7.1 Application
- The provisions contained in these rules shall apply in the employees of the College who have not otherwise exercised an option to join the General Provident Fund –cum-Pension-cum- Gratuity Rules.
- No employee of the College shall be entitled to the benefits of the contributory Provident Fund whose service in the College entitles him to Pension and Gratuity or on whose account the College contributes towards Pension or who has been appointed by the College on consolidated salary or on special terms which exclude the benefits of the Provident Fund.
Provided that persons appointed in the College on probation or in any temporary capacity, shall be entitled to Contributory Provident Fund of the College from the date of appointment and on confirmation the College shall add its contribution with retrospective effect from the date of appointment.
Provided that any employee who was holding any substantive post in Govt./Semi-Govt. or an autonomous body and joins this College after resigning the post will be entitled to the College contribution from the date of appointment if he opts for C.P.F. cum gratuity scheme.
- The Board of Governors may in case of a person appointed to a substantive post, permit the transfer to the Provident Fund or any money standing to his credit in any recognized Provident Fund to which he was a subscriber immediately before his appointment in the College and may, with his consent, make such arrangement with the authority of that Provident Fund for the purpose of its transfer, whether in the form of cash or of securities, or of both, as may be convenient.
7.2 Definitions
In this schedule, unless the context otherwise requires:
(a) “Salary” means total emoluments excluding House Rent Allowance for the purpose of deduction to be made towards the Contributory Provident Fund but includes all other allowances i.e. Dearness Allowance, additional Relief and any other allowance supplementary to Dearness allowance.
(b) “Family” means
In the case of a male subscriber, the wife or wives and children of a subscriber and the widow or widows and children of a deceased son of the subscriber.
Provided that if a subscriber proves that his wife has been judicially separated from him or has ceased under the customary law of the community to which she belongs to be entitled to maintenance, she shall henceforth be deemed to be no longer a member of the subscriber’s family in matter to which these rules relate, unless the subscriber indicates by notification in writing to the Principal that she shall continue to be so regarded.
In the case of a woman subscriber, the husband and children of the subscriber, and the widow or widows and children of a deceased son of the subscriber.
Provided that if a subscriber by notification in writing to the Principal expresses her desire to exclude her husband from her family, The husband shall henceforth be deemed to be no longer a member of the subscriber’s family in matters to which these rules relate, unless the subscriber subsequently cancels formally in writing notification excluding him.
Note: 1.
Children means legitimate children.
Note: II.
An adopted child shall be considered to be a child by the Principal or if any doubt arises in the mind of Principal after obtaining legal advice is satisfied that under the personal law of the subscriber, adoption is legally recognized as conferring the status of a natural child, but in this case only.
Note: III.
When a person has given his child in adoption to another person and if, under the personal law of the adopter, adoption is legally recognized as conferring the status of a natural child, such a child should for the purpose of these rules be considered as excluded from the family of the natural father.
(c) “Fund ” means the Beant College of Engineering & Technology Contributory Provident Fund .
(d) “Year” means the financial year.
(e) “Subscription” means the amount paid by the subscriber and
(f) “Contribution” means the amount contributed by the College.
7.3. Constitution and Investments
The fund shall be established by the College for the benefit of the employee of the College.
- The fund which shall be maintained in rupees shall be constituted with the subscription paid by the subscribers and contributions made by the College and shall include interest paid to the credit of the account of the subscriber.
- The management of Fund is vested in the Board subject to the control and direction of the Board. The Principal shall administer the Fund for and on behalf of the Board.
- The Board may from time to time make regulations for the constitution and management of Fund or the investment of sums at credit of the Fund or the privileges of subscribers not herein expressly provided for and may add to, vary or cancel any regulations so made.
7.4 Declaration
Every employee of the College entitled to the benefits of the Fund shall be required to sign a written declaration in the form set forth that he has read these rules and agrees to abide by the provisions contained in it.
7.5 Nominations
- A subscriber shall at the time of joining the Fund, send to the Principal a nomination in the prescribed form conferring on one or more persons the right to receive the amount that may stand to his credit in the Fund, in the event of his death, before that amount has become payable and has not been paid.
