CHAPTER9
CHAPTER9
CHAPTER9
CHAPTER IX
PROVIDENT FUND ACCOUNTS
A. INTRODUCTORY
901. The responsibility for the internal check of all transactions pertaining to, and
the maintenance of the accounts of the State provident Funds to which the personnel of
the railway subscriber devolves upon the Accounts officer. Internal check in connection
with subscriptions by and withdrawals and payments from the various Funds should be
conducted with reference to the rules of the provident Fund concerned. The Accounts
Office deals with transaction of the following funds: -
The accounts of the funds should be maintained also in accordance with the rules
of the funds which prescribe the more important books and accounts to the kept and the
manner in which they should be posted. The rules of the State Railway provident funds
will be found in the Indian Railway Establishment Code. The rules of other Provident
Funds are published as separate pamphlets.
Note.- The Fund Accounts of the Statutory Audit staff will be maintained by the
Accountant General, Central Revenues, or the Accounts Officer of the
railway in accordance with paragraph 1228 of Chapter XII.
902. Head of Account.- The transaction of the State Railway Provident Fund will
pass through the debt head “ State Railway Provident Fund Contributory/Non-
Contributory” under C-Railways, under the major head “805- state Provident Funds”
under “I-small Savings Provident Funds, etc.” (See Appendix IV).
904. the credits and debits to the head "State Railway provident Fund
Contributory/Non-Contributory" comprise the following-
CREDITS
(a) Subscriptions from members.
(b) Refund{ of temporary with drawals.
(c) Half-yearly bonus (for S. R. P. F.-contributory only).
(d) Interest.
(e) Miscellaneous adjustments including transfers to and from other
Accounts
Offices.
DEBITS
(a) Temporary withdrawals.
(b) Payments to staff who have ceased to be members of the Fund.
(c) Miscellaneous adjustments.
906. The postings in the ledger accounts of payments and debit adjustment should
made from the relevant pay orders passed for payment and the adjustment vouchers
respectively. All debit entries in the ledger accounts should be attested by the Accounts
officer-in-charge of the section at the time of passing the pay order for payment. The
opening balances carried forward from the previous year's ledger should be attested by
the Section officer (Accounts) or sub-head in charge. A percentage (as may be fixed by
the Financial Adviser and Chief Accounts Officer) of the entries of opening balances
should be checked and attested by the Accounts officer-incharge.
910. Index Registers .- (1) A numerical index to the ledger in the order of
entrants should be maintained in Form A. 910. Besides this an alphabetical index by each
group or unit of accounts may be maintained to facilitate reference to the subscriber's
accounts numbers. The index Register (A. 910), whether numerical or alphabetical,
should shown the following particulars-
Note.- The Provident Fund Rules require that the Accounts officer should call upon
every subscriber to declare, in the prescribed form. The person or persons
entitled to receive the provident fund moneys due to him in the event of his
death. The declaration forms submitted by the subscribes should, on receipt
in the Accounts office be kept under lock and key in the personal custody of
the Accounts officer. When a revised declaration is received from a
subscriber, the old declaration form should be cancelled and returned to the
subscriber. The dates of receipt of all declaration forms should be
systematically noted in the index Register or the separate register kept for
the purpose. Reference to the declaration forms submitted to the Accounts
officer should also be quoted on top; of the individual subscriber's ledger
accounts.
912. Check Sheets.-The check sheets referred to in paragraph 903 should be kept
in two parts, one part for recording "Deposits of subscriptions and regular half yearly
bonuses" and the other for "withdrawals and deposits of other than the regular half-yearly
bonuses (e. g. Government Contribution allowed during the course of the half-year ;
retrospective Government contribution; Government contribution transferred from or to
other divisions or railways)". Both the parts should be posted from the ledger.
Form A. 912
Form A. 913
914. Register of Unposted items .-If, while posting a Provident Fund Journal, a
ledger account cannot be traced, the relevant recovery in the Provident fund journal
should be posted in a "Register of unposted Items" (Form A. 914). Every attempt should
be made to locate the ledger account and to post the item in the proper ledger before the
monthly accounts are reconciled so that no unposted item is left in this register at the end
of each month. See also paragraph 915.
Form A. 914
Rs.
