No.2/1/2014-Welfare
Government of India
Ministry of Personnel Public Grievances and Pensions
(Depart of Personnel & Training

Lok Nayak Bhavan, Khan Market
New Delhi, dated October 20, 2014

To

Joint Secretary (Admn.),
All Ministries/Departments,
Government of India,
New Delhi.

Subject:-Suggestions for review of Staff Benevolent Fund – Regarding

Sir/Madam,

The undersigned is directed to say that the Central Government being the largest single employer in the country, bears the major responsibility of looking after the welfare of a large number of employees spread all over the country. This Ministry recognizing that welfare of employees is one of prime tasks of personnel management, provides and aids a large network of staff welfare programmes underlining the fact that improvement in the working and living conditions of the employees and their families, leads to efficiency and high morale amongst them. A compendium of instructions giving a brief account of such welfare programmes was brought out by this Ministry in 2001. A need is felt to update/revise the compendium.

The Staff Benevolent Fund is one of such staff welfare programmes. A copy of the extract taken out from the compendium related to this programme is sent herewith with the request that suggestions of your Ministry/Department, if any, for revision/modification of the provisions of the Staff Benevolent Fund may please be furnished for consideration of this Department by 31.10.2014.

Yours faithfully,

(N. Sriraman)
Director (Welfare)

CHAPTER-IX

STAFF BENEVOLENT FUNDS

1. Emergent and unforeseen situations, like sudden and serious illness of the Government servant, sometimes coupled with absence from duty without pay for long periods on account of such illness or his/her death in harness may leave the families of such Government servants in great financial distress. At such times benevolence in the form of immediate financial assistance must be readily available so as to enable the dependent family to tide over their genuine financial stringency. Keeping these in view, Government has provided for the setting up of Benevolent Funds. The Funds to be run at Ministries/Departments/Offices level are to “be sustained by financial assistance from the Government and contributions from employees enrolled as members.”

2. Salient Features

The main features of the Staff Benevolent Fund are as under:
(i) All regular employees of the Government are eligible to become members of the Fund on payment of required amount of subscription.
(ii) Membership of the Fund is voluntary.
(iii) Benefits of the Fund accrue to the members only.
(iv) Subscriptions are collected from the members on monthly and/or yearly basis.

3. Objects of the Benevolent Fund

The object of the Fund is to relieve financial distress amongst, and to provide financial assistance to the employees, the extent of which may be determined by the local Managing Committees of the Funds, in the following circumstances :
(i) When a Member dies while in service leaving his/her dependents in indigent circumstances;
(ii) When a memberior a dependent family member is afflicted with serious illness like TB and a nourishing diet will prove beneficial for early recovery;
(iii) When a member is on prolonged sick leave without pay;
(iv) When a member suffers from some other unforeseen misfortunes;
(v) In other deserving cases at the discretion of the Managing Committee of the Fund.

Besides, interest free loans may also be given to the members under extenuating circumstances.

4. Administration of the Funds

A Governing Body/Managing Committee, constituted locally by the Departments/Offices will administer the Benevolent Funds. The Funds should be constituted in a decentralised a manner as possible so that the authorities to administer the Funds are easily accessible to needy employees/their dependents. A Model Constitution for the Funds is annexed.

5. Grant-in-aid from the Government

The Government gives grant-in-aid of Rs. 1 per annum per sanctioned staff. For calculating the quantum of grant-in-aid total sanctioned strength of the Establishment is taken into consideration, irrespective of the members enrolled/their contributions to the Fund. Budget provision for this purpose is required to be made under the appropriate “Head of Accounts”.
(O.M. No. 2 (1) /1/78-Welfare, dated 15th March, 1978, Ministry of Home Affairs) (Annexure-XXVI)

6. Subscriptions from Members

All the members of the Benevolent Funds have to contribute a sum, monthly or yearly, being not less than the per head contribution received, from the Government as grant-in-aid. The contribution made by the member is non-refundable.

7. Model Constitution for the Benevolent Fund :

1. Name: There shall be established a Fund called “The Ministry/Department/Office of ………………………… Benevolent Fund”, hereinafter referred to as ‘Fund’.
2. Provisions of the Act: All the provisions of the Societies Registration Act XXI of 1860, as amended from time to time shall apply to the Fund.
3. Objects: The objects of the Fund shall be to relieve financial distress among the employees in the following cases/circumstances :-
   (a) where a member dies while in service leaving the deper .ents in indigent circumstances;
   (b) where a member is on prolonged sick leave without pay or on reduced pay;
   (c) where a member suffers from other unforeseen misfortunes; and
   (d) in such other cases as may be deemed fit and deserving by the Managing Committee of the Fund.
4. Sources of the Fund:
   (a) The Grant-in-aid from the Government;
   (b) Subscription from the members of the Fund; and
   (c) Other voluntary contributions or donations.

