Letter to UGC on CPF-GPF, 3.2.2014

February 3, 2014

With reference to various communications on the issue of conversion from CPF to GPF following the GOI OM No. 4/1/87-P.I.C.I. dated 01.05.1987 titled “Change Over of Employees from Contributory Provident Fund to Pension Scheme”, we wish to bring to your kind notice the following material facts:-

1. About 500 employees of the University of Delhi and its constituent colleges have been left out of the GPF-cum-Pension Scheme of the Government of India. 

2. Many of them have been erroneously continued under the CPF Scheme though they ought to have been ‘automatically’ placed under the GPF/Pension Scheme by virtue of the deeming provision of the above mentioned Office Memorandum dated 01.05.1987 (Copy enclosed). The relevant paras from the the Office Memorandum are quoted below:-

• a. Para 3.1: “All CPF beneficiaries, who were in service on 1.1.1986 and who are still in service on the date of issue of these orders will be deemed to have come over to the Pension Scheme. ”
• b. Para 3.2: “The employees of the category mentioned above will, however, have an option to continue under the CPF Scheme. if they so desire. The option will have to be exercised and conveyed to the concerned Head of Office by 30.09.1987 in the form enclosed if the employees wish to continue under the CPF Scheme. If no option is received by the Head of Office by the above date the employees will be deemed to have come over to the Pension Scheme. ”
• c. Para 4.2: “In the case of employees referred to above, who come over or are deemed to come over to the Pension Scheme, the Government’s contribution to the CPF together with the interest thereon credited to the CPF Account of the employee will be resumed by the Government. The employee’s contribution together with the interest thereon at his credit in the CPF Account will be transferred to the GPF Account to be allotted to him on his coming over to the Pension Scheme.”
• d. Para 4.3: “Action to discontinue subscriptions/contributions to CPF Account may be taken only after the last date specified for exercise of option, viz., 30.09.1987.”

3. The O.M./Notification was duly adopted by the University of Delhi. Implicitly, all  employees who did not specifically opt for CPF between 01.05.1987 and 30.09.1987 ought to have been transferred to the GPF/Pension Scheme and their pension fund ought to have been dealt with in accordance with the provisions of the above mentioned paras 4.2 and 4.3. This was not done.

4. Subsequently, the University of Delhi extended the cut-off date for employees to exercise their option. The options were given by decisions of the Executive Council between October 1987 to March 1999. 

5. In the light of the above-mentioned OM, all employees of Delhi University, who did not opt for CPF between 01.05.1987 and 30.09.1987, should have been “deemed to have come over to the Pension Scheme” irrespective of any “option” exercised by them later (See Para 3.2 of the OM, quoted above).

6. This has been subsequently upheld by the Hon’ble Supreme Court in Union of India vs. S.L. Verma, Appeal (Civil) 2723 of 2005 (decided on 28.11.2006). The judgement has held as follows: 

“… Despite the clear intent and purport of the said Office Memorandum dated 1.5.1987, the respondent Nos. 1 to 13 herein continued to be treated as if they had still been continuing under the CPF Scheme. … It may be that they had made an option to continue with the CPF Scheme at a later stage, but if by reason of the legal fiction created, they became members of the Pension Scheme, the question of their reverting to the CPF would not arise. … In terms of such legal fictions, it will bear repetition to state, the respondent nos.1 to 13 would be deemed to have switched over to the pension scheme, which a fortiori would mean that they no longer remained in the CPF scheme. ” (Copy enclosed)

7. The aggrieved employees have made repeated requests to the Delhi University to correct the anomaly and place them in the GPF/Pension Scheme. The University and other authorities have been rejecting these appeals solely because they have been misconstrued as ‘requests for granting one more option to come over to the Pension Scheme’. This perception needs to be corrected in the interest of justice.

8. For those employees, who opted for CPF between 01.05.1987 and 30.09.1987, but later opted for GPF when the University extended the cut-off date, we urge the UGC to permit them the switch. Although the UGC has taken the position that the MHRD or the UGC had never permitted Delhi University to extend the said cut-off date, it is not the fault of the employees that the options were given by the University and were exercised in good faith by them. It may be appreciated that the specific motive behind the OM of 01.05.1987 was, in fact, to bring as many employees as possible under the Pension Scheme. 

9. You perhaps also know that in several public sector units as well as in some universities employees, who had opted for CPF between 01.05.1987 and 30.09.1987, have been given the benefit of reverting back to GPF.

An objective and fair re-examination and your kind personal intervention on this issue at this stage will save hundreds of employees from the undue harassment they have facing.