Provided that, if at the time of making the nomination, the subscriber has a family, the nomination shall not be in favour of any person or persons other than the members of his family.
Provided further that the nomination made by the subscriber in respect of any other Provident Fund to which he was subscribing before joining the Fund shall if the amount to his credit in such other fund has been transferred to his credit in the Fund, be deemed to be a nomination duly made under this para until he makes a nomination in accordance with this rule.
- If a subscriber nominates more than one person under Rule
- He shall specify in the nomination the amount of share payable to each of the nominees in such a manner as to cover the whole of the amount that may stand to his credit in the Fund at any time.
- Every nomination shall be in such one of the forms as is appropriate in the circumstances.
- A subscriber may at any time cancel a nomination by sending a notice in writing to the Principal. The subscriber shall, alongwith, such notice or separately send a fresh nomination made in accordance with the provisions of this para.
- A subscriber may provide in a nomination:
- In respect of any specified nominee, that in the event of his predeceasing the subscriber, the right conferred upon that nominee shall pass to such other person or persons as may be specified in the nomination, provided that such other person or persons shall, if the subscriber has no other member of his family, be such other member or members. Hence the subscriber confers such a right on more than one person under this clause, he shall specify the amount of share payable to each of such members in a manner as to cover the whole of the amount payable to the nominee.
- That the nomination shall become invalid in the event of the happening of a contingency specified therein.
Provided that, if at the time of making the nomination the subscriber has no family, he shall provide in the nomination that it shall become invalid in the event of his subsequent acquiring a family.
Provided further that, at the time of making nomination the subscriber has only one member of the family, he shall provide in the nomination that the right conferred upon the alternate nominee under clause
(i) shall become invalid in the event of his subsequently acquiring other member or members of his family.
- Immediately on the death of a nominee in respect of whom no special provision has been made in the nomination or on the occurrence of any event by reason of which the nomination becomes invalid or the provision thereto, the subscriber shall send to the Principal a notice in writing canceling the nomination together with a fresh nomination made in accordance with the provisions of this para.
- Every nomination made, and every notice of cancellation given by a subscriber shall, to the extent that it is valid, take effect on the date on which it is received by the Principal.
The College shall not be bound by nor shall recognize any effect while disposal of the amount standing to the credit of a subscriber who dies before the amounts become payable.
- In case a subscriber fails to make any nomination or the nomination made by him is found invalid the payment of the amount lying to his credit shall be made on his death, in the manner provided for in the rules relating to Punjab Govt.
7.6 Subscriber's Account
An account shall be opened in the name of each subscriber in the form set forth in which will be shown:
- the subscriber’s subscriptions
- contributions made by the College to his/her account
- interest accrued on credit balance.
7.7 Condition and Rate of Subscription
- Every subscriber shall subscribe monthly to the Fund when on duty or on foreign service but not during the period of suspension.
Provided that a subscriber on re-instatement after a period passed under suspension shall be allowed the option of paying in lump sum, or in installments, any sum exceeding the maximum amount of arrears of subscriptions permissible for that period.
- A subscriber may, at his option, not subscribe during leave other than on average pay or earned leave of less than 30 days duration by sending a notice in writhing to the Principal before or soon after proceeding on leave.
Failure to give due and timely intimation shall be deemed to constitute acquissence to subscribe. The option of a subscriber intimated under this para shall be final.
- The subscription to the Fund shall be 10% of the salary of the subscriber.
Provided that if any employee so desires, he may subscribe at the rate of 60% of his salary but the contribution of the College shall be 10% of his salary.
- The amount shall be expressed in whole rupees.
- The subscription so deducted month by month from the salary of each employee shall be paid into the fund to the credit of the subscriber.
- The subscriber shall forward his dues monthly to the College when salary is drawn from any other source than the College.
- The amount of subscription once fixed may be enhanced or reduced only once during the course of a year.
7.8 Contribution by the College
- At the time of withdrawal of salary each month a sum equal to 10% of the salary of the subscriber shall be contributed to the fund by the College and subject to the condition contained in the provision to be placed to the credit of the subscriber.
