Section 5 in Punjab Privately Managed Recognized Affiliated Aided Colleges (Pension and Contributory Provident Fund) Rules, 2002
5. Government's, management's and employee's share towards pension.
(a)(i)Initially the entire employee/employers share of contributory provident Fund for the period counting as service qualifying for pension under para 3.1 shall be paid into this fund be each Management Committee along with interest within two months of coming into force of these rules. If in any case employee share was credited at a rate less than 10% the management Committee shall make up the shortage from the employee and credit the same to Corpus Fund. Under no circumstances shall this Corpus Fund be a part of the State Budget.(ii)The management Committee and the employee shall in future make monthly contribution at the rate of 10% each of basic pay of each employee or any other rate as may be prescribed towards pension 'Corpus Fund".(iii)the monthly contribution of the employee and the management a specified in sub-clause (ii) shall be drawn out of the management fund and sent to the Chairman of the trust for crediting into the Corpus Fund through a bank draft by the Managing Committee not later than the seventh day of the month following the month to which these contributions related.(iv)All payments to be made to the employees under these rules shall be paid through a schedule bank by the Trust.(b)In case the Management Committee fails to deposit the amount stated in sub-clause (a) above, the Director on the recommendation of the Trust shall have the right to recover the requisite amount, out of the grant admissible to the College under Grant-in-aid Scheme and deposit the same in the "Corpus Fund".5.2Establishment of Corpus Fund. - (a) There shall be established a Corpus Fund for the purposes of operation of these rules.(b)The 'Corpus Fund' as specified in sub-clause (a) above shall comprise of the following :-(i)The accumulations on account of subscription of an employee and amount of employer share of contributory. Provident Fund including 5% Government share lying with management committee. If a non-refundable advance has been drawn by any employee, the amount shall be made good along with prescribed rate of interest and shall form part of the accumulations.(ii)The amount of employee's share of contributory provided fund alongwith that of the Government share after the date of ratification of these rules.(iii)The amount of interest accrued as per the rate as notified by the Trust in tune with that of Provident fund Commissioner from time to time on the amount specified in sub-clause (i) and (ii) above, and(iv)Interest earned in Central/State Government securities in which Corpus Fund may be invested.(c)The college authorities shall send detailed statement (in duplicate) of the contributions made in Corpus Fund in respect of each employees on a monthly basis to the Chairman of the Trust.(d)In case of default or non-implementation of any provision of these rules by the Managing Committee the Director on the recommendation of the Trust shall have the right to deduct any amount that may be found due from the management, out of the amount of the grant-in-aid to the concerned college and may also remove the name of such college from the grant-in-aid list with the prior approval of the Government.(e)The pension admissible under these rules will be sanctioned by the officer authorized by the Trust. A copy of the sanction so made shall be conveyed to the concerned employees with copy to the Principal of the college.(f)The payment of pension to the employees of aided colleges shall be made out of Corpus Fund as maintained by the Trust.(g)The P.P.O. will be issued by the Trust.(h)The Trust will maintain college-wise Pension Payment Order Register showing therein complete particulars of the employee, in whose favour the Payment Orders are issued.(i)In case the Trust is not in a position to pay pension to the retirees due to non-availability of sufficient funds in the Corpus Fund then Managing Committees of all the member colleges shall make a special contribution in the Corpus Fund at the rate to be decided by the Trust at that time.(j)The Trust shall administer, control and operate the Corpus Fund.5.3Custody and Audit of Corpus Fund. - (i) The balance in the Corpus Fund shall be kept in a scheduled bank approved by the Trust by a resolution.(ii)The Trust shall ensure that surplus funds are invested only in Central/State Government securities so as to earn maximum interest.(iii)Audit of the individual accounts of employees and the Corpus Fund shall be conducted as may be prescribed.
