UNIVERSITY MONOGRAM

Contributory Provident Fund Rules-

2022

UNIVERSITY OF SCIENCE & TECHNOLOGY, XYZ,

Khyber Pakhtunkhwa (Pakistan)

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 UNIVERSITY OF SCIENCE & TECHNOLOGY, XYZ

CONTRIBUTORY PROVIDENT FUND RULES-2022

In exercise of the Powers conferred under section 28 (1) (c) read with Section 42 of
the Khyber Pakhtunkhwa, Universities (Amendment) Act,2016, the competent authority is
pleased to make the following Rules namely: -

1. SHORT TITLE COMMENCEMENT AND APPLICATION:

(i) These Rules may be called the University of Science & Technology XYZ
Employees Contributory Provident Fund Rules-2022.

(ii) Commencement: - These Rules shall come into force with effect from
01/07/2022 and shall be deemed to have been enforced for each employee,
having age less than 60 years, as may have been enrolled to the
establishment of the UST XYZ on or after 1st July 2022.

(iii) Application: - These Rules shall apply to every regular employee of UST
XYZ, whose service is non-pensionable and shall not be applied on the
University employees who have regular pensionable service prior to 1 st July
2022 or their subsequent initial appointment against the next higher scale
in the University.

2. DEFINITION:
In these Rules, the following expressions, unless there is anything repugnant in
the subject or context, shall have the meanings:

(i) “UST XYZ" means University of Science & Technology XYZ, established
under the authority of UST XYZ Act 2005 (NWFP Act NO.XIII of 2005) as
amended (NWFP Act No.V of 2006) and Khyber Pakhtunkhwa,
Universities (Amendment) Act,2016.

(ii) “Senate” means the Senate of the UST, XYZ.

(iii) “Syndicate” means the Syndicate of the UST, XYZ.

(iv) "Chairman" means the Vice Chancellor of the University of Science &
Technology XYZ or his nominee appointed on his behalf.

(v) “Secretary" means the Registrar of the UST XYZ or his nominee appointed
on his behalf.

(vi) "Treasurer" means the Treasurer of the UST XYZ or any other officer as
may be appointed on his behalf for the maintenance of the Fund.

(vii) "Employer” means the University of Science & Technology (UST) XYZ.

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 (viii) "Employee" means the regular employee of UST XYZ appointed on or after
01-07-2022, those whose service is non-pensionable

(ix) ”Fund” means Contributory Provident Fund established under these

Rules.

(x) "Contribution" means any sum credited by the UST XYZ out of its own
monies/source to the employee’s C.P. Fund account @ 12% of the basic
pay of the subscriber.

(xi) "Subscription" means the payment deducted from the subscriber's pay and
credited to his individual account in the Fund @ 10% of the basic pay of
the subscriber.

(xii) "Legal heir" means the relatives of a subscriber including wife/wives,

husband, parents, children, minor brothers, un-married sisters, widow(s)
and grandparents,

(xiii) "Family" means:

(i) Wife or wives or husband, as the case may be
(ii) Legitimate children and step children less than 21 years old
(iii) Legitimate children and step children more than 21 years if
wholly dependent upon him and;
(iv) Parents, sisters, minor brothers if residing with and wholly
dependent upon him.

(xiv) "Leave" means any kind of leave recognized by the service rules of the
UST XYZ.

(xv) "Year" means a financial year starting from 1st July till 30th June.

(xvi) Balance at credit" means the total amount to the credit of the subscriber's
account in the Fund including contribution and the profit earned thereon
through investment.

(xvii) Pay" means basic pay as on 30 th June of the preceding year and includes
special pay, personal pay, technical pay, or any other emoluments classed
as pay by the UST XYZ but it does not include any kind of allowance.

(xviii)The pronoun “He” used in relation to an employee refers to a male or

female, as the case may be.

(xix) “Investment Committee” means the University Investment Committee

constituted for investment of the University funds.