- No employee shall be entitled to receive any part or share in any sums contributed by the College to the fund and no interest which has accued on such contribution of the service unless he has established to the satisfaction of the College that his resignation is necessitated by incapacity for further service.
7.9 Maintenance of Account
- The Principal shall cause to be maintained proper accounts relating to the Fund showing the amount for the time being at the credit of each subscriber and the general state of the fund.
- The Principal shall also verify the entries relating to the opening balance, deposits and withdrawal during the half year and add interest accrued during the half year, in respect of each subscriber in the Pass Book maintained.
7.10 Investment of Fund
- All sums paid into the Fund under the rules shall be deposited in the name of “Beant College of Engineering and Technology, C.P.F.” with any Nationalized Bank.
- The balance of the Fund after reserving suitable amounts for current needs shall be invested in Fixed Deposit Receipts in any Nationalized Bank. All such investments shall be held in the name of the College.
- The interest realized on such investments shall be treated as Miscellaneous Receipts.
7.11 Interest
- The rate of interest to be allowed on all sums deposited to the Fund shall be such as may be determined from time to time by the Board.
- The amount of such interest shall be placed to credit of each subscriber half yearly.
- The total amount of interest shall be rounded to the nearest rupee.
- The interest to be charged on the money advanced to the employee shall be recovered at the rate at which interest is credited by the College to the subscribers.
7.12 Witdrawal of Temporary Advance
- A temporary advance from the Fund may be permitted by the Principal to the subscriber and in the case of Principal by him self subject to the condition that no advance shall be granted unless the sanctioning authority is satisfied that the applicant’s pecuniary circumstances justify it, and that will be expended on the object or objects for which it is granted and not otherwise.
- Advance for the purchase of Plot/Construction of House/ Purchase of House may be granted equal to 60 months pay to defray the cost of purchase of a house or construction of a house or purchase of land for construction of house provided:
- The subscriber or any other member of his family has no residential house of his own and that he has subscribed to the Fund for not less than 5 years.
- An advance shall in no case exceed employee’s own subscription and interest thereon, when a subscriber has served for not more than eight years in the College where after he may also be advanced 50% of the College contribution including interest thereon.
- An advance equal to 60 months pay may be drawn in more than one installment.
- Advance for the purchase of Motor/Motor Cycle/ Scooter/ Moped may be granted subject to the conditions that:
- The subscriber has subscribed to the Fund for not less than 3 years.
- Advance for the purchase of Motor Cycle/ Scooter/ Moped shall be admissible to the subscriber drawing basic pay not less than Rs.1200/- per month and it shall be limited to 15 months pay or the actual price of the conveyance, whichever is less.
- Advance for the purchase of Motor Car shall be admissible to a subscriber drawing basic pay not less than Rs. 3000/- monthly and it shall be limited to Rs. 80,000/- or the cost of car whichever is less.
Provided that an advance in these cases shall in no case exceed the amount of subscription and interest thereon standing to the credit of the subscriber.
Provided further that a second advance for the purchase of Motor Cycle/Scooter/Moped shall not be granted until at least 5 years have passed since the grant of first advance.
- Advance for Ceremonies and other obligatory expenses may be granted.
- To pay expenses in connection with prolonged/serious illness of the applicant or any other family member actually dependent on his. This advance will be admissible on the recommendation of the Medical Officer.
- To pay for the overseas passage only for the reasons of health or education of the applicant or any other person actually dependent on him. Advance from the Fund may also be granted to meet the cost of education of himself or family member actually dependent on him in the following type of cases:
- For education outside India whether for academic, technical, professional or vocational courses.
- For medical, engineering and other technical or specialized courses in India beyond the high school stage. Provided that the duration of the course of study is not less than three years.
- To pay obligatory expenses on a scale appropriate to the applicant’s status which by customary usage the applicant has to incur in connection with the subscriber’s own marriage, funeral or other ceremonies of persons actually dependent on him/her and to meet the cost of legal proceedings for vindicating his/her position in regard to any allegation made against him/her in respect of any act done by him/her in the discharge of the official duty.
Provided that the advance shall not be admissible in respect of any matter unconnected with his/her official duty.
