme of his parent organization during the period of deputation; p) Employee means any person who is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of the company, and who gets his wages directly or indirectly from the company, and includes any person- i. employed by or through a Contractor or in connection with the work of the Company; ii. engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 or under the standing orders of the Company;
q) Employer means RITES Ltd.; & its Managing Director for the time being in position; r) Employers contribution means and includes contribution made by the Company to the member s Provident Fund Account; s) Employees Pension Scheme means the Employees Pension Scheme 1995 framed under Section 6A of the Employees Provident Funds & Misc. Provisions Act, 1952 as amended as Employees Provident Fund Scheme - 2003. t) Family means; (i). in the case of a male member, his wife, his children, whether married or unmarried, his dependent parents, and the widow and children of his deceased son. Provided that if a member proves that his wife has been judicially separated from him and has ceased under the personal law governing him or the customary law of the community to which the spouses belong, to be entitled to maintenance, she shall no longer be deemed to be a part of the member s family for the purpose of these Rules, unless the member subsequently intimates by express notice in writing to the Board of Trustees that she shall continue to be so regarded; and (ii). In the case of the female member, her husband and her children, whether married or unmarried, her dependent parents, her husband s dependent parents and her deceased son s widow and children Provided that if a member, by notice in writing to the Board to Trustees expresses her desire to exclude her husband and his dependent parents from the family, her husband and his dependents shall no longer be deemed to be a part of the members family for the purpose of these rules, unless the member subsequently cancels in writing any such notice. In either of the above two cases, if the child of a member or as the case may be the child of a deceased son of the member has been adopted by another person and if, under the personal law of the adopter, adoption is legally recognized, such a child shall be considered as excluded from the family of the member. u) Financial Year means the year commencing on the First day of April and ending with 31st day of March; v) Fund means the RITES Contributory Provident Fund established under these Rules; w) Government Security shall have the meaning assigned to it in Public Debts Act 1944 ( 18 of 1944) x) Inspector means a person appointed as such under Section 13 of the Employees Provident Funds & Misc. Provisions Act 1952;
y) Member means a member of the Fund; z) Rules means the rules for the time being in force relating to the Fund; aa) Secretary means Secretary to the Board of Trustees; ab) Scheme means the Employees Provident Fund scheme framed under Section 5 of the Act. ac) Trust means Trust under which the Fund is established and a Trustee means a member of the Board of Trustees; Any other expression, which is applied under these Rules, but not defined herein but defined either in the Act or the Scheme framed there under shall have the same meaning as is give to it therein. 3. Establishment of the fund : The fund shall be deemed to have been established on and from the 1st July, 1977, pursuant to a resolution of the Directors of the company passed at a meeting of the Board of Directors held on 23rd June, 1977 in exercise of the authority conferred on the Directors by Articles 51 (17) of the Articles of Association of the Company. 4. Interpretation and amendment of rules. 1) The fund shall be governed by these Rules as amended from time to time. If any matter arises for interpretation of these Rules, then shall be referred to the Board whose decision shall be final. Provided that any dispute between the Board and the Members regarding the interpretation of these Rules, shall be referred to the Regional Provident Fund Commissioner for his decision, which shall be final and binding upon both the parties. 2) The Board of Directors may after consulting the Board of Trustees and subject to the approval of the Regional Fund Commissioner repeal, add to, vary or alter these Rules and frame such other Rules as may be considered necessary. Provided that no such repeal, addition variation or alteration shall have retrospective affect. 3) In respect of matters, in regard to which these Rules are silent, the provisions of the Employee s Provident Fund Scheme, 1952, shall prevail Further, if any, of the these Rules is not beneficial and or in conflict with the provisions of the Employee s Provident Fund Scheme, 1952, the later shall prevail. The question whether a particular Rule is beneficial or not shall be decided by the Regional Provident Fund Commissioner whose decision will be final.