3. CONSTITUTION OF THE BORD OF TRUSTEES AND MANAGEMENT

OF FUND:

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 (3.1) The Fund will be administrated by a Board of Trustees formed with the
representatives of the employees.

(3.2) The Board of Trustees shall consists of four person’s, i.e.

(a) The Vice Chancellor (Chairman).

(b) The Registrar of the UST XYZ (Member).

(c) One representative of the employees as in rules 3.1 above

nominated by the employees of UST XYZ who is entitled to
subscribe to the Fund.

(d) The Treasurer of the UST XYZ or any other officer as may be
appointed on his behalf as "Treasurer".(Member/Secretary)

(3.3) The Fund shall be vested in the Board of Trustees and after every three years
the Board of Trustees shall be reconstituted in accordance with the provision of Statute
3.2.

(3.4) A representative of the employees shall cease to be a member of the Board of

Trustees on ceasing to be subscriber.

(3.5) If any casual vacancy arises before the expiry of the terms of office of the
Board, the vacancy shall be filled in, in-accordance with the provision of Rules 3.2
accordingly as the member who vacated office was either a representative of the
employer or of employees.(for residue period)

(3.6) The Fund shall consist of subscriptions and contributions as prescribed and the
donations received by the Board of Trustees and its accumulations thereof and the profit
earned through investments credited in respect of such subscriptions, contributions
donations, accumulations investments and securities purchased therewith, and of any
capital gain arising from the sale, exchange or transfer of capital assets of the Fund.

(3.7) The control of the Fund and its custody, management, investment, etc. shall vest
in the Board of Trustees.

(3.8) The Fund shall be kept in separate scheduled Bank and shall be maintained and
operated jointly by the Vice Chancellor and Treasurer or any member of the Board of
Trustees duly authorized by the Board.

(3.9) The Board may invest the Fund through the Investment Committee in any
approved securities, shares, and fix-time deposits in scheduled Banks etc having more
profit and security.

4. MAINTENANCE OF ACCOUNTS:

(4.1) The accounts of the Fund shall be maintained by the Treasurer in such manner as
prescribed by the Syndicate.

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(4.2) The account shall be opened in the name of “UST, XYZ CP Fund” which shall show:
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(4.2.1) Subscriber’s subscription realized under these Rules.

(4.2.2) Withdrawal allowed and made by the subscribers under these Rules.

(4.2.3) Contribution made by the employer to the account of the subscriber.

(4.2.4) Profit earned through investments provided under these Rules as

prescribed.

(4.2.5) Balance of the previous year.

(4.2.6) Grand total consisting of subscription and contribution along with profit
earned thereon.

(4.3) After 30th June of each year as soon as possible but not later than 30th September,
the Treasurer shall provide on their request to each subscriber a statement of account in
the Fund as below:

(4.3.1) The opening balances as on 1st July of the year.

(4.3.2) The total amount credited or debited during the year.

(4.3.3) Closing balance of the year.

(4.4) The Treasurer shall attach to the statement of account, a note requiring the
subscriber to inform him whether he desires to make any alteration in the nomination
made by him under these Rules.

(4.5) The Finance Section shall maintain account of the Fund and prepare a balance
sheet for each year.

(4.6) Subscriber shall satisfy himself as to the correctness of the annual statement
and errors if any would be brought to the notice of the Treasurer within two months from
the date of issue of the statement.

(4.7) The Treasurer shall, if required by the subscriber once but not more than twice in a
year, inform the subscriber of the total amount standing at his credit in the Fund at the end
of last month for which his account has been written up.

5. AUDIT:

The account of the Fund shall be audited annually by an auditor appointed by the
Board for the purpose. The Auditor’s report on the accounts shall be open to inspection by
the subscribers and the employer.

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6 COMPULSORY MEMBERSHIP OF THE FUND:

(6.1) Every employee shall become the member of the Fund after the commencement
of these Rules or those employees who recruited on or after 01-07-2022, in the UST XYZ
and shall subscribe to the Fund compulsorily except the following: -

(a) Employees paid from contingency/daily paid labourers.

