Clarification – Eligibility of Married Daughters in GP Fund and Surrender of GP Share dt 22.09.2023

Clarification – Eligibility of Married Daughters in GP Fund and Surrender of GP Share dt 22.09.2023

OFFICE MEMORANDUM

Subject: Married Daughters

I am directed to refer to your letter bearing No. ITT(FD)3-14/2010, dated 29.08.2023 on the subject and the case has been examined and it is clarified as under:

• while on leave has been permitted to retire or been declared by a competent medical authority to be unfit for further service of
• desires retirement, months payment within six before his retirement.

the amount standing to his credit in the Fund shall, upon application made by him in that behalf to the Accounts Officer, become payable to the subscriber:

Provided that the subscriber, if he returns to duty, shall if required to do so by Government, repay to the Fund, for credit to his account the whole or part of any amount paid to him from the Fund in pursuance of this rule with interest thereon at the rate provided in rule 1.13 in cash or securities, or partly in cash and partly in securities by installments or otherwise, by recovery from his emoluments or otherwise, as may be directed by the authority competent to grant an advance under sub-rule (1) of rule 1.14.

1.34. On the death of a subscriber before the amount standing to his credit has become payable (see Appendix-V) or where the amount has become payable, before payment has been made:

(i) When the subscriber leaves a family:

• If a nomination made by the subscriber in accordance with the provisions of rule 1.7 in favor of a member or members of his family subsists, the amount standing to this credit in the Fund or the part thereof to which the nomination relates shall become payable to his nominee or nominees in the proportion specified in the nomination;
• If no such nomination in favor of a member or members of the family of the subscriber subsists, or if such nomination relates only to a part of the amount standing to his credit in the Fund, the whole amount or the part thereof to which the nomination does not relate, as the case may be, shall, notwithstanding nomination purporting to be in favor of any a member or person or persons other than members of his family, become payable to the members of his family in equal shares.

Note: A posthumous child of the deceased or the posthumous child of a son of the deceased who, had he been alive would have been entitled to a share of the sum at the subscriber’s credit shall be treated as a member of the family provided the existence (en ventre desamere) of the posthumous child is brought to the notice of the disbursing officer.

Provided that no share shall be payable to:

               (1) sons who have attained legal majority;

               (2) sons of a deceased son, who have attained legal majority;

               (3) married daughters whose husbands are alive; 

               (4) married daughters of a deceased son whose husbands are alive;

If there is any member of the family other than those specified in clauses (1), (2), (3) and (4):

Provided further that the widow or widows and the child or children of a deceased son shall receive between them in equal parts only the share which that son would have received if he had survived the subscriber and had been exempted from the provisions of clause (1) of the first proviso;

(ii) When the subscriber leaves no family if a nomination made by him in accordance with the provisions of rule 1.7 in favor of any person or persons subsists, the amount standing to his credit in the Fund or the part thereof to which the nomination relates, shall become payable to his nominee or nominees in the proportion specified in the nomination.

Kindly refer to the subject noted above.

2.  It is submitted that employee (compulsorily retired on 28-09-2006) named Mr. Syed Izhar ul Hassan, Ex-Deputy District Agriculture Officer KPT died on 06-08-2014 without getting pension/ GPF benefit and his wife Mst. Sarwar Begum also died on 29-05-2013. Her children (married daughters) approached the Ombudsman Punjab through a Complaint Application NO. POP21BWP0001912 (copy of orders attached as Annexure-A) for grant of financial benefits.

3. The Departmental Authorities submitted the GPF Final Payment claim in favor of Mst. Ashreen Shahab along with a copy of Power of Attorney from other married daughters (copies of Power of Attorneys enclosed as Annexure-B) for credit of all GPF Final Payment Dues in her Bank Account. Copy of succession certificate is enclosed as Annexure-C.

4. As per GPF Rule 1.34 (b)(2) of Punjab General Provident Fund Rules, 1978, no share shall be payable to sons who have attained legal majority and married daughters whose husbands are alive (Annexure-D).

5. In order to make lawful payment to the entitled family members in accordance with rules & policies of the Punjab Government, this office may please be advised:-

• The subscriber left no widow, having no son (below 24 Years) but married daughters whose husbands are alive. Who shall be entitled for GPF benefits in the instant case?.
• Whether the payment of all shares can be made only to one member on power of attorney or share be paid to all the individuals?

The matter may please be assigned top priority due to directions of the Orders of the Hon’ble Ombudsman Punjab.