(1). Membership I. Every employee employed in or in connection with the work of the Company shall be entitled and required to become a member of the Fund from the date of appointment in the organization wef 1.11.1990 and on completion of eligibility period prior to 1.11.90. II. Every employee who is a member of a private Provident Fund maintained in respect of an exempted factory of other establishment to which Act applies and continued as a member of the Fund, shall on joining the Company, become a member of the Fund forthwith. (2). Declaration The company shall before taking any person into employment, ask him to state in writing, whether or not he is a member of any Provident Fund and if he is, ask for the Account No. and/or the name and particulars of last employer. If he is unable to furnish the Account No, it shall require such person to furnish and any such person, shall, on demand, furnish the particulars regarding himself and his nominee required for the Declaration Form. The Company shall enter the particulars in the Declaration Form and obtain the signature or thumb impression of the person concerned. (3). Transfer of Accounts Where an employee employed in an Establishment, to which the P.F Act applies leaves his employment and obtains reemployment in another Establishment to which Act does not apply or vice versa, the amount of accumulations to the credit of such employee shall be transferred to the credit of his account of the Establishment in which he is reemployed, if the employee so desires. (4). Retention of membership A member of the Fund shall continue to be a member until he withdraws under Rule 12 the amount standing to his credit in the Fund. Explanation In case of claim for refund by a member under Rule 12, the membership of the Fund shall be deemed to have been terminated from the date the payment is authorised to him by the Authority irrespective of the date of claim. (5). Resolution of doubts If any question arises whether an employee is entitled or required to become or continue as a member, or as regards the date from which he is so entitled or required
to become a member, the decision thereon of the Regional Provident Fund Commissioner, Delhi shall be final; Provided that both the employer and the employee have been heard. 6.A. Rate of Contribution 1) The contributions payable by the Employee to the Fund shall be at the rate prescribed from time to time i.e. 12% (wef 01.06.89) of the basic wages and dearness allowance (including the cash value of any food concessions) and retaining allowance if any payable to each employee who is eligible for membership of the fund. 2) The contribution payable by the Employer shall be equal to the contribution payable by the employee. 3) The contribution shall be calculated on the basis of basic wages, dearness allowance (including the cash value of any food concession & retaining allowance if any) actually drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis. 4) Each contribution shall be calculated to the nearest rupee, 50 paise and above to be counted as the next higher rupee and fraction of rupee less than 50 paise to be ignored. 6.B. Payment of contribution 1) It shall be the responsibility of the principal employer to pay both, the contribution payable by himself and also on behalf of a member employed by him directly or by through a contractor and also inspection charges on the same. 2) The amount of contribution and any charges for meeting the cost of administering the funds payable by Company in respect of any member employed by or through contractor may be recovered by Company from the contractor, either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor. 3) Contractor from whom the amount mentioned in sub section (2) is recovered may recover the employee s contribution from such employee by deduction from the basic wages, dearness allowance ( including the cash value of the food concession) and retaining allowance if any payable to such employee. 6.C. Recovery of member s share/contribution 1) The amount of a Member s contribution paid by the Company or by a contractor shall, notwithstanding the provisions in these Rules, or any law for the time being in force or any Contract to the contrary, be recoverable by means of deduction from wages of the member and not otherwise.
Provided that no such deduction may be made from any wages other than that which is paid in respect of the period or part of the period in respect of which the contribution is payable. Provided further that the company or a contractor shall be entitled to recover the employee s share from wages other than that which is paid in respect of the period for which the contribution has been paid or is payable where the employee has in writing given a false declaration at the time of joining service with the Company or a contractor regarding his last establishments. Provided further that where no such deduction has been made on account of an accidental mistake or a clerical error, such deduction may be made from the subsequent wages. 2) Deduction made from the wages of a member paid on daily, weekly or fortnightly basis should be totalled up to indicate the monthly deductions. 3) Any such deducted by the Company or contractor from the wages of an employee under these rules shall be deemed to have been entrusted to him for the purpose of payment the contribution in respect of which it was deducted. 6.D. Company s share not be deducted from members. NOTWITHSTANDING any contract to the contrary, the Company or a contractor shall not be entitled to deduct the Company s contribution from the wages of a member or otherwise to recover it from him. 6.E. Payment of contribution by Company The contribution of the members collected by the Company shall be paid by the Company alongwith the Company s contribution to the Trust within 15 days of the close of each month. Provided that if a member quits service or dies, the Company s contribution for the period between the preceding month and the date of quitting the service or death as the case may be shall be paid to the Trustees within 15 days of the event. If the Company fails to pay the contribution within the time limits as aforesaid to the Trustees, it shall be liable to pay simple interest as well as may be prescribed by the Regional Provident Fund Commissioner from time to time in the same manner in which the un -exempted establishments are liable to pay under similar circumstances. 6.F. Contribution to Family Pension Fund 1) From and out of the contributions payable by the company and the employees in each month, a part of the contribution, representing 1-1/6% of the employee s pay alongwith an equivalent amount of 1-1/6% from and out of the company s contribution shall be remitted by the company to the Family Pension Fund by a separate Bank Draft or cheque on the account of Family Pension Fund
