Punjab Municipal Corporation Employees Pension
and General Provident Fund Rules, 1994
Punjab Municipal Corp.Empl.Pension &Gen. Prov. Fund Rules,1994
Published vide Punjab Govt. Notification No. G.S.R. 43/P.A.42/76/Ss. 71
and 397/94, the 28th July, 1994
9 Notification
No. G.S.R. 43/P.A.42/76/Ss. 71 and 397/94. dated 28 July 1994 - In exercise
of the powers conferred by Section 71 read with Section 397 of the Punjab Mu-
nicipal Corporation Act, 1976 (Punjab Act 42 of 1976) and all other powers
enabling him in this behalf, the Governor of Punjab is pleased to make the follow-
ing rules to regulate the payment of pension and general provident fund to the
employees of the Municipal Corporations, namely :-
Rule 1
1. Short title and commencement and application. - (1) These rules may be
called the Punjab Municipal Corporation Employees Pension and General Provi-
dent Fund Rules, 1994
(2) They shall be deemed to have come into force on and with effect from the
first day of April, 1990 in the case of employees who are members of the provin-
cialised Service of a Corporation, and in the case of employees who are members
of a non-provincialised Service of a Corporation, they shall come into force from
such date, as the concerned Corporation may, determine, by a resolution passed
in this behalf.
(3) They shall apply to the employees of the Corporations, -
(i) who are appointed on or after the first day of April, 1990 on whole time
regular basis; and
(ii) who were working immediately, before the first day of April, 1990 on
whole time regular basis and opt for these rules :
Provided that the employees who were working immediately before the first
day of April, 1990 and who retired during the period between the first day
of April, 1990 and the date of publication of these rules in the Official Ga-
zette, shall have the option to opt for these rules within a period of four
months from the date of publication of these rules, subject to the condition
that they shall have to refund the Corporation’s contribution towards their
Contributory Provident Fund including interest thereon received by them
together with simple interest on the whole amount at the rate of ten per cent
per annum from the date of withdrawal to the date of repayment.
(4) They shall not apply to the employees, who -
(a) opt out of these rules;
(b) are members of All India Service or Punjab Civil Service;
(c) are paid out of contingencies;
(d) are work-charged employees;
(e) are employed after superannuation;
2 Punjab Municipal Corp.Empl.Pension &Gen. Prov. Fund Rules,1994, Rule 2
(f) are employed on contract basis, except when the contract provides other-
wise; and
(g) are specifically excluded wholly or partly from the operation of these rules.
Rule 2
2. Definitions. - In these rules, unless there is anything repugnant in the subject
or context, -
(a) "Act" means the Punjab Municipal Corporation Act, 1976;
(b) "Appendix" means an Appendix appended to these rules;
(c) "Competent Authority" means the authority specified as such in Appendix
‘A’ and includes any other officer to whom the competent authority may
delegate its powers under these rules;
[(cc) "Commissioner" means the Commissioner of the Municipal Corpora-
tion.]1
(d) "Corporation" means a Corporation constituted under the Act to be known
as the Municipal Corporation;
(e) "Corporation Fund" means the fund constituted under Section 76 of the
Act;
(f) "Director" means the Director, Local Government, Punjab;
(g) "Examiner" means Examiner, Local Fund Accounts, Punjab, and includes
any other officer authorised by him for conducting audit of accounts of a
Corporation;
(h) "Fund" means the fund established under rule 4 of these rules;
(i) "Government" Means the Government of Punjab in the Department of Lo-
cal Government, Housing and Urban Development;
(j) "pension" includes family pension and its commuted value;
(k) "qualifying service" means the service rendered under a Corporation for
which an employee is paid from the Corporation fund and shall include any
service rendered under the Government of Punjab, any Improvement
Trust, a Committee or any other Public Sector Undertaking immediately
before joining the Service;
(l) "Service" means the service rendered under the control of a Corporation;
(m) "Secretary’ means Secretary Local Government, Punjab.
Rule 3
3. Exercise of option. - (1) The option under clause (ii) of sub-rule (3) of Rule
1 to elect to be governed by these rules, shall be exercised in the Form appended
to these rules so as to reach the competent authority within a period of four months
from the date of publication of these rules in the Official Gazette :
Provided that, -
(a) in the case of an employee who on the date of publication of these rules
1. Inserted by Punjab Notification No. G.S.R.22/P.A.42/1976/Ss. 71 and 397/Amd.(3)/2007 dated
24.7.2007.
