Chapter 11 - Service, Provident and other Funds


404. A subscriber to a Service, Provident and other Funds is primarily responsible for Booing that his subscription is paid regularly and correctly either by deduction from his pay bill or in cash in accordance with the rules of the Funds concerned.

The instructions for the guidance of Drawing and Disbursing Officers in regard to recovery of subscriptions from Government servants and withdrawal of Fund money from treasury are laid down in Subsidiary Rules 391 to 400 of the Treasury Rules.

Note. - The list of subscribers to Postal Life Insurance Fund shall be maintained in a register and not in the form T.R.52. The pro forma of the register and instructions for its maintenance and the manner of preparation of the monthly schedules to be attached to the pay-bills are mentioned in the Annexure below for the guidance of Drawing and Disbursing officer :


Procedure for Recovery and Accounting of Postal Life Insurance Premia

The Drawing Officers shall maintain in the form mentioned below a corrected and up-to-date register of Policy-holders under their control. The names of the policy-holders shall be :noted in alphabetical order according to surnames leaving sufficient space between two entries to enable names of new policy-holders inserted in the right place. A separate entry shall be made in the register for each policy in the case of a policy-holder having more than one policy. On receipt of an intimation from the Director! Postal Life Insurance, Calcutta, about the issue of a policy in favour of a subscriber authorising the Drawing Officer to commence recovery from pay or on receipt of a Last Pay Certificate In respect of the subscriber, transferred from another office, the Drawing Officer shall make note of the particulars of the policy in the register. The name of the Office from which the subscriber has been transferred shall invariably be noted in the remarks column. Wherever a subscriber is transferred to another office or his policy is discharged, his name shall be scored out from the register giving necessary remarks regarding discharge of policy or indicating the office to which the insurant has been transferred as the c- may be.

2. After the preparation of the monthly bill but before its encashment the recoveries shown in the bills on account of Postal Life Insurance shall be checked up with the register to see that the recovery has been made from all the subscribers and the correct amount has been recovered. This check will discover the cases, of omissions to make recovery as, well, as cases of noting of Postal Life Insurance recoveries In a wrong column of the pay bill. The amounts of the recovery shown ill the bills shall be posted in the monthly column ill the register with proper reference to the bills or the vouchers, reason for short, excess or non-recovery being briefly noted in the remarks column. Extracts of this register shall then be made out in the schedules. The schedule shall be attached to the relevant bills in support of the recoveries.
3. While taking extracts it should be seen that the names of those insurants from whom recoveries were made in the previous months but no recoveries have been made during the current month either on account of transfer or discharge of that policy or on account of leave salary being not drawn or the official being on leave without pay, shall be included in the current month's schedule with necessary remarks noted against their names. Similarly, the remark "New Policy" or "transferred from ________________ Office" .shall be given in the schedule against the names of the Insurants

 : :entered for the first time In current month. Reasons for short or excess recovery shall be noted briefly In the remarks column. In short, schedule of Postal Life Insurance recoveries to be attached to the bills, shall be a record not only of those from whom the recovery has actually been effected but also of those from whom recovery was being effected previously but has not now been effected.

 : :In case of double recoveries or late recoveries, the reasons for late drawal of pay or pension together with an inclination of the month of pay or pension from which premium has been recovered, shall be recorded In the remarks column. this information is absolutely necessary determine the liability of the insurant to pay fine or Interest and the currency of the policy.

 : :4. Though each policy of the insurant shall be entered separately in the register and the schedule, the total amount recoverable monthly from each policy-holder .on account of all policies shall be shown in the register by bracketing all the policies. This will serve as a guide for preparation of monthly bills where recoveries in respect of each policy cannot be shown separately. This total in the register shall be kept corrected up-to-date on additions of new policies and exit of old ones.

 : :The rules in this Chapter contain general instructions which should be followed by Government servants in regard to admission to a Provident Fund, nominations of subscribers, sanctions to temporary withdrawals from Fund accounts as well as such other matters with which the Executive authorities are primarily concerned.


 : :405. No one should ordinarily subscribe to a Provident Fund for the first time without having his account number assigned by the Accountant-General.