Contribution in such manner as may be specified in this behalf by the Commissioner. The cost of the remittance, if any, shall be borne by the Company 2) The contributions payable under sub para (1) shall be calculated on the basis of the basic wages, dearness allowance (including the cash value of any food concession) and retaining allowance, if any actually drawn during the whole month whether paid on daily, weekly, fortnightly or monthly basis, and the contributions payable under sub para (2) shall be calculated on the basic wages, dearness allowance ( including the cash value or any food concession) and retaining allowance, if any drawn during a whole month immediately preceding the period of service without wages, whether paid on daily, weekly, fortnightly or monthly basis. CHAPTER II 7. Management of the Fund 1) The custody, control and management of the Fund shall be vested in a Board of Trustees, constituted by the Company. 2) The Board of Trustees shall consist of four trustees, of whom two shall be representatives of the Company to be nominated by it from amongst officers employed in managerial or administrative capacity in the Company including one employed in managerial or administrative capacity in the Company including one from the Finance & accounts Division, who shall act as the Secretary to the Board and two representatives of the employees of the Company. The Rules for constitution of the Board of Trustees shall be as contained in Rul e B of these Rules. 3) The Board of Trustees shall have power to employ any person (including one or more of their members) to do any secretarial, legal, accountancy or other work, which they may consider necessary or expedient in connection with the management of the Fund. 4) Any two trustees, including one representative of the employees shall act jointly, on behalf of the Board of Trustees and operate on the accounts of the Fund with Banks and discharge, receive or otherwise dispose of, as may be necessary, Government promissory Notes, Securities, interest warrants, etc. relating to the Fund, and shall on behalf of the Board, reassign to members in accordance with the Rules provided hereinafter, Life Insurance polices which the members might have assigned to the Board as Security for payment or withdrawals from the Fund. Similarly, all correspondence in relation to the amendment of the Fund, receipts for the money received by Trust including purchase, Sale, Transfer endows, draws interest negotiation or deal with the Central Government and other securities or any documents to be executed on behalf of Fund shall be
done by any two trustees authorised by Board, one of them being the employee s trustee. 5) All moneys contributed to the Fund, that is to say, the contribution by the members and by the Company as provided for hereinbefore, and accruing to the Fund by way of interest or otherwise shall be deposited in the saving bank account in Reserve Bank of India, State Bank of India or in such other scheduled banks as may be approved by Central Government from time to time in the name of the Fund or shall be invested within 2 weeks of the receipt from the Company subject to such directions as the Central Government may give from time to time in the securities as per the pattern of investment as may be prescribed by Central Government from time to time retaining only the bear minimum amount required for grant of advances and settlement of provident fund accounts of outgoing members. 6) Conversion or re-conversion of securities shall be made only as per the directions of Regional Provident Fund Commissioner and in the name of the Fund 7) The securities shall be obtained in the name of Board and shall be kept in the custody of Reserve Bank of India. 8) Failure to make investments as per directions of Government shall make the Board separately or jointly liable to surcharge as may be imposed by the Central Provident Fund Commissioner. 9) The Board shall maintain script wise registers of the securities and ensure timely realization of interest and redemption of proceeds. 10) All expenses of administering the Fund including the maintenance of Accounts submission of accounts and returns, transfer of accumulations, inspection charges, bank charges including the Trustee s remuneration and all expenses incurred by the Trustees in the discharge of their duties shall be reimbursed and paid by the Company. The Company shall also make good any other loss that may be caused to the PF due to theft, burglary, defaultation, misappropriation or any other reason. 11) The Board of Trustees may from time to time withdraw from the Fund such sum or sums as may be required for the purpose of the Funds and raise any money so required by sale, of the investments held by them or of a sufficient part thereof with prior written approval of Regional Provident Fund Commissioner. 8. Board of Trustees 1. Constitution of the Board of Trustees. There shall be a Board of Trustees (hereinafter referred to as the Board ) constituted in the manner provided as under:
A. Number of Members The Board shall consist of an equal number of representatives of the company and the employees. The number of trustees on the Board shall be so fixed as to afford, as far as possible, representation to employees in various branches/departments of the Company Provided that the number of trustees on the Board shall be neither less than four nor more than twelve. B. Company s representatives The company shall nominate its representatives from amongst the offers employed in managerial or administrative capacity in the company. C. Employee s representatives The representatives of the employees shall be elected by the members of the Fund in an election to be held for the purpose of any working day. An outgoing trustee shall be eligible fort re-election or re-nomination, as the case may be. D. Procedure for Election i) Notice for election The employer shall fix a date for receiving the nominations from candidates for election as Employee s representatives. He shall also fix a date for the withdrawal of nominations and the date of election which shall not be earlier than three days or later than ten days after the closing date for withdrawal of nominations. The date so fixed shall be notified to the members at least seven days in advance. The notice shall also specify the number of seats to be filled by the employee s representatives. A copy of such notice shall be sent to the recognized Trade Unions in the Company and to the Regional Provident Fund Commissioner. The election notices and procedure shall be published/conducted in Regional languages besides English. ii) Nomination of Candidates. Nomination shall be made in Form A annexed to these rules. Each nomination paper shall be signed by the candidate to whom it relates and attested by at least two members of the Fund, other than the proposer and shall be delivered to the Employer before or on the closing date fixed by receiving the nominations. iii) Scrutiny of nomination papers The employer shall scrutinize the nomination papers on the date following the last date fixed for withdrawing the nomination papers. The candidate or his nominee, the propser or the attesting members may be present if they so desire. The invalid nomination papers shall be rejected.