(b) Temporary employees appointed for a period of one year or less.

(c) The persons who are on deputation to UST XYZ.

(d) The employees who are admitted to the General Provident Fund Scheme of the
University.
(e) The persons who are re-employed after attaining the age of superannuation.

(f) The employees of the University who have pensionable service prior to 1st July 2022
and their subsequent initial appointment to the next higher basic pay scale.

7. CONDITIONS OF SUBSCRIPTIONS:

(i) Every employee shall subscribe to the Fund when he is on duty in the UST XYZ on
CP-Fund basis.

(ii) Every employee shall be required to subscribe to the fund when he is on

deputation or temporarily transferred to other place or service not attached with the UST
XYZ.

(iii) Every subscriber shall subscribe to the Fund during the leave in or outside Pakistan
but he will not be required to subscribe during extra ordinary leave.

8. RATE OF SUBSCRIPTION:
(i). Every employee shall monthly subscribe to the Fund a sum equal to 10% of his
basic pay which shall be rounded to the nearest rupee. The subscription shall be deducted
by the employer from the monthly salary of the employee regularly. The pay of the
subscriber for the purpose of sub-rule 8(i) shall be the pay as on 30th June of the
preceding year, provided that a subscriber who was on leave the pay on the date of
proceeding on leave or his pay shall be the pay to which he was entitled on the first day
before such leave or on the first day after his return on duty.

(ii). The subscriber who was on deputation or was on transfer, his pay shall be the pay
to which he would have been entitled on return.

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(iii). If a subscriber joined the Fund for the first time on a day subsequent to the said
date, his pay shall be the pay which he was entitled on such subsequent date.

9. CONTRIBUTION BY THE UST XYZ:

The University of Science & Technology XYZ shall make monthly contribution to the
account of each subscriber @ 12% of the basic pay of subscriber as given in sub-rule (8.i)
above and such contribution shall be credited to Fund. The amount shall be contributed
from the university account and shall be worked out at source on monthly basis by the Pay
Section

10. ACCRUAL OF PROFIT EARNED:

(10.1) The profit earned through investment shall be credited to each subscriber's account
at the end of each financial year on such rates as may actually be received.
(10.2) The profit shall be credited with effect from 1st July every year the
interest/markup pro-rate on the basis of total balance shall be declared the
university employee account on their balance and credited to the account of each
subscriber within Three (3) months after closing the financial year.

11. NOMINATION:

(11.1) The Board shall require every subscriber to make a nomination on the Form B or on
Form C conferring the right to receive the amount that may stand to his credit in the Fund in
the event of his death occurring before the amount standing to his credit has become
payable.

(11.2) The nomination may be in favour of one or more members of the Subscriber’s family
and shall be made as hereinafter. A subscriber who at the time of joining the Fund has a
family shall send to the Secretary a nomination in the Form A, A-1 and B in favour of one or
more persons of his family as the case may be.

11.3 A subscriber who at the time of joining the fund has no family shall send to the
Secretary a nomination in the Form A, A-1 and C as provided in these Rules. If subsequently
he acquires a family he should send a nomination as provided in these Rules and the
previous nomination thus shall stand suspended.

11.4 A subscriber at any time or on the death of nominee cancels a nomination by sending
a note on Form B-1 or on Form C1 in writing and may subscriber substitutes another
nominee as prescribed.

12. WITHDRAWAL FROM THE FUND:

Temporary advances may be granted by the Chairman Board of Trustee upto 60
percent for all the purposes as mentioned in Sub Sections (a) to (e) below,
provided that for the construction/ purchase of house or land, i.e. Sub-Section (f)
the loan upto 80 percent of the credit balance could be extended:-

(a) To defray expenses on illness of the subscriber or his dependents.

