New Delhi, Nov. 5 -- The central government has clarified who is entitled to the General Provident Fund (GPF) balance of a deceased government employee, settling long-standing doubts over whether the money should go to nominees or to eligible family members.

In an office memorandum dated 29 October, the Ministry of Personnel, Public Grievances and Pensions set out how GPF payments work when a serving employee dies. It covers deaths both before the balance becomes payable and after it becomes payable but before the amount is released. The memorandum also defines "family" and explains Rules 2 and 5 of the General Provident Fund (Central Services) Rules, 1960. The aim is to prevent prolonged legal disputes and ensure the proceeds reach the ...