(iv) Voting in election 1. If the number of candidates whose nomination has been found valid, is equal to the number of seats, the candidates shall forthwith be declared duly elected. 2. If the number of candidates is more than the number of seats, voting shall take place on the date fixed for election. 3. The election shall be conducted by the employer in the presence of an officer deputed by the Regional Provident Fund Commissioner. 4. Each member of the Fund shall have as many votes as there are seats to be filled in. Provided that each such member shall be entitled to cast only one vote in favour of any one candidate. 5. The voting shall be by secret ballot. E. Filling up of casual vacancies. In the event of a trustee, elected or nominated, ceases to be a trustee during the tenure of the Board, his successor shall be elected or nominated, as the case may be in the prescribed manner.provided that the Trustee(s) so elected, shall hold office only for the unexpired term of the Board of Trustees. F. Term of the office of trustees : I. Board of Trustees once notified as constituted shall have a term of office of at least five years before it vacates office provided that a Board shall continue in office till the next Board takes over. II. The term of the trustees representing employees shall also be 5 years from the date on which their appointment is notified. III. Provided that any such trustee shall notwithstanding the expiry of the said period continue to hold office till appointment of his successor is notified. IV. The Trustee appointed to fill up a casual vacancy shall hold office for the unexpired period of the term of office of trustee in whose place he is appointed and shall continue to hold office on the expiry of the term of office until the appointment of his successor is notified. V. An out-going trustee shall be eligible for re-appointment. 2. Meeting of the Board I. The Board of Trustees shall meet at such place and time as may be decided by the Chairman. II. The Board of Trustees shall meet at least once in every three months.
III. The Chairman may, whenever, he feels reasonable, within fifteen days of the receipt of a requisition in writing from not less than two members of the Board, call a meeting of the Board. 3. Notice of meeting & list of business. Notice of not less than 15 days, indicating the date, time and place of meeting together with a list of business to be conducted at the meeting, shall be sent to each trustee. Provided that when the Chairman calls a meeting for considering any matter which in his opinion is urgent, a notice giving such reasonable time as he may consider necessary shall be deemed sufficient. 4. Chairman to preside at meetings The company shall nominate one of its representatives on the Board to be the Chairman thereof. The Chairman shall preside at every meeting of the Board at which he is present. If the Chairman is absent at any time, the trustees present shall elect one of themselves to preside over the meeting, and the trustee so elected shall exercise all the powers of the Chairman at the meeting, in the event of equality of votes, the Chairman shall exercise a casting vote. 5. Quorum 1. At any meeting of the Board, majority may be treated as quorum provided however one trustee is from the employees side. Any decision taken at a meeting of the Trustees in which quorum is satisfied will be deemed to be the decision of the Board and will be final and binding. 2. If at any meeting the number of trustees present is less than the required quorum, the chairman shall adjourn the meeting to a date not later than, seven days from the date of the original meeting informing the Trustees of the date, time and place of the adjourned meeting and it shall thereupon be lawful to dispose the business at such adjourned meeting irrespective of the number of Trustees present. 6. Disposal of business Each issue considered at a meeting of the Board shall be decided by a majority of votes of the trustees present and voting. In the event of an equality of votes, the chairman shall have a costing vote. Any such matter shall be decided in accordance with the opinion of the majority of trustees allowed and if the opinion is equally divided, the opinion of chairman shall prevail.