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 (b) To defray expenses on education of subscriber’s children or dependents.
(c) To defray expenses on marriage, religious ceremonies, performance of
hajj/umrah/ziarat or visit to holy shrines.
(d) To purchase books, professional aids and equipments or vehicle.
(e) To pay premium on insurance policies.
(f) To repair/purchase a house/land.

Such advances shall be recoverable at the most in 36 or 24 equal

installments deductible from the salary over and above the normal deductions. A
subscriber may liquidate the loan in lumpsum or lesser installments.

13. SECOND WITHDRAWAL:

No second withdrawal from the Fund shall be allowed until the sum first drawn
has fully been repaid by the subscriber.

14. PAYMENT TOWARDS INSURANCE POLICIES:

(14.1) Payment towards an insurance policy may, at the option of a subscriber, be

substituted for the whole or part of subscription to the Fund.

(14.2) The amount of subscription with profit to the credit of a subscriber in the Fund
may be withdrawn as presented to meet a payment towards life insurance policies
subject to the condition that the subscription is available at his credit in the Fund.

(14.3) The subscriber shall provide to the Board within such time as the Board may
prescribe certified copies of the Insurance Policies thereof to satisfy the Board and the
income tax authorities.

(14.4) The Board shall not make any payment on behalf of the subscriber to the
insurance co. nor shall take steps to keep a policy alive unless the Board is requested
by the employee in writing to do so.

(14.5) If the policy matures, the subscriber shall repay the full amount drawn for the
purpose to the Fund.

15. DISBURSEMENT OF FUND.

If an employee is terminated from service or leaves the service or join CP-Fund

service in any other Government institution/organization with less than two year’s
continuous service he will be refunded/ transferred his contributions without profit.

In all other cases an employee, when he leaves service, will be paid the
accumulated balance to credit in account (i.e. inclusive of UST, XYZ contribution and
profit) in accordance with the following scale:

(a) More than two year but less than Employee’s subscription plus
three year continuous service 25% of the UST, XYZ’s
contribution.

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 (b) More than three year but less than Employee’s subscription plus
five year continuous service 50% of the UST, XYZ’s
contribution

(c) Five year or more of continuous Employee’s subscription and

service UST, XYZ contribution and
profit.
(d) Incase of death while in service Employee’s subscription and
UST, XYZ contribution and
profit, irrespective of criteria
given at (a), (b) and (c).

Note: When the Subscriber leaves no family:

(i) If there is a nomination in favour of any person(s), the amount shall

become payable to the nominee(s) in the specified proportion.

(ii) If there is no nomination, the payment shall be made to such

claimants as can produce a legal authority.

16. RECOVERY OF UST XYZ DUES:

(16.1) When the amount of Fund becomes payable to the employee, the Secretary
may direct that any amount due under a liability incurred by the subscriber to the UST
XYZ up to the total amount of the contribution of the employer, the profit accrued
thereon, shall be realized from the subscriber from the amount payable to him and the
amount so deducted will be paid to the University relevant Account.

(16.2) Except as provided in rule 16.1, no deduction shall be made from the amount
standing to the credit of the subscriber when final payment is made to him or his
nominee.

17. WINDING UP OF THE FUND:

(17.1) The Fund may be winded-up by a special resolution approved by the Syndicate
of UST XYZ.

(17.2) The fund shall be subject to any amendment in the rules from Govt. from time to
time with the approval of the Syndicate.

(17.3) Before closing the Fund, the Board of Trustees shall be responsible to pay all
assets/dues of the Fund standing to the credit of the subscribers discharging all the
expenses and liabilities in-connection with the Fund.

19. DETERMINATION OF DISPUTES:

The decision of the Syndicate, UST XYZ shall be final and binding upon the
subscribers and the University in all matters relating to the Fund and the interpretation
and application of these Rules and on matters not specifically provided for herein.

20. Relaxation/Amendments:

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In order to avoid undue hardship to a subscriber, the Chairman, Board of Trustees may
in exceptional cases for reasons to be recorded in writing, relax any of these Rules.
Similarly, the Chairman, Board of Trustees, may recommend to the Syndicate any
amendments in these Rules.