Sources of the Fund may also ue augmented by observing a “Benevolent Fund Day” once a year and collecting donations from the officers and staff of the Ministry/Departments and its attached and subordinate offices.

Note: 1. Subscriptions from the members will be collected by the Cashier of the Ministry/Department/Office by way of making deductions from the salary of the members on a written authorisation given by them.

Note: 2. Contributions once made to the Fund shall not be refunded in any case.

5. Eligibility for Membership:
   (a) The membership of the Fund shall be open to all permanent and regular/temporary central government employees.
   (b) A member of the Fund shall be a person, who having been admitted as a member in accordance with the rules governing the Fund, shall have paid his subscription and shall not have resigned. No person shall be entitled to vote or treated as a member whose subscription at the time has been in arrears for a period exceeding three months.
6. Application for Membership:
   (a) Any employee, who wishes to become a member of this Fund voluntarily, shall submit his/her application to \qquad in the Application Form for membership as prescribed in ‘Appendix A’; and
   (b) To pay the prescribed membership fee annually/half yearly/quarterly/monthly, as prescribed from time to time.
7. Cessation of Membership: A member shall cease to be a member of the Fund in the event of :
   (a) Resignation from membership of the Fund;
   (b) Ceasing to be a Government servant on account of retirement/resignation/dismissal/death etc.
   (c) Non-payment of the subscription of the Fund continuously for three months.

Note: Membership shall not be affected if the member is on long leave without pay or otherwise, provided he resumes his subscription on return to duty. Membership of the Fund shall not be affected if a member is transferred to another Ministry/Department provided he continues to pay his subscriptions regularly.

8. Beneficiaries :
   (a) The benefits of the ‘Fund’ shall be confined to only those members, who have enrolled themselves as members of the Fund for at least six months continuously and immediately prior to application for such benefits;
   (b) Members of the families consisting of widows and dependent sons, daughters and parents;
   (c) A member, who is a defaulter in making payments towards the subscription/contribution, shall not be considered eligible for sanction of loan/grant;
   (d) A member, who has already taken a loan, shall not be eligible for getting further loans from the Fund unless the amount of the loan previously taken is repaid in full by him/her;
   (e) A member shall be eligible to get further loans from the Fund after completion of one year from the date previous loan was repaid in full.
9. Assistance to Members: The quantum of relief in each case shall be determined by the Managing Committee of the Fund, namely :-
   (a) Funeral expenses: Immediate relief shall be given to the dependents on the death of the member of the Fund to meet the funeral expenses. The amount shall not exceed Rs. 1000 subject to the availability of funds.
   (b) Immediate relief shall be given to the members of the fund on the death of their dependents (spouse/sons/ daughters/parents). The amount shall not exceed Rs. 200 subject to the availability of funds.
   (c) Immediate relief not exceeding Rs. 500 in lumpsum or instalments on account of sickness of members/ their dependents (spouse/sons/daughter and parents), may be given subject to availability of funds. The amount of such grant would be admissible for the members if the dependents suffer from Cancer or T.B. and are admitted in Hospitals.
   (d) Members shall be eligible for loans from the Fund FREE OF INTEREST on account of his and his dependents’ illness subject to the production of medical certificate from the respective CGHS Dispensaries/ Authorised Doctors. The amount of such loan shall not exceed Rs. 1000 subject to availability of funds.
   (e) In cases of prolonged sickness involving leave without pay subject to the prescribed maximum amounts.
10. Administration to vest in the Managing Committee of the Fund :
    (a) The Administration of the Fund shall vest in a Managing Committee, which shall carry out the objects of the Fund and generally exercise all powers in furtherance thereof. The following shall be the members of the Managing Committee:-
    (i) Deputy Secretary or an Officer of equivalent grade (Incharge of Administration.) CHAIRMAN
    (ii) Under Secretary/Group ‘A’ Officer connected with Welfare/Administration. SECRETARY
    (iii) Under Secretary/Group ‘A’ Officer connected with Cash and Accounts. TREASURER
    (iv) Five members of the staff side elected by the General Body.
    (b) The Managing Committee shall have the power to co-opt any member from among the members of the respective Staff Councils, who are the members of the Fund to fill any interim vacancy that may occur due to death, retirement, resignation or transfer, etc., of any member;
    (c) Quorum: Five members of the Managing Committee shall form a quorum at any meeting to consider the applications for loans/grants etc. to the members and/or their dependents.
    (d) The Managing Committee shall have power to frame/amend By-laws and Rules of Procedure and Conduct of Business relating to the Benevolent Fund in consultation with the Chief Welfare Officer in the Ministry of Personnel, Public Grievances and Pensions.
11. General Body : The meeting of the General Body of the members of the Fund shall be called once a year immediately after the close of each financial year. In the meeting of the General Body, the following issues shall be placed for discussions and approval :-
    (a) Statement of accounts of the previous respective financial year, duly audited by the Internal Auditor. The body shall scrutinise and give advice, wherever necessary.
    (b) Time-schedule and other process of holding of elections. Nominations from the Staff (members of the Fund) to the Managing Committee for the ensuing financial year.
    (c) To make amendments in the Benevolent Fund Rules.
    (d) The quorum for a General Body meeting shall be 1 / 4 th of the members on the rolls and eligible to vote on the date of meeting. In case, the quorum is not complete, the meeting shall be adjourned and no quorum shall be required for the adjourned meeting.