Provided further that any trustees may request that the matter referred to the trustees for written opinion be considered at a meeting of the Board and thereupon the chairman, may and if the request is made by not less than two trustees, shall direct that it be so considered. 7. Minutes of the meeting The secretary of the Board of Trustees shall maintain record of the minutes of the meetings of the Board. The record of the minutes of each meeting shall be signed by the Chairman after confirmation, with such modification, if any, as may be considered necessary at the next meeting. The minutes of meeting shall be circulated within 3 days of the meeting. The Secretary shall take necessary steps for carrying out the decisions of the Board. 8. Act of the board not invalid by reason merely of any vacancy in or defect in the constitution etc. No act or proceeding of the Board shall be deemed to be invalid by reason merely of any vacancy in or any defect in the constitution of the Board. 9. Indemnification In the discharge of their duties in the administration of the Find, the Trustees shall be idemnified by the Company against all proceedings costs, damages, charges, expenses, claims, demands, losses and liability caused otherwise than through their or his own negligence or fraud. 10. Resignation A trustee may resign by a latter in writing addressed to the Chairman and his post shall fall vacant from the date on which resignation is accepted. 11. Cessation and restoration of trusteeship A trustee shall cease to be a member of the Board I. If he fails to attend 3 consecutive meetings of the Board without obtaining leave of the absence from the Chairman unless it is satisfied that there were reasonable grounds for the absence; II. If he ceases to be employee of the Company; III. Or ceases to be member of PF of Company; IV. If he is nominee or representative of the recognised Union and Union ceases to be a representative or recognised union; V. Incur any of the disqualification mentioned in Rule 12, as follows:-
12. Disqualification from trusteeship 1. A person shall be disqualified for being nominated as or for being a trustee: I. If he is declared to be of unsound mind by competent court; or II. If he is an un-discharged insolvent; or III. If before or after the commencement of these rules he has been convinced of an offense involving moral turpitude; or IV. If he as an employer in relation to an exempted establishment or an establishment to which the scheme applies has defaulted in the Payment of any dues to the Board of the Statutory Fund recoverable from him under the Provident Fund Act or the Scheme or under these Rules. 2. If any question arises whether any person is disqualified under Sub para (1) it shall be referred to the Central Government and the decision of the Government on any such question shall be final. 13. Removal from trusteeship The Chairman may remove any trustee of the Board: I. If in his opinion such trustee has ceased to represent the interest which he purports to represent on the Board; or II. If he as an employer, has defaulted in the payment of any dues to the Fund recoverable from him under the PF Act or the Scheme. Provided that no such trustee shall be removed unless a reasonable opportunity is given to such trustee and the body whom he represents, of making any representation against the proposed action. 14. Absence from India 1. Before a non-official trustee leaves India a) he shall intimate to the Chairman, of the dates of his departure from and expected return to India, or b) If he intends to absent himself for a period longer than 6 months, shall tender his resignation. 2. If any trustee leaves India for a period of 6 months or more without intimation to the Chairman he shall be deemed to have resigned from the Board of Trustees.
15. Nomination of substitute during the absence of a trustee: (1) If a trustee is unable to attend any meeting of a the Board, he may, by a written instrument signed by him, addressed to Chairman of Board, and explaining the reasons for his inability to attend the meting, appoint any representatives as his substitute for attending that meeting of the Board in his place. provide that no such appointment shall be valid unless: I. Such appointment has been approved by the Chairman of the Board ; and II. the instrument making such appointment has been received by the Chairman before the date fixed for the meeting. (2) A substitute validly appointed under Sub-para (1) shall have the rights and powers of a trustee in relation to the meting of Board in respect of which he is appointed and shall receive allowances and be under obligations as if he was a trustee appointed under the rules. (3) A trustee appointing a substitute for attending any meeting of the Board, shall, notwithstanding anything contained in this para, continue to be liable for the misappropriation or misapplication of the Fund by the substitute and shall also be liable for any act of misfeasance or no-feasance committed in relation to the Fund by the substitute appointment by him 16. Guidelines for the functioning of board of trustees. The trustees shall strictly follow guidelines prescribed by Government of India for functioning of Board of Trustees; (1) The trustees when elected should ensure that there is a proper trust-deed registered. (2) The Board of Trustees shall meet at least once in every three months. (3) No business shall be transacted at a meeting of the Board of trustees unless at least four trustees of the Board are present, of whom at least one should be from employer s side and one from the employee s side. (4) Monthly return submitted to the Regional Commissioner should be placed before the meeting for scrutiny of the trustees. The trustees attending the meeting should affix their signature as a proof of their scrutiny. Their views on the returns should be recorded in the minutes of meeting. (5) The trustees should ensure that the rules of exempted Provident Fund must require approval of all loans by at least two trustees and in case of a large organization with major plants/offices in different locations, the trustees may be allowed to delegate approval of loans to two managers, one of whom may be a personnel/labour officer ( and in his absence an Accounts Officer). Such