FORM-A

UNIVERSITY OF SCIENCE & TECHNOLOGY, XYZ

EMPLOYEES CONTRIBUTING PROVIDENT FUND FORM OF AGREEMENT

To:
The Chairman,
Employees C.P.F
Board of Trustees,
UST, XYZ.

Sir,
I hereby declare that I have read and understood the employees C.P. Fund
Rules of UST XYZ and hereby agree to be bound by the said Rules and also agree to
subscribe to the Fund:

Name (in full):

Father’s Name:

Designation:

Date of Birth

Basic Pay and Scale:

CNIC No:

Dated: Yours Obediently,

Signature:

Witness Signature: _________

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Name: _____________ ___
Designation/Address: __________ ______
CNIC: _________________
FORM-A1

UNIVERSITY OF SCIENCE & TECHNOLOGY, XYZ

EMPLOYEES CONTRIBUTORY PROVIDENT FUND

(FOR FIXING RATE OF SUBSCRIPTION)

To:

The Chairman,
Employees C.P.F,
Board of Trustees,
UST, XYZ.

Sir,

I hereby request that under Statute-8 of the UST XYZ Employees

C.P.F. Rules, 10 percent of my pay may be deducted from my salary every month as
my subscription to the Provident Fund Account.

Dated:________________ Yours Obediently,

Signature: _______________________

Name: __________________________

Designation: _____________________

CNIC: _____________________

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 FORM-B
UNIVERSITY OF SCIENCE & TECHNOLOGY, XYZ

CONTRIBUTORY PROVIDENT FUND (FORM OF NOMINATION WHEN THE

SUBSCRIBER HAS A FAMILY)

To:
The Chairman,
C.P.F Board of Trustees,
XYZ.
Sir,
I hereby request that the amount payable to me from UST XYZ
C. P. Fund at the time of my death be distributed among the members of my family
mentioned below in the manner shown against their names:

Name & Address of Relationship with the Age of Nominee Amount of share
the Nominee Subscriber of accumulation

Dated:________________ Yours Obediently,

Signature: _______________________

Name: __________________________

Designation: _____________________

CNIC: ____________________

Witnesses:

1 Name: _______________________
Designation: __________________
Address: _____________________

CNIC: _______ ____________

2. Name: _______________________

Designation: __________________

Address: _____________________

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 CNIC: _____________ ______

FORM-B-1
UNIVERSITY OF SCIENCE & TECHNOLOGY, XYZ

CONTINGENT NOTICE OF CANCELLATION OF NOMINATION

Without prejudice to any right under Clause 11.4 of the UST XYZ C.P. Fund
Rules, the nominee/s predeceasing me, the said nomination shall forthwith stand
cancelled.

Dated: _________________________

Signature: ______________________

Name: _________________________

Designation: ____________________

CNIC: ___________________

Witnesses:

1) Signature: ______________________

Name: _________________________

Address: _______________________

CNIC: _______________________

2) Signature: ______________________

Name: _________________________

Address: _______________________

CNIC: _______________________

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 FORM-C
UNIVERSITY OF SCIENCE & TECHNOLOGY, XYZ

CONTRIBUTORY PROVIDENT FUND (FORM OF NOMINATION WHEN THE

SUBSCRIBER HAS NO FAMILY)

To:
The Chairman,
C.P.F Board of Trustees,
UST, XYZ.
Sir,
I hereby request that the amount payable to me from UST XYZ C. P. Fund at the
time of my death be distributed among the following person/s in the manner shown
against their names:

Name & Address of Relationship with the Age of Nominee Amount of share of
the Nominee Subscriber accumulation

Dated:________________ Yours Obediently,

Signature: _______________________

Name: __________________________

Designation: _____________________

CNIC: _______________________

Witness:

1. Name: _______________________
Designation: __________________
Address: _____________________
CNIC: _____________________

2. Name: _______________________
Designation: __________________

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Address: _____________________
CNIC: _____________________

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