NCJCM : GPF for those who have been recruited on or after 1-1-2004
The SecretaryGovernment of India
Department of Pension and Pensioners welfare
3rd Floor, Lok Nayak Bhawan.
Khan Market, New Delhi.
Sir,
Sub : GPF for those who have been recruited on or after 1-1-2004.
Ref : Item No. 5 of the agenda point
discussed in the 47th meeting of National Council (JCM) held under the
Chairmanship of Cabinet Secretary on 13th April 2019.
You are aware that the Staff side of the
National Council JCM is repeatedly demanding for withdrawing the NPS
and re introduce the defined Guaranteed pension scheme under the CCS
(Pension) Rules 1972 to the employees who have been recruited on or
after 1-1-2004. However pending the same the staff side has represented
for extending the benefit of GPF for those employees who have been
appointed on or before 1-1-2004 and governed under NPS on an optional
basis. In the 47th National Council JCM meeting held on 13-4-2019, the
Staff side reiterated their demand and requested that the GPF scheme may
be extended to the NPS employees who opt for the same as an additional
saving benefit. The Cabinet Secretary desired that the demand of the
Staff Side may be considered favourably. Your good self has also assured
that the demand of the Staff side would be considered and decision
taken at the earliest.
In view of the above we submit the
following justification for extending the GPF benefit on optional basis
to the employees who are governed under the NPS scheme.
The advantage of GPF to the employees is as follows:
(1) The interest rate for GPF accumulation is 8% as on date.
(2) Advances from GPF is permissible for the following purposes.
(i) Illness of self, family members or dependents.
(ii) Education of family members or dependant of the subscriber. Education will include primary, secondary and higher education, covering all streams and educational institutions.
(iii) Obligatory expenses, viz. betrothal, marriage, funerals or other ceremonies.
(iv) Cost of legal proceedings
(v) Cost of defence
(vi) Purchase of consumer durables
(vii) Pilgrimage and visiting places of eminence. This will include any travel and tourism related activities.
(3) Apart from the advances as mentioned above GPF subscribers are entitled for withdrawals from GPF for the following purposes.
(2) Advances from GPF is permissible for the following purposes.
(i) Illness of self, family members or dependents.
(ii) Education of family members or dependant of the subscriber. Education will include primary, secondary and higher education, covering all streams and educational institutions.
(iii) Obligatory expenses, viz. betrothal, marriage, funerals or other ceremonies.
(iv) Cost of legal proceedings
(v) Cost of defence
(vi) Purchase of consumer durables
(vii) Pilgrimage and visiting places of eminence. This will include any travel and tourism related activities.
(3) Apart from the advances as mentioned above GPF subscribers are entitled for withdrawals from GPF for the following purposes.
(i) Education : This will include primary, secondary and higher education covering all streams and institutions.
(ii) Obligatory expenses, viz. betrothal, marriage, funerals, or other ceremonies of self or family members and dependants.
(iii) Illness of self, family members or dependants.
(iv) Purchase of consumer durables.
(v) Housing including building or acquiring a suitable house or a ready built flat for his residence.
(vi) Repayment of outstanding housing loan.
(vii) Purchase of house site for building a house.
(viii) Constructing a house on a site acquired.
(ix) Reconstructing or making additions on a house already acquired.
(x) Renovating, additions or alterations of ancestral house.
(xi) Purchase of motor car/ motor cycle/ scooter etc. or repayment of loan already taken for the purpose.
(xii) Extensive repairs / overhauling of motor car.
(xiii) Making deposit to book a motor car / motor cycle / scooter, moped, etc.
Apart from the above tax deduction under section 80C is also available. Annual statements will be issued on the 1st of April every year.
(ii) Obligatory expenses, viz. betrothal, marriage, funerals, or other ceremonies of self or family members and dependants.
(iii) Illness of self, family members or dependants.
(iv) Purchase of consumer durables.
(v) Housing including building or acquiring a suitable house or a ready built flat for his residence.
(vi) Repayment of outstanding housing loan.
(vii) Purchase of house site for building a house.
(viii) Constructing a house on a site acquired.
(ix) Reconstructing or making additions on a house already acquired.
(x) Renovating, additions or alterations of ancestral house.
(xi) Purchase of motor car/ motor cycle/ scooter etc. or repayment of loan already taken for the purpose.
(xii) Extensive repairs / overhauling of motor car.
(xiii) Making deposit to book a motor car / motor cycle / scooter, moped, etc.
Apart from the above tax deduction under section 80C is also available. Annual statements will be issued on the 1st of April every year.
From the above it is amply clear that
the GPF is more advantages to the employees than the Tier-II scheme of
NPS. Therefore as stated by the staff side in the National Council JCM
meeting held on 13-4-2019 it is once again reiterated that the GPF
scheme may be extended to the willing NPS employees who opt for the
same. Necessary orders in this regard may please be issued at the
earliest. A copy of your instructions may please be endorsed to this
Office.
Thanking you
Yours faithfully
(Shiva Gopal Mishra)
Secretary
Secretary
Source: http://ncjcmstaffside.com/