delegations should be by name of the manager/officer and not to be specified positions and the trustees must satisfy that the authorised manager/officer is well informed and kept advised about applicable regulations. (6) Similarly settlement of accounts (including transfer of accumulation to another provident fund) should require authorization of at least two trustees. All settlement should be specifically checked by the auditors of the fund (7) The Board of Trustees, wherever the amount of Provident fund has not been transferred by the employers to the Board of Trustees shall pass a resolution to the effect and forward it to the employer and the Regional Provident Fund Commissioner. (8) The trustees should examine if the amount shown as transferred in the return has in effect been transferred and credited to the Bank account of the fund. Specific mention of this scrutiny and the findings should be recorded in the minutes of the meeting. (9) The trustees should also ensure whether the amount shown as invested in the last monthly return has in effect been invested and record a certificate to that effect in the minutes. (10) Once in every year the securities should be scrutinised by the trustees and their findings recorded in the minutes of the meeting. (11) The report of the Provident Fund Inspector and the correspondence relating to the trust funds between the employer and Regional Provident Fund Commissioner should be placed before the meeting of Trustees and their views recorded in the minutes. (12) Within six months of the close of financial year the employer should place the Audited Balance Sheet of the trust before the trustees. (13) The trustees shall, before the close of the financial year, declare the rate of interest for the succeeding year. (14) Along with the Balance Sheet the Chairman should also furnish an annual report to the trustees for their consideration and adoption (15) The Balance Sheet and the Annual Report, after their approval by trustees, should be forwarded to the concerned Regional Provident Fund Commissioner, recognised Union/Association of Employees. (16) All complaints received from the subscribers should be examined by the Board of Trustees. (17) The Board of Trustees shall fix a grievance day once in a month
(18) The Board of Trustees shall have a separate Notice Board of their own and display important decisions, amendments, etc. on it. Wherever non-transfer/non-investment occurs the same should be displayed for the knowledge of the subscribers. (19) The Board of Trustees shall periodically review the issuance of Annual Statement of Accounts, Settlement of Claims, sanction of advances; etc. (20) The Annual Report shall contain the following:- I. The total number of employees of the establishment in each category of work at the beginning of the year, fresh recruitments made/number of employees left during the year, the total number of subscribers at the beginning of the year, the additions during the year and the total number of subscribers at the close of the year. II. The names; addresses of the Board of Trustees. III. Total amount of accumulation in the trust with figures at lease for the past two years. IV. Total amount transferred to the fund (with figures of the last year) V. The rate of interest and total amount of interest debited/credited to the fund. VI. Investments made during the year; Details of the securities to be shown. VII. Claims settled and rejected with the amount sanctioned, loan applications sanctioned/rejected and the amount distributed. VIII. Balance Sheet, Income and Expenditure Account. IX. Constitution-constitution of the Board of Trustees, Number of meetings held during the year and salient decisions. X. Whether the month/annual returns etc. have been submitted to the Regional Provident Fund Commissioner in time or not. If not, reasons, for the same. XI. A statement to the effect as to whether all the conditions of exemption have been complied with. XII. The justification and explanation of the Board in respect of qualifying remarks given by the auditors. XIII. The number of applications for transfer of accounts and their disposal. XIV. The position regarding, issuance of Annual statement of Accounts, the arrears, if any, and the reasons for the same.
XV. The number of inspections carried out and the salient remarks, if any. 21. The Annual report and Accounts of the Provident Fund Trust should be exhibited on Notice Boards of all offices and factories for a minimum period of thirty days. 22. The Provident Fund money kept aside for obligatory payments towards settlement of claims and grant of advances to the members may be kept deposited in the Savings account operated in any Scheduled Bank in the name of the Fund, to be operated jointly by the trustees authorised by the Board, one of them being the employees representative. CHAPTER III 9. Accounts and Audit. 1) The Board of Trustees shall maintain the account in such a manner as the Board may, from time to time, decide. 2) INTEREST SUSPENSE A/C - All interest and other income realized and net profits or losses, if any, from the sale or investment not included therein, the transaction of the Administration account, shall be credited or debited as the case may be to an account called the Interest Suspense A/c. Brokerage and Commission on the purchase and sale of securities and other investments, shall be included in the purchase or sale price as the case may be and not separately charged to the Interest Suspense A/c. 3) At the end of the Financial Year, an Income and Expenditure Account together with a balance sheet of the assets and liabilities shall be laid before the Board at the meeting to be held within six months of the close of the Financial year. For the purpose of Balance Sheet, the Securities shall be valued at the cost price i.e. the price at which they were purchased. 4) The account of the PF maintained by Board of Trustees shall be subject to audit by a qualified independent Chartered Accountant annually. Where considered necessary, the CPFC shall have the right to have the accounts re-audited by any other authorised Auditors and the expenses so incurred shall be borne by the Company. 5) Within 6 months of close of a financial year, the Trustees shall furnish to each member a statement of his account in the Fund as appearing in the Books of Account. The members shall satisfy themselves as to the correctness of the annual statement of their accounts in the Fund and shall bring to the notice of the trustees any errors they may notice in it within six months of the receipt of the statement.