Punjab Municipal Corp.Empl.Pension &Gen. Prov. Fund Rules,1994, Rule 4 3
was on leave, the option shall be exercised within a period of four
months from the date of joining his duty after returning from leave;
(b) where an employee is under suspension on that date, the option shall
be exercised within a period of four months from the date he joins his
duty; and
(e) in case of an employee, who dies without exercising his option within
the stipulated period, he shall be deemed to have opted for these rules;
(2) The employees, who opt for these rules, shall cease to avail the benefit of
Contributory Provident Fund and the employees who opt out of these rules, shall
continue to avail the benefit of Contributory Provident Fund.
Rule 4
4. Establishment of Fund. - (1) For the purpose of payment of pension, there
shall be established a Fund to be known as Pension Fund (hereinafter referred to
as the Fund).
[(2) The fund for the employees, who are members of the provincialised and
non-provincialised service, shall be established by the Commissioner.]1
Rule 5
5. Transfer of amount to the Fund. - (1) The share of money contributed by
the Corporation along with interest accrued thereon standing in the Contributory
Provident Fund account to the credit of an employee of a Corporation, who opts
for these rules or who is governed by these rules, shall stand transferred to the
Fund to the extent it was contributed by the Corporation during the period of serv-
ice of the employee alongwith any loss caused to the contribution either by the
Corporation or by the employee through withdrawal during the tenure of service
of the employee or due to any other reason which shall be made good by the Cor-
poration or the employee, as the case may be, by paying the amount alongwith
interest due for that period to the Fund.
(2) The Corporation shall make monthly contribution towards the Fund at the
rate of [twenty per cent of the basic pay plus dearness pay]2 of the employee. The
rate of monthly contribution shall be subject to any change which may be made
by the Government from time to time.
(3) The amount of the Fund shall be kept in any branch of the State Bank of In-
dia or the State Bank of Patiala or the Punjab State Co-operative Bank and where
there is no branch of either of these banks, it may be kept with any other Scheduled
Bank.
Rule 6
6. Operation of Fund. - [(1) The fund for the employees, who are members of
the provincialised and non-provincialised service, shall be kept and administered
by the concerned Commissioner.]3
(2) The monthly contribution as specified in sub-rule (2) of rule 5, shall be
1. Substituted by Punjab Notification No. G.S.R.22/P.A.42/1976/Ss. 71 and 397/Amd.(3)/2007 dated
27.7.2007.
2. Substituted for "ten per cent of the basic pay" by Punjab Notification No. G.S.R. 46/P.A./45/1976/Ss. 71
and 397/Amd.(1)/2006. dated 17.10.2006.
3. Substituted by Punjab Notification No. G.S.R.22/P.A.42/1976/Ss. 71 and 397/Amd.(3)/2007 dated
27.7.2007.
4 Punjab Municipal Corp.Empl.Pension &Gen. Prov. Fund Rules,1994, Rule 7
drawn out of the Corporation Fund and credited into the Fund through a bank draft
by the Drawing and Disbursing Officer of the Corporation not later than the sev-
enth day of the month following the month to which these contributions relate and
in the event of any default in making contribution within the stipulated period, the
defaulting Corporation shall pay interest at the rate of eighteen per cent per annum
for the period of default on the amount so defaulted.
(3) All payments to be made to the employees under these rules shall be paid
through a bank, as specified in sub-rule (3) of Rule 5.
Rule 7
7. Maintenance of Accounts of Fund. - (1) The accounts of the Fund shall be
maintained by the authorities specified in Appendix ‘A’ and the bank through
which pension is disbursed, may also be required to keep accounts as per guide-
lines and instructions issued from time to time in this behalf by the Government.
(2) The Government may issue directions from time to time for maintaining the
Fund and for investigating the amount of Fund in Government securities so as to
earn maximum interest.
Rule 8
8. General Provisions relating to grant of pension. - (1) For the purpose of
grant of pension to the employees, the rules relating to pension as contained in the
Punjab Civil Services Rules, Volume II, shall apply mutatis mutandis to the em-
ployees of the Corporations also and for that purpose the terms and expressions
not otherwise defined in these rules, shall have the same meaning as assigned to
them in the Punjab Civil Services Rules, Volume I, Part I.
(2) After completion of the pension papers of the retiring employees in the form
and manner specified in the Punjab Civil Services Rules, Volume II as amended
from time to time, the Executive Officer of the Corporation shall send the same
to the Examiner, for verification of qualifying service and emoluments for the
purpose of grant of pension.