Provided further that the condition of actual dependency shall not apply in the case of son or daughter of the subscriber.
- An advance admissible under above rules shall in no case exceed the amount of the
subscription and interest thereon standing to the credit of the subscriber in the Fund and shall be limited to a six months pay.
- An advance shall not, except for special reasons to be recorded in writing by the sanctioning authority, be granted until at least twelve months after the final payment of all previous advances together with interest thereon, unless the amount already advanced not exceed two third of the amount admissible.
In case falling under the above rules advances may be granted by the sanctioning authority to pay debt incurred; provided an application duly supported with documentary proof and affidavit is made within 30 days after the event to which it relates.
- Advance for purchase of wheat may be granted to employee drawing pay up to Rs. 1200/- p.m. to the maximum of Rs.1000/- out of the balance credit in his/her account on the one half of balance with interest thereon at the credit of the subscriber in his/ her account whichever is less. The advance shall be recoverable in equal monthly instalments. The last instalment will be recovered from the salary of the concerned employee for the month of February paid in March
7.13 Withdrawal of Non Refundable Advance
- Non- refundable advance from the fund may be permitted by the Principal to the subscriber subject to the condition that no advance shall be granted unless the sanctioning authority is satisfied that the applicant’s pecuniary circumstances justify it and that it will be expended on the object or object for which it is granted and not otherwise.
- A subscriber after the completion of 20 years service ( including broken period if any) or within 10 years before the date of his/ her retirement on superannuation, whichever is earlier be granted an advance equal to six months pay or his credit, whichever is less to meet the expenses in connection with marriage/ higher education of subscriber’s daughter/ son. If two or more marriage are to be celebrated simultaneously the amount admissible in respect of each marriage will be determined as the advances are sanctioned separately one after the other.
The advance for the higher education will be admissible in the following type of cases:
- For higher education outside India whether for academic, technical, professional or vocational courses beyond the high school.
- For any medical, engineering and other technical or specialized courses in India beyond the high school stage. Provided that the duration of the course of study is not less than three years.
In sanctioning Non-Refundable advance under this clause the temporary advance outstanding against the subscriber if any, will be taken into account.
- A subscriber after the completion of 6 years service including broken periods if any, or within 10 years before the date of his/ her retirement on superannuation whichever is earlier may be granted an advance equal to 60 months pay of the subscriber or employees own subscription plus 50% of the College contribution including interest thereon, whichever is less, for building or acquiring a suitable house for his residence including the cost of the site. For purchasing a house site or for constructing a house on a site purchased utilizing the sum withdrawn for the purpose. Advance may be drawn in installments twice a year.
- A subscriber with a basic Rs 3000/- per month and has put 15 years service may be granted a Non-Refundable advance from C.P.F. for purchase of Motor Car. The limit of the advance is not to exceed Rs 80,000/- or 30 months pay of the subscriber or half of the balance with interest thereon at the credit of the subscriber in C.P.F. or the actual price of the car whichever is less.
- A subscriber with a basic pay not less than Rs.1200/- per month who has put in 10 years service may be granted Non-Refundable advance from the C.P.F. for the purchase of Motor Cycle/Scooter/Moped. The limit of the advance is not to exceed balance with interest thereon at the credit of the subscriber in his/her C.P.F. account or actual price of Motor Cycle / Scooter/Moped which ever is less.
- A subscriber with 5 years of service may be granted a non-Refundable advance not exceeding Rs. 800/- from the C.P.F. account for the purchase of a bicycle or half of the balance at the credit of the subscriber in his/ her C.P.F. account, whichever is less.
The Second advance for purchase of Motor/Scooter/Moped/Cycle shall not be granted until atleast 5 years passed since the grant of first advance.
- A subscriber who draws a temporary advance under the ordinary rules may convert at his/ her discretion by written request addressed to the Principal the balance outstanding against him/ her into Non-Refundable advance satisfying the condition laid down in these rules.