10. Interest 1) The rate of interest to be credited to the Member s account in the Fund shall be determined by the Board of Trustees each year with reference to the net income on the investments of the Fund. 2) Provided that the interest to be credited to the Member s account in any year shall not be less than the rate of interest declared by the Employees Provident Fund Organization. If for any reason, the Board are unable to pay interest at the rate declared by Central Government in respect of an exempted establishment, then the deficiency shall be made good by the Company. (a) Interest calculated at the rates determined in terms of sub-rule (1) shall be credited on the opening balance standing to the credit of the member on 1 st day of April falling within the period of currency. The credit shall be afforded separately to the Company s contribution and to the Member s contribution. b) In case of claim for refund, interest shall be payable upto the end of the month preceding the date on which the final payment is authorised irrespective of the date of receipt of the claim from the claimant concerned. c) Provided that interest upto and for the current month shall be payable on the claims which are authorised on or after the 25th day of a particular month along with actual payment after the end of current month. d) Provided further that the rate of interest to be allowed on claims for refund for the broken currency period shall be at the rate fixed for the financial year in which the refund is authorised. e) The total amount of interest shall be rounded off to the nearest rupee. 2 The aggregate amount of interest credited to the accounts of the members shall be debited to Interest Suspense Account 3 In determining the rate of interest the Board shall satisfy itself that there is no over drawal on the Interest Suspense A/c as a result of the debit thereto of the interest credited to the accounts of members. 11. Declaration & Nomination 1. Each member shall make his declaration in form B a nomination conferring the right to receive the amount that may stand to his credit in the fund in the event of his death before the amount standing to his credit has become payable, or where the amount has become payable before payment has been made. 2. An employee may be allowed by the trustees of the Provident Fund to make a nomination at his discretion conferring on one or more persons the right to receive the amount.
3. If an employee nominates more than one person under sub-rule (1), he shall, in his nomination, specify the amount or share payable to each of the nominees in such manner as to cover the whole of the amount that may stand to his credit in the Provident Fund 4. If an employee has a family at the time of making nomination, the nomination shall be in favour of one or more persons belonging to his family. Any nomination made by an employee in favour of a person not belonging to his family shall be invalid. 5. If, at the time of making a nomination the employee has no family, the nomination may be in favour of any person or 0ersons but ifr the employee subsequently acquires a family, such nomination shall forthwith be deemed to be invalid and the employee may be allowed to make a fresh nomination in favour of one or more persons belonging to his family. 5)(1) Where the nomination is wholly or partly in favour of a minor, the member may, for the purposes of these rules, appoint a major person of his family as defined in clause (t) of rule 2, to be the guardian of the minor nominee in the event of the member predeceasing the nominee and the guardian so appointed. Provided that where there is no major person in the family, the member may, at his discretion, appoint any other person to be a guardian of the minor nominee. 6. A nomination made under sub para (1) by an employee may, at any time, be modified by him after giving a written notice to the trustees of his intention of doing so in Form C or in a form as near thereto as may be. If the nominee predeceases the employee the interest of nominee shall revert to the employee, predeceases the employee the interest of nominee shall revert to the employee, who may thereupon make a fresh nomination in respect of such interest. 7. A nomination or its modification shall take effect to the extent that it is valid on the date on which it is received by the trustees. 12. Circumstances in which payment of accumulations in the fund is payable (1) (a) A member may withdraw the full amount standing to his credit in the Fund immediately; On retirement from service after attaining the age of 58 years, provided that a member, who has not attained the age of 58 years at the time of termination of his service, shall also be entitled to withdraw the full amount standing to his credit in the Fund. (b) On retirement on account of permanent and total incapacity for work due to bodily or mental infirmity duly certified by a registered medical practitioner designated by the Company;