 : :406. Any person desiring admission to a Provident Fund should submit his application (in duplicate) together with a nomination in the prescribed form duly filled in to the Accountant-General for assignment of an account number. Such applications and nominations should be forwarded to the Accountant-General through their heads of offices. One copy of the application form will be returned after the account number has been assigned to the subscriber by the Accountant-General.
 : :407. Absence of any nomination or irregular nomination causes great difficulty and delay in closing the fund account of a deceased subscriber and consequent delay in the payment of the claim. It is, therefore, of utmost necessity in the interest of subscribers to submit the nomination to the Accountant-General as expeditiously as possible an~ to see that the nominations are made in accordance with the rules of the Fund as they may stand amended or altered from time to time.

 : :408. If a subscriber wishes to revise his existing nomination, he shall submit a. revised nomination in the prescribed form to the Accountant-General, who, on receipt of the revised nomination, will return the superseded one to the subscriber duly cancelled.


 : :409. Temporary advances may be granted to subscribers to Provident Funds by the authority defined in the rules of the Provident Funds for such purposes as are admissible under the relevant rules of the Fund.

 : :410. The following instructions should be borne in mind in according sanction to the grant of temporary advances :-

    (i) That the rules of the Provident Fund concerned permit the grant of such advances.
    (ii) That the purpose for which the advance is sanctioned is specifically stated in the order of sanction or communicated confidentially to the Accountant-General when such purpose is confidential.
    (iii) In the case of Contributory Provident Fund it should be seen that the advance is covered by the subscribers' own contributions with interest thereon. No portion of the Government contributions or interest thereon can be drawn.
    (iv) That the repayment of the advance is sanctioned in such number of equal monthly instalments as are prescribed in the rules of the Fund.
    (v) That the amount of the advance and that of the monthly refund instalments are fixed in whole rupees. .
    (vi) That the order sanctioning the advance provides for the payment of interest leviable under the rules of the Fund.


 : :411. Withdrawals from the Provident Fund Accounts for payment of insurance premia under the relevant rules of the Fund are made in the following way:-

 : :Any Government servant, desiring to withdraw money from his Provident Fund Accounts or the purpose of financing policies either on his own behalf or on behalf of a Government servant, should first submit the particulars of the Policies to the Accountant-General for scrutiny. If the policies proposed or existing are found to be acceptable, orders authorising the Withdrawals will be issued by the. Accountant-General. These orders cover withdrawal for the payment of the first premium as well as all subsequent withdrawals for the payments of future premia after the required intervals.

 : :In the case of the Contributory Provident Fund, however, specific authority from the Accountant-General is required for each subsequent withdrawal also except in such cases as may be specially permitted by the Accountant-General.

 : :412. Within 3 months (or such other period as may .be fixed by the Accountant- Genera.! in a particular case) from the date of withdrawal of the amount to pay the first premium of a policy, the subscriber should send the policy to the Accountant-General for safe custody with or without assignment as prescribed in the rules of the Fund.

 : :Note. - In the case of I.C.S Provident Fund, the policies financed out of the said Fund are neither required to be hypothecated to Government nor deposited with the Accounts Officer.


 : :413. The following procedure, which has been prescribed by the Auditor- General, should be observed in the scrutiny of premium receipts in support of withdrawals from Provident Fund Deposits for payment of insurance premia :-

    (1) The premia receipts of erstwhile non-gazetted establishment need not be sent to the Accountant-General, but should be scrutinised by the head of office and a certificate in the following form furnished to the Accountant-General in July each year in respect of the financial year ended 31st March:-

     : :"Certified that (i) the life insurance policies of erstwhile non-gazetted subscribers serving in my office, taken out under the operation of the General Provident Fund (West Bengal Services) /Contributory Provident Fund (West Bengal) Rules have been forwarded to the Accountant-General except the policies of subscribers of account Nos. ________. (ii) Premia on policies of erstwhile non-gazetted subscribers assigned to the Governor of West Bengal have been paid to the Insurance Companies in proof of which receipts from the companies have been duly produced to me for scrutiny and necessary endorsements have been made on the receipts to the effect that no abatement of Indian Income Tax is admissible thereon.

