Government clarifies regarding payment of GPF funds of deceased government employees

According to a report by The Economic Times, the government has made an important clarification regarding the payment of remaining funds of deceased employees under the General Provident Fund (GPF) scheme for Central Government employees. An Office Memorandum (OM) was issued by the Ministry of Personnel, Public Grievances and Pensions on 29 October, 2026.

The government has primarily focused on two situations in these guidelines. First, when the employee's death occurs before the GPF amount becomes payable, and the second situation where the amount is payable at the time of the employee's death but the payment is pending. These rules apply only to employees covered under the Old Pension Scheme (OPS). This GPF facility is not available for employees under the National Pension System (NPS) and Unified Pension System (UPS).

If the deceased employee has appointed a family member as a nominee, only that nominee will receive the GPF amount. If there is more than one nominee, the amount will be distributed according to the proportion specified in the nomination. If there is no valid nominee or if the nomination is only for a certain part of the GPF, the remaining amount will be given to the eligible family members in equal shares. The government has clarified that even if the nominee is a person outside the family, priority will be given to the family members. According to the OM, a nomination made to a person outside the family does not prejudice the rights of the family members.

This order also provides a list of family members who are not eligible to receive the GPF amount. This list includes adult sons, adult sons of a deceased son, married daughters whose husbands are alive, and married daughters of a deceased son whose husbands are alive. Additionally, any other members of the family who fall under this category are also excluded as per the rules. However, the widow of a deceased son and her children may receive a share of the GPF. They will receive the same share that the deceased son would have been entitled to, had he been alive and exempted from the exclusion rules for adult sons.

If an employee has appointed someone other than family members as a nominee and the employee has no family, that nominee will receive the amount according to the proportion specified in the nomination. The responsibility for verifying GPF claims will lie with the Head of Office or the Accounts Officer. They shall have to verify the employee's account and service records, check whether the nomination is valid, and determine the eligible family members and their shares before making the payment. All ministries and departments have been instructed to convey this order to their respective officers.

The General Provident Fund (GPF) was a retirement scheme for government employees, considered part of the framework of the Old Pension Scheme.