DoP&T Clarification on modalities of transfer of the NPS contribution to GPF accounts

DoP&T Clarification on modalities of transfer of the NPS contribution to GPF accounts


Government of India
Ministry of Personnel, PG and Pensions
Department of personnel & Training

North Block, New Delhi
Dated: 11th October, 2018


Subject: Clarification on modalities of transfer of the NPS
contribution to casual labourer with temporary status to their GPF

The undersigned is directed to refer to this Department’s OM
No.51016/2/90-Estt (C) dated the 10th September, 1993 vide which a scheme
for grant of temporary status to the casual employees was framed. The
scheme applied to those casual labourers who were in employment on the date
of the issue of the OM and had rendered one year of continuous service in
Central Government offices, which meant that they must have been engaged
for a period of at least 240 days (206 days in the case of offices
observing 5 days week). The scheme did not apply to Departments of Telecom
& posts and Ministry of Railways.
2. As per the scheme, after rendering three years’ continuous service after
conferment of temporary status, the casual labourers were to be treated at
par with temporary Group ‘D’ employees for the purpose of contribution to
the General Provident Fund. Further, after their regularisation, 50% of the
service rendered under temporary status was to be counted for the purpose
of retirement benefits.

3. As per para 8 of the scheme, two out of every three vacancies in Group
‘D’ cadres in respective offices where the casual labourers had been
working was to be filled up as per extant recruitment rules and in
accordance with the instructions issued by Department of Personnel and
Training from amongst casual workers with temporary status. However,
regular Group ‘D’ staff rendered surplus for any reason would have prior
claim for absorption against existing/future vacancies.
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4. Vide the O.M. No.49014/1/2004 -Estt.(C) dated the 26th April, 2004, the
above scheme was reviewed in light of introduction of New Pension Scheme in
respect of appointed to the Central Government service on or after
1.1.2004. These casual labourers with temporary Status were now to be
considered under the NPS and their underlying amount in GPF was credited to
5. The OM dated 26th April, 2004 was quashed by various benches of CAT/High
Courts who had decided that the scheme could not be modified
6. The position was reviewed in the light of the Court judgements in
consultation with the Department of Expenditure. It was then decided vide
this Department’s O.M. No. 49014/2/2014- Estt(C) dated 26.02.2016 and O.M.
No. 49014/2/2014-Estt(C) dated 28.07.2016 that the casual labourers who had
been granted temporary status under the scheme, and have completed 3 years
of continuous service after that were entitled to contribute to the General
Provident Fund. It was also decided that 50% of the service rendered under
temporary status would be counted for the purpose of retirement benefits in
respect of those casual labourers who have been regularised in terms of
para 8 of the OM dated 10.09.1993. This was applicable to all casual
labourers covered under the scheme of 1993 whether they were regularised
before or after 31.12.2003.
7. It was emphasised that the benefit of temporary status is available only
to those casual labourers who were in employment on the date of the issue
of the OM dated 10th September, 1993 and were otherwise eligible for it. No
grant of temporary status is permissible after that date. The employees
erroneously granted temporary status between 10.09.1993 and the date of
Hon’ble Supreme Court judgement in Union Of India And Anr vs Mohan Pal,
2002 (3) SCR 613, delivered on April, 2002, will however be deemed to have
covered under the scheme of 10.09.93.
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8. Subsequent to the issue of this Department’s O.M. 49014/2/2014-Esst(C)
dated 26.02.2016 and O.M. No. 49014/2/2014-Estt(C) dated 28.07.2016 several
Ministries/ Departments were seeking clarifications as regards to the
modalities of transfer of the amount lying in the NPS account to the GPF
account of these casual labourers. The matter has been examined in
consultation with D/o Pensions & Pensioners’ Welfare, D/o Financial
Services and D/o Expenditure.
9. D/o Pension and Pensioners’ Welfare have clarified/ stated that the
employees’ share or the NPS subscription with interest should be withdrawn
and deposited in the GPF accounts if these CL-TS regularized after
31.12.2003 and the Government share with interest accrued under NPS should
be deposited in Government’s account.
10. Controller General of Accounts (CGA) have furnished following
clarifications vide letter No. dt 11.03.2016 on a similar matter which are
as under:
Adjustment of Employees contribution in Accounts

:- Amount may be credited to individual’s GPF Account and the account
may he recasted permitting up-to-date interest (Authority-FR-16 &
Rule 11 of GPF Rules) 

Adjustment of Government contribution under NPS in Accounts

:- To be accounted for as (-) Dr. to object heads 70-Deduct Recoveries
under major Head 2071- Pension and other Retirement benefit-Minor Head
911- Deduct Recoveries of overpayment (GAR 35 and para 3.10 of List of
Major and Minor Heads of Accounts)


Adjustment of increased value of subscription on account of
appreciation of investment

– may be accounted for by crediting the amount to Govt. account under
M.H.0071- Contribution towards Pensions and other Retirement Benefits
800- Other Receipts (Note under the above Head in LMMHA).

11. The principle underlying the consideration of the case of CL(TS) is
that Casual labourers who were covered under the scheme of 1993 and have
been regularised in terms of the above scheme were entitled to GPF and Old
Pension scheme even if they were regularised after 31.12.2003.
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12. Furthermore, as per D/o Expenditure/CGA, if the benefits under old
pension scheme are to be allowed to a retired employee, who had contributed
towards NPS at any stage. the entire NPS accumulations i.e. employee’s
contribution + Government’s matching contribution + appreciation thereon
should be remitted into the accredited bank of the PAO concerned and the
accounting procedure will be same in this case as prescribed at par 10
13. All Ministries/Departments are requested to settle the matter explained
above. If any further clarification is needed in the matter, they should
approach CGA (Controller General of Accounts) directly, since CGA is the
accounting agency and is competent to clarify the matter.

Director (Establishment)

Source: DoPT (click to view/download)