    (2) In the case of erstwhile non-gazetted subscribers temporary transferred to the audit control of another Accounts Officer, similar certificates should be called for from the heads of offices to which they have been transferred and furnished to the Accountant-General.

    (3) Premia receipts of erstwhile gazetted Government servants should, however, be sent to the Accountant-General for necessary scrutiny.

    (4) As soon as a subscriber is promoted to a post equivalent to erstwhile gazetted rank, whether temporarily or permanently, and draws his premium from the Fund account a special intimation should be sent to the Accountant-General.
    (5) If there be no case of premium payment during the whole year, a nil certificate should be furnished.

 : :414. With a view to ensure proper scrutiny of premium receipts and submission of the certificate prescribed in rule 413, each head of office should maintain register in the following form in which a separate page should be allotted to each subscriber :-

Premium Receipt Register

The policies of the erstwhile non-gazetted Government servants which are financed out of Provident Fund Deposits should be entered in this register through which the regular payment of premium to the Insurance Company watched and steps taken towards obtaining the wanting receipts. The premium receipts should be scrutinised with reference to relevant entries in the register, and after necessary entries have been made in column 7 therein, the premium receipts should be returned to the subscribers with the following endoresment :-

No abatement of Indian Income-tax is admissible.


415. If a subscriber to a Provident Fund desires to pay his monthly premium on a Postal Insurance Policy out of his Provident Fund subscription, the Accounts Officer shall make the necessary adjustment through the pay bill. When the monthly premium on the Postal Insurance Policy is not wholly covered by the amount of his monthly subscription to the, Fund, the balance of the premium shall at the request of the subscriber be adjusted monthly by the Accounts Officer against the subscriber's accumulations in the Fund through the pay bill provided & certificate is recorded on the bill to the effect that the balance at his credit covers the sum to be adjusted in the bill-see rules 416 to 418.

416. The procedure to be adopted in the preparation of pay bill and Fund schedules in oases where Postal Insurance Policies of Government servants are financed from Provident Fund Accounts is indicated below-

    (i) If the subscription to the Fund be more than the amount of monthly premium-


    Say, Fund subscription 50 and
    Postal Insurance premium. .40
    Column 10 of the Establishment pay bill (T. R. Form No.26)
    should show-
    Rs. 50 asmonthly subscription, and
    Rs. 40 as deduction on account of Postal Insurance premium.
    Re. 10 net amount to be credited to the Fund.

    (ii) If the subscription to the Fund be less than the monthly premium- 1)11

    Say, Fund Subscription 30 and
    Deduction on account of Postal Insurance premium 45
    Rs. 50 as monthly subscription, and
    Rs. 40 as deduction on account of Postal Insurance premium. -
    Re. 10 net amount to be credited to the Fund.

    (iii) Where the net amount to be thus credited or debited to the Fund includes a fraction of a rupee the fraction should be rounded to the nearest higher or lower rupee according as the broken portion does or does not exceed 50 Paise.

417. In the pay bills of self-drawing officers and in the schedules attached thereto, similar information as above (vide rule 416) should be given.

418. The procedure laid down in rule 416 should also be followed in the case of subscribers to the Contributory Provident Fund subject to the further condition that the resultant credits or debits to the Fund should be rounded off to the nearest rupee as shown below-

    (i) If the monthly subscription is Rs. 10 and the Postal Insurance premium is Rs. 5-69 the following entries should be made in the pay bin :-

    Rs. p
    9 69 Deduction on account of monthly subscription.
    Less 5 69 Postal Insurance premium.

    4 0 Net subscription to be credited to Contributory Provident Fund.

    (ii) If the amount of premium payable is more than the monthly Subscription the figures in the bill will be as follows :- .

    Rs. p.
    10 19 Deduction on account of monthly subscription.
    Less 12 19 Postal Insurance premium.
    -2 0 0 Net amount to be debited to Contributory Provident Fund.

Note - The procedure outlined above for the Contributory Provident Fund should be adopted in the case of subscribers to the General Provident Fund also.

419. The amount which accumulates to the credit of a subscriber will become his absohlte property and will be refunded to him on the happing of any of the following contingencies :-

    (a) When he quits the service ;
    (b) When he submits an application for final withdrawal while on leave preparatory to retirement or while on leave he has been permitted to retire or has been declared by competent medical authority to be unfit for further service.