Form A. 915
916. Reconciliation with General Books.-After the postings for a month in the
ledger accounts are complete, the check sheets (A. 912) should be posted from the ledger
accounts and totalled. The register in Form A. 913 will show the amounts debited and
credited during the month to the 'State Railway Provident Fund Contributory/Non-
Contributory" by compartments or sections of ledger accounts the totals in the Check
Sheets (A. 9120 should be reconciled with the totals under the relevant column in the
register of debits and credits to State Railway Provident Fund Contributory/Non-
Contributory (A. 913). In making this reconciliation due allowance should be made for
inter-compartmental or intersectional transfers within the same accounts circle. The
ground totals of debits and credits of the check sheets of the entire accounts circle should
be agreed with the total debits and credits appearing in the General Books and in the
monthly accounts of the circle under the head "State Railway Provident Fund
Contributory/non-Contributory".
918. Interest. -The interest admissible under the rules on the balances a credit of
members should be worked out and credited to the respective accounts at the close of
each financial year. The interest on contributions during the year will be calculated by
taking a single month's interest on the total of the minimum balances bearing interest
between the close of the fourth day and the end of each month for a year or any shorter
period for which it may become necessary to close the account. At the end of the year this
column should be totalled up in each account. One month's interest on this total will
represent the amount to be totaled up in each account. One month's interest on this total
will represent the amount to be allowed as interest on monthly deposits. If the slab system
of computing the interest is to be allowed as interest on monthly deposits. If the slab
system of computing the interest is to be applied. The interest should be calculated at the
appropriate rate on the average monthly balance for the year in the individual subscriber's
account as explained below-
Illustration showing the Calculation for Working out the minimum Balance
and Interest on S. R. P. F. Accounts.-Assuming the Rates of interest as 7.5% per annum
for the first Rs. 25,000/- and 7% per annum for any sums in excess of Rs. 25,000/-
Opening
Balance 24020 24000
April, 76 100 50 24170 24000
May 100 50 24320 24000
June 100 50 24470 24000
July 100 50 24620 24000
August 100 50 24770 24000
September 100 50 24920 600 24000
October 100 50 25070 24600
November 100 50 1200 24020 24600
December 100 50 24170 24600
January, 77 100 50 50 24370 24600
February 100 50 50 24570 24600
March 100 50 50 24770 600 24600
Total
÷12 294240 291600
÷12
Note.-(1) in cases where the rate of subscriptions to the Fund has been uniform
throughout the year, the total minimum balance bearing interest may be obtained by
applying the formula of Arithmetical Progression viz., [(n. s. (n plus I)] wherein 'n' is the
number of months and 's' the rate of subscription. ²
(2) When a temporary advance is granted from the State Railway Provident fund
Contributory/Noncontributory, the outstanding balance in respect of a previous
advance which is deducted therefrom and credited to the Subscriber's account
should be included under the minimum balance bearing interest for that.
.
919. Special measures should be taken towards the close of the year to make
the interest calculations .-As no interest is allowed on deposit made after the close of
the fourth day in any month, the monthly minimum balances bearing interest can be
totalled immediately after the posting for March and the interest calculated and entered in
pencil. In making repayment in March any of these calculations may if necessary be
altered (see also paragraph 449).
(i) In all cases in which the emoluments of staff are paid on the basis
of the "accommodation month" i. e. wages period not coinciding
with the calendar month), the Provident Fund recoveries made
should be credited in the accounts on the 1st of the calendar
month preceding the last day of the accommodation month.
(ii) In case where subscription to the Provident Fund have been
recovered in excess of those admissible under the rules the
amounts of subscriptions and interest thereon credited in excess
should be refunded to the subscribers and the amounts of
Government Contribution and interest there on together with
interest on subscriptions credited in excess should be written back
as soon as the irregularity comes to notice. This rule should be
applied in all cases of excess credits, whether due to wrong
fixation of pay or irregular membership. In all such cases the F.
A. & C. A. O.’s . are competent to sanction the payment of
interest to the staff under them. For the purpose of calculation of
interest on excess contributions the ledger accounts need not be
recast. Simple interest at the prescribed rates on the total
overpayments for half the period will yield fairly accurate results
and this method should be adopted.
(iii) In the case of a subscriber whose Government Contribution was
forfeited because of his quitting service before the completion of
five years and was credited to the Staff Benefit Fund under Rule
1205 (2) of the Indian Railway Establishment Code Vol. I the
forfeited Government contribution should be re-employment be
re-credited by writing back the amount from the Staff Benefit
Fund to his Provident Fund account, provided the break in service
between quitting the service and re-employment is duly condoned
and the employee is permitted to refund the Provident fund
money received by him. This adjustment will however he made
after the recoveries on account of the arrears of the Provident
Fund have been effected.