(3) The Examiner, after necessary verification shall send the pension papers to
the concerned sanctioning authority as shown in Appendix ‘A’ for sanction of
pension.
(4) While sanctioning pension, the sanctioning authority shall ensure that the
contribution of the employees for the period reckoned for pension, has been duly
credited to the Fund.
Rule 9
9. Payment of pension. - (1) The competent authority shall issue pension pay-
ment order to the pensioner in the form and manner as specified in the Punjab
Civil Services Rules, Volume II with a copy thereof to the bank as specified in
sub-rule (3) of Rule 5 for payment of pension to the pensioner every month regu-
larly.
(2) While making payment of pension, the competent authority shall be guided
by the Punjab Treasury Rules, which shall apply mutatis mutandis to the pension-
ers.
Rule 10
10. Conversion of amount to the General Provident Fund. - (1) From the
date of the commencement of these rules, the subscription made by the employees
Punjab Municipal Corp.Empl.Pension &Gen. Prov. Fund Rules,1994, Rule 11 5
to the Contributory Provident Fund alongwith interest accrued thereon, shall
stand converted into the General Provident Fund.
(2) Subject to the provisions of the Act and the rules framed thereunder, the
rules contained in Chapter XIII of the Punjab Civil Services Rules, Volume II,
shall apply mutatis mutandis to the employees of the Corporations.
(3) The General Provident Fund Account in respect of each employee, shall be
maintained at the level of each Corporation by such competent authority as is
specified in Appendix ‘B’ and in case of transfer of an employee from one Cor-
poration to another, the amount alongwith interest accrued thereon upto the date
of transfer, shall be sent to the Corporation to which the employee is transfered.
The advance and final payment from the Fund shall be sanctioned by the compe-
tent authority.
Rule 11
[11. Audit. - The audit of the fund shall be conducted by the Chartered Account-
ant engaged by the Government for the purpose, from time to time.]1
Rule 12
12. Over-riding effect. - The provisions of these rules shall have over- riding ef-
fect notwithstanding anything inconsistent therewith contained in any other rules
governing the payment of pension and General Provident Fund for the time being
in force.
Rule 13
13. Punjab Civil Services Rules also to apply. - Any matter relating to pen-
sion and General Provident Fund, which is not specifically covered under these
rules, shall be governed and regulated by the provisions of the Punjab Civil Serv-
ices Rules or any other corresponding rules on the subject.
Rule 14
14. Interpretation. - If any question arises as to the interpretation of these rules,
the Government shall decide the same and the decision so taken shall be final.
Appendix
"Appendix ‘A’2
[See rule 2(c)]
Authorities competent to sanction and to authorise payment of pension and to
maintain fund.
S.No. Categories of Employees Authority competent Authority competent
to sanction pension to maintain fund
1 Employees, who are members of The concerned The concerned
provincialised service of the Corporation Commissioner Commissioner
where appointing authority is Government.
2 Employees, who are members of The concerned The concerned
provincialised services of the Corporation Commissioner Commissioner
where appointing authority is Government.
1. Substituted by Punjab Notification No No. G.S.R. 57/P.A. 42/1976/Ss.71 and 397/Amd.(2)/2006 dated
6.12.2006.
2. Substituted by Punjab Notification No. G.S.R.22/P.A.42/1976/Ss. 71 and 397/Amd.(3)/2007 dated
27.7.2007.
6 Punjab Municipal Corp.Empl.Pension &Gen. Prov. Fund Rules,1994, Appendix
3 Employees, who are members of non- The concerned The concerned
provincialised service of the Corporation. Commissioner Commission.".
Appendix B
[See rule 10(3)]
Authorities competent to sanction and to maintain General Provident Fund
Categories of Nature of Advance Authorities competent Authorities competent
employees to sanction to maintain General
Provident Fund
All employees Non-refundable Commissioner Executive Officer of the
advance and final Concerned Corporation.
payment
Refundable Advance Executive Officer of the Executive Officer of the
concerned Corporation concerned Corporation.
Form
[See rule 3]
I___________________________, employed as_________________ in Cor-
poration ____________________________, District ______________ have
carefully gone through and understood the meaning and implications of the Pun-
jab Municipal Corporation Employees Pension and General Provident Fund
Rules, 1994, and I hereby opt for these rules/do not opt for these rules.
Date :
Place :
(Signature with designation)
Name
Designation
Name of the Corporation in
which employed
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