In the event of death of a subscriber before the amount standing to his credit has: become payable or where such amount having become payable has not been paid, the Fund money of a subscriber will be refunded to his nominee or disposed of in the manner laid down in the rules of the Provident Fund concerned.


420. The death, retirement, resignation, etc., of all Government servants, who were subscribers to Provident Funds, should be reported to the Accountant- General by the heads of departments or offices, as the case may be, as soon as the event occurs (see also rule 421). When, however, a self-drawing officer who was a subscriber to Provident Fund, quits the service of Government, he should apply direct to the Accountant-General and furnish the information required under rule 421 for the refund of his fund money.


421. As soon as the death, retirement, etc., of a Government servant, occurs, the head of the office or department, as the case may be, should furnish the following particulars to the Accountant-General for the final closure of the subscriber's fund account :-

    (i) Name of the subscriber with designation.
    (ii) Account number of the subscriber.
    (iii) The actual date (forenoon or afternoon) of retirement, resignation, death, etc.
    Note.-In the case of resignation it should be stated if the resignation has been accepted by the competent authority. (iv) Full particulars of any temporary advance drawn during the 12 months preceding the date on which the Fund money becomes payable.
    Note. - Certificate required under the rule may be given by the Principal District Officer in the Department and the authorities mentioned in Appendix 16.
    (v) A certificate by the head of the office stating whether any withdrawal from the fund as made by the subscriber during the 12 months preceding the date on which the Fund money becomes payable, for payment of insurance premia and if so full particulars of the same.
    (vi) Amount of !the last Fund deduction with the number and date of the treasury I voucher in which the same was deducted.
    (vii) In the ca~ of subscribers to the Contributory Provident Fund an additional certificate should be given stating what amount has been ordered by Government to be deducted in the case of-

    (viii) Name of the treasury or sub-treasury at which the payment is desired.


422. In the case of retired Government servants who are self drawing officers the final payment of Fund money may be drawn from any treasury whether within or outside the State of West Bengal. Should such a retired Government servant desire payment from a treasury outside the State, he should furnish the Accountant-General with his specimen signature in duplicate attested by two or more persons of respectability in the town, village or pargana in which the retired Government servant resides.

423. In respect of non-gazetted Government servants the final payment or Fund money should be made by the head of the office where the subscriber last served, except in the case of the Police Department, where payment may be made by the Superintendent of Police in other districts within the State.

Note. - Final payment may also be made by a sub-treasury and also by cheque / draft where possible.


424. An authority for payment of Fund money will remain current for 3 months from the date of its issue, and will be revalidated by the Accountant-General on the requisition of the Disbursing Officer after the authority memorandum previously, issued has been returned both by the Disbursing Officer and the Treasury Officer/ Sub-Treasury Officer/Pay & Accounts Officer, Calcutta P. A. O., with a certificate of non-payment.

Chapter 12.-Local Funds

425. The expression Local Funds has been defined in S. R. 439 of the Treasury Rules, West Bengal.

428. The procedure for paying moneys appertaining to local fund into Bank or Treasuries as well as the rules for the withdrawal of such moneys are laid down in S. R.'s 358, 373 and 440 to 443 of the Treasury Rules, West Bengal.

427. Service stamps may not be used by local fund officers or any Government officer acting in a capacity connected with a local fund such as President or Secretary of a Local Fund Committee but service lapels may be used on the correspondence of a public officer acting as such, even though the correspondence may relate to the affairs of a local fund.

Note. - Telegraphic messages, the charges for which are to be borne by local fund, should be classed as "Private" and not as, 'State'.
428. Unless any of the following arrangements have been authorised by the Government, a local fund is required to pay in advance the estimated amount of charges to be insured or cost of services rendered by Government on account of the fund:-

    (a) Payments as made by Government may be charged to the balances of the deposits of the local fund in Government books.
    (b) Recovery from local fund may be postponed till the time when Government has to make payment for the charges.
    (c) Payment may be made as advances from Government funds in the first instance pending recovery from the fund.