- A subscriber who has been permitted to withdraw money from the fund shall satisfy the Principal within a period of three months that the money has been utilised for the purpose for which it was withdrawn and if he fails to do so, the whole sum so withdrawn or so much thereof as he has not been applied for the purpose for which it was withdrawn shall forth with be repaid in lump sum together with interest thereon by the subscriber to the fund in default of each such payment it shall be ordered by the sanctioning authority to be recovered from his salary either in lump sum or in such number of monthly installments as may be determined by the Principal.
7.14 Recovery of Advances
- An advance shall be recovered from the salary of the subscriber in such a number of equal monthly installments, as the sanctioning authority may direct but such number shall not be less than 12 unless the subscriber so elect or in any case not more than 24. In special circumstances the sanctioning authority with the concurrence of the Principal may fix such number of installments to be more than 24 in no case more than 36. A subscriber may, at his option, make repayment in a small number of instalments than the prescribed. Each instalment shall be a number of whole rupee. The amount of the advance being raised or reduced, if necessary, to admit of the limitation of such instalment. However, in case of any advance equal to 15 months pay/ advance for Motor Cycle/ Scooter/ Moped the recovery in 40 instalments and in case of an advance equal to 80 months pay/ advance for car, the recovery in 96 instalments and in case an advance to 60 months pay recovery in 100 instalments shall be made.
- Recovery shall not be made with the subscriber consent when he is on leave or is in receipt of subsistence grant and may be postponed by the sanctioning authority.
- If more than one advance has been made to a subscriber, such advance shall be treated separately for the purpose of recovery.
- (i) After the Principal of the advance has been fully repaid interest shall be paid at the same rate as the College pays interest on all similar deposits in the fund on the Principal for each month or broken portion of a month during the period between the drawl and complete repayment of the Principal.
(ii) Interest on advance shall be calculated and added to the Principal in the first instance and it shall be recovered in equal prescribed instalments.
- Recoveries made under this rules shall be credited, as they are made, to the account of the subscriber in the fund.
A subscriber who has been permitted to withdraw money from the fund shall satisfy the Principal within a period of three months that the money has been utilised for the purpose for which it was withdrawn and if he fails to do so, the whole sum so withdrawn or so much thereof as has not been applied for the purpose for which it was withdrawn shall forthwith be repaid in one lump sum together with interest thereon by the subscriber to the fund and in default of each such payment it shall be ordered by the sanctioning authority to be recovered from his salary either in lump sum or in such number of monthly instalments as may be determined by the Principal.
7.15 Amount When Payable
- Subject to the provisions of this schedule the amount standing in the fund to the credit of a subscriber shall become payable on the death of a subscriber or on his quitting the service of this College.
- If the payment is not taken within one year of its becoming due by the subscriber or his nominee or such other family member as may be eligible for payment, no interest shall be paid on the deposits after one year.
7.16 Gratuity
- Gratuity shall be granted for good, efficient and faithful service to whole time employees of the College and shall exclude the following:-
- Casual and non regular employees.
- Employees on deputation.
- Employees on contract basis
- Apprentices and trainees and reemployed persons
- It shall be granted in the following circumstances.
- Discharge on abolition of post
- Permanent incapacity owing to bodily or mental infirmity
- Superannuation
- Voluntary retirement after 20 years of qualifying service or on reaching the age of 50 years. Provided that
- Gratuity shall not be admissible to an employee who resigns from service (Voluntary retirement after 20 years qualifying service shall not constitute resignation) or where services are terminated for misconduct, insolvency or inefficiency.
- Except in the case of death, gratuity will be admissible only after 5 years of qualifying service.
- Qualifying service shall mean all service rendered in the College after completion of 18 years of age except periods of service rendered as apprentice and extraordinary leave without salary.
- The amount of gratuity will be one-fourth of the emoluments of the person for each completed monthly period of qualifying service subject to 16-1/2 (sixteen and half ) times the emoluments in the case of class I, II, III services and 17-1/2 (seventeen and half) times the emoluments in case of class IV employees, provided that in no case gratuity shall exceed Rs. 50,000/-. In the event of death of an employee while in service the gratuity will be subject to a minimum of 12 times the emoluments of the employee at the time of death provided that in no case it shall exceed Rs. 50,000/-.
- The above rules will stand automatically revised as and when corresponding rules of Punjab Govt. are revised.
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