12. Application for Assistance :

(a) Application for assistance from the members shall be received by the Secretary of the Fund. These applications shall be considered by the Managing Committee in its meetings held periodically. The Application shall be supported by the elected members from the Staff side.
(b) In case of Emergency, the Chairman of the Committee shall have powers to sanction amounts to the extent and for the purpose mentioned here in above, which shall be ractified by the Managing Committee at its next meeting.
13.Bankers : (a) The Bankers of the Fund shall be State Bank of India, located nearby. In case, the State Bank of India is not located nearby, any Nationalised Bank, located nearby, shall be the Banker with whom the account of the Fund shall be opened.
(b)The Bank Account shall be operated jointly by the Treasurer and the Secretary of the Fund. The Treasurer shall be responsible for all money received and spent by him on behalf of the Fund and also for the maintenance of accounts.

14. Audit of Accounts : The accounts of the Fund shall be audited by an Internal Auditor to be appointed by the Managing Committee in the beginning of the year in ‘consultation with the Administration Wing of the Office.’
15. Indemnity Against Action etc. : All members of the Managing Committee shall stand absolved from any liability in respect of actions, costs and all other claims made against them for any thing done or any action taken by them on behalf of the ‘Fund’ and in furtherance of the objects of the ‘Fund.’

ANNEXURE-XXVI

MOST IMMEDIATE

No. 2 (1)/1//78-Welfare
Government of India/Bharat Sarkar
Ministry of Home Affairs/Grih Mantralaya
Department of Personnel & Administrative Reforms
(Karmik Aur Prashasanik Sudhar Vibhag)

New Delhi, the 15th March, 1978

OFFICE MEMORANDUM

Subject: Benevolent Funds in Central Government Offices-Government contribution to- Increase in-
The undersigned is directed to invite the attention of the Ministries/Departments, etc. to the Ministry of Home Affairs Office Memorandum No, 24 (1) /62-Welfare dated 10-1-1966, according to which Government grant to Benevolent Funds is admissible at the rate of Re.1/-per annum in respect of each contributing member. On a careful consideration of the matter, it has now been decided that Government grant to Benevolent Funds will now be admissible at the rate of Re. 1/- per annum per employee (i.e. based on the total sanctioned strength of the respective establishment) irrespective of the contribution from the members of the staff. The other features of the Scheme including the rate of contribution of members, etc. remain un-affected. Further, the beneficiaries of the Fund would, as before, continue to be only those members of the staff who subscribe to the fund and become its member.

2. These orders will take effect from the financial year 1978-79 (i.e. from 1-4-1978).
3. These orders issue with the concurrence of the Ministry of Finance (Department of Expenditure), vide their U.O. No. 2744-E.II (A) /77, dated the 10^{th } October, 1977.
4. These orders do not apply to any Benevolent Fund in Indian Audit and Accounts Department.

To
All Ministries/Departments of the Government of India.
No. 2 (1) /1/78-Welfare, New Delhi, the 15th March, 1978
Copy for information to the Ministry of Finance, Department of Expenditure E.II (A) Branch, with reference to their U.O. No. 2744/E.II (A) /77, dated the 10th October, 1977.

Copy to the Finance I Section. M.H.A.
Sd/-
(A.D. JOSHI)
for Under Secretary to the Govt. of India

APPLICATION FORM FOR MEMBERSHIP OF THE BENEVOLENT FUND

1. Name (in full): Shri/Smt./Kum
2. Designation:
3. Father’s/Husband’s name:
4. Date of Birth/Retirement:
5. Whether permanent or Temporary:
6. Name of the Section/

Office, where working:
I hereby declare that I have read the Model Rules of the Benevolent Fund and am desirous of becoming a member of this Fund voluntarily. I agree to pay Rs…….. monthly/annually towards the subscription of this fund. This amount may please be deducted from my pay as and when necessary.

Signature:
Dated:
Verification certificate from Administration Wing of the Department/Office
Certified that Shri/Smt./Kum son/wife/daughter
of is a regular /permanent servant in the grade of in this Ministry/Department/ Office.

Signature of the Office Incharge of Administration Wing