(b) Immediately before migration from India for permanent settlement abroad, or for taking employment abroad; c) On termination of service in the case of mass or individual retrenchment. d) On termination of service under a voluntary scheme of retirement framed by the Company and the employee under a mutual agreement specifying, inter-alia that notwithstanding the provisions contained in sub-clause (a) of clause (oo) of the section 2 of the Industrial Dispute Act, 1947, excluding voluntary retirement from the scope of definition of RETRENCHMENT such voluntary retirements shall, for the purpose be treated as retrenchments by mutual consent of the parties. e) In any of the following contingencies, provided the actual payment shall be made only after completing a continuous period not less than 2 months immediately preceding the date on which an employee makes the application for withdrawan. I. Where company is closed but certain employees who are not retrenched are transferred by the employer to other Company not covered under the Act. II. Where a member is transferred from this Company to other establishment not covered under the Act but is under the same employer. III. Where an employee is discharged and is given retrenchment compensation under the Industrial Disputes Act 1947 (14 of 1947) (1.A) For the purpose of clause (b) of sub-paragraph (1) (i) Where an establishment has been closed, the certificate of any registered medical practitioner may be accepted; (ii) Where there is no medical officer in the establishment, the employer shall designate a registered medical practitioner stationed in the vicinity of the establishment; or (iii) Where the establishment is covered by the Employees State Insurance Scheme, medical certificate from a medical officer of the Employee s State Insurance Dispensary with which, or from the Insurance Medical Practitioner, with whom the employee is registered under that Scheme, shall be produced: Provided that where by mutual agreement of employer and employees a Medical Board exists for any establishment or a group of establishments, a certificate issued by such Medical Board may also be accepted for the purpose of this paragraph;
Provided further that it shall be open to the Regional PF Commissioner to demand from the member a fresh certificate from a Civil Surgeon or any doctor acting on his behalf where the original certificate produced by him gives rise to suspicion regarding its genuineness; Provided further the entire fee of the Civil Surgeon or any doctor acting in his behalf shall be paid from the Fund in case the findings of the Civil Surgeon or any doctor acting on his behalf agree with the original certificate and that where such findings do not agree, only half of the fee shall be paid from the Fund and the remaining half shall be debited to the member s account. (iv) A member suffering from tuberculosis or leprosy or cancer, even if contracted after leaving the services of an establishment on grounds of illness but before payment has been authorised, shall be deemed to have been permanently and totally incapacitated for work (2) In cases other than those specified in Sub-para (1), the employee shall be entitled to withdraw full employer s share of PF contribution standing to his credit in the fund on ceasing to be an employee of Company. Provided that he has not been employed in any other Company to which the Act applied for a continuous period of not less that 2 months immediately preceding the date on which he makes the application for withdrawal and the requirement of 2 months waiting period shall not apply in cases of female members, resigning from the service of the Company for the purpose of getting married. (3) Any employee who withdraws the amount due to him under Sub-para (2) shall on obtaining re-employment in a Company to which the Scheme applies, be required to qualify again for the membership of the Fund and on qualifying for membership shall be treated as a fresh member thereof. 13. Accumulations of a deceased member to whom payable; On the death of a member whatever his length of service before the amount standing to his/her credit has become payable or where the amount has become payable but payment has not been made: (i) If a nomination made by the member in accordance with Rule 11 subsists, the amount standing to his credit in the Fund or that part thereof to which the nomination relates shall become payable to his nominee or nominees in accordance with such nomination; or (ii) If no nomination subsists or if the nomination relates only to a part of the amount standing to his/her credit in the Fund the whole amount or the part thereof to which the nomination does not relate, as the case may be, shall become payable to the members of his family in equal shares;
Provided that no share shall be payable to:- (a) Sons who have attained majority. (b) Sons of the deceased son who have attained majority (c) Married daughters whose husbands are alive (d) Married daughters of a deceased son whose husbands are alive, if there is any member of the family other than those specified in Clauses (a), (b), (c) & (d). Provided further that the widow or widows and the child or the other children of a deceased son, shall receive between them in equal parts only the share which that son would have received if he survived the member and had not attained the age of majorty at the time of the member s death. (iii) In any case to which the provisions of clauses (I) and (ii) do not apply, the whole amount shall be payable to the person legally entitled to it. Explanation For the purpose of this para a member s posthumous child if born alive, shall be treated in the same way as a surviving child born before the member s death. Note : In the event of death of a member, a minimum of Rs.2,000/- will be paid to the nominee(s), even if the accumulations in the account of the member in the Fund are less that this amount. 14. Permanent withdrawal from the fund A. Financing of Member s Life Insurance Policies - (1) Where a member desires that premium due on a policy of Life Insurance taken by him on his own life should be financed from his Provident Fund Account, he may apply in such form and in such manner as may be prescribed by the Board of Trustees. (2) On receipt of such application the Board may make payment on behalf of the member to the Life Insurance Corporation of India towards premium due on his policy: Provided that no such payment shall be made unless the premium is payable yearly. (3) Any payment made under sub-paragraph (2) shall be made out of and debited to the member s own contribution with interest thereon standing to his credit in the Fund.