Note.- (1) When the recovery of overpayments of emoluments is
waived by the competent authority in cases of wrong
fixation of pay recovery is waived only on such portion of
overpayment as is not covered by the amount that is being
refunded from the Provident Fund.
(2) The interest allowed on amounts irregularly credited to "S. R.
P. F. C. / N. C." and subsequently written back should be
credited to "146 Indian Railways/Commercial lines Revenue
Receipts".
(3) The Interest charges on retrospective Govt. Contribution 1312
(4) RI should be debited to the working expenses of the
Railway (and not to "Transfers Railway-Railway Board").
922. The reconciliation with the General Books should be made in the
following manner.-After the postings for March are completed each account in the
ledger should be closed. The opening and closing balances of 'subscriptions" and "govt.
Contribution", the total deposits and withdrawals during the year and the interest in each
account should be copied from the ledger in the check sheet under the appropriate
columns the postings in the check sheet should them be totalled and agreed with the
figures in the General Books. Reconciliation by each compartment or section of the
ledger should be done with the help of the Register of Debits and credits to "State
Railway Provident Fund Contributory/Noncontributory" (Form A. 913).
Form A. 923
923. Distribution of Annual P. F. Statements.-It is essential that every
employee gets his annual statement of P. F. Account regularly every year. For this
purpose the F.A. & C. A. O. in consultation with the Chief Personnel Officer will work
out a detailed scheme for distribution of the statements amongst the employees along
with the disbursement of pay in accordance with a programme which should be notified
to the employees in advance.
to the Accounts Officer of the Railway or circle to which the subscriber has been
transferred. On receipt of the advice of transfer the latter Accounts Officer should issue a
transfer certificate against the former for acceptance and return. In cases of temporary
transfers where the period of transfer is likely to exceed on year, the Provident Fund
Accounts may be transferred to the Accounts Officer of the Railway of office to which
the subscriber has been transferred. In other cases the balances may continue to be kept
by the parent Railway or Office of the Railway servant concerned.
Note- When a subscriber quits the service or dies while in service, interest on the amount
standing at his credit in the Fund accrues up to the date of tender of payment or up
to the end of the sixth month after the month in which the subscriber quits the
service or dies, whichever is earlier.
(2) The Accounts Officer, shall, subject to the provisions of Rules 1339 and 1340
of the Indian Railway Establishment Code, Volume I, make prompt payment of that
portion of the amount is the Fund in regard to which there is no dispute or doubt, the
balance being adjusted as soon after as may be possible. (3) If the person to whom any
amount is to be paid under the rules of the Provident Fund is a minor or lunatic for whose
estate a guardian under the Guardians and Wards Act, 1890 (VIII of 1890) or a manager
under the Indian Lunacy Act, 1912 (IV of 1912), as the case may be, has been appointed,
the payment shall be made to such guardian or manager and if no such guardian or
manager has been appointed, the payment shall be made to the person authorized by law
to receive payment on behalf of the minor or lunatic. In cases where no natural guardian
of minor or minors exists, the payment of the share of each minor, after deduction of
Government dues, etc. of the Provident Fund money (including special contribution to
Provident Fund) to the extent of Rs. 5,000 (or the first Rs. 5,000 where the amount
payable exceeds Rs. 5,0000 may be made to the person considered fit by the Controlling
Officer to receive payment on behalf of the minor or minors without requiring him/her to
produce a guardianship certificate provided he/she executes a bond signed by two sureties
agreeing to indemnify the railway against any subsequent claims which might arise. The
person claiming payment on behalf of the minor or minors should also be required to
produce an affidavit that he/she is in charge of the property of the minor or minors and is
looking after it or that if the minor or minors has/have no property other than the
Provident Fund money the minor or minors is/are in his/her custody and care. The
balance is excess of Rs. 5,000 if any, would be payable in accordance with the normal
rules, i. e., on production of certificate of guardianship.
Note.- The power of the controlling officer under this rule may be exercised by a District
officer or an Assistant officer in independent charge of a district.
926. When an account is closed, it should be removed from the Provident Fund
ledger to a separate list called the list of Closed Accounts (Form A. 926). The balance on
such accounts closed during the year should not be removed from the books of the
Railway Department, but should in accounts for march, be transferred to "Deposit". Any
item so transferred, not exceeding unclaimed by the 31st March of the third succeeding
year, will be credited to revenue. The list of "Closed Accounts" should be consulted when
applications for refund are received by the Accounts Officer and the refund should be
noted in the list to prevent a double payment.
Form A. 926
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