1. Application of the Chapter-This Chapter shall apply to all regular employees, except-
  • the transferred Government employees who hold lien on pensionable Government service;
  • casual employees and the employees who are paid from contingency; (c) retired Government servants who have been re-employed under the Board ; and
  • officers appointed on contract, if so provided in the contract.
  1. Constitution and Management of the Fund-(l) There shall be constituted a Fund to be called the Bangladesh Power Development Board Contributory Provident Fund.

(2) The management of the fund shall vest in the Board and its officers authorised in this behalf.

  1. Eligibility of being subscribe to the Fund-(1) An employee to whom this Chapter applies shall be eligible to subscribe to the Fund.
  • The Chairman and members of the Board, may, except on transfer on deputation from the Government, subscribe to the Fund with the approval of the Government.
  • All eligible subscribers shall subscribe monthly to the Fund beginning from a calendar month after entry into regular service of the Board.

Note-An employee on probation shall be eligible, after confirmation, to subscribe to the Fund with retrospective effect.

  1. Conditions and rate of subscription- (l) The amount of subscription shall be fixed at the rate of 10 percent of the pay of the subscriber and such subscription shall be deducted from his monthly pay.

(2) The subscription of a subscriber who is on leave, other than extraordinary leave without pay, shall be deducted at the usual rate from his ‘leave salary but no subscription shall be deducted for any period or extraordinary leave without pay.

  • In case of an employee under suspension, no subscription shall b~ deducted from his subsctence grant, but, if he is subsequently reinstated with pay or leave salary with retrospective effect the subscriptions at the usual rate shall be deducted in lump sum for the entire period of his suspension.
  • No subscription to the Fund shall be deducted for the last broken month of termination of service by retirement, resignation, discharge, dismissal retrenchment or death.
  1. Contribution by the Board-The Board shall contribute to the credit of each subscriber an amonunt equal to the amount of his subscription at the end of each financial year.
  2. Interest-(1) The Board shall pay interest to the credit of the subscribers and the rate of such interest shall be determined by the Board at the end of each financial year.
  • Interest shall be calculated and credited at the end of each financial year in the following manner, namely:on the amount at the credit of a subscriber on the last day of the preceding year, less any sum withdrawn during the current year, interest for twelve months;on sums withdrawn during the current year, interest from the first month of the current year to the month preceding the date of withdrawal;on all sums credited to the subscriber’s account during the current year, interest from the month of deposit to the last month of the current year, subject to the provisions of clause (d). The interest on the Board’s contribution shall be calculated monthly as if it was contributed by the Board concurrently alongwith the subscriber’s monthly contributions;
  • the rate of interest shall be yearly but it shall be calculated on monthly basis also for the purpose of clauses (b), (c) and (f). if the deposit is made before for on the 15 th of the month full interest for that month shall be taken into account, but if the deposit is made after 15th of the month no interest for that month shall be accounted ;
  • the total amount of interest shall be rounded to the nearest whole taka (fifty or more paisa counting as a taka, but less than fifty paisa omitting) ;
  • the deposit shall taka effect from the date of payment of salary from which it isdeducted ; and
  • interest shall accure on the total credit to the account of the subscriber upto the last month preceding the date of final payment (withdrawal) after termination of his service.
  • Interest shall not be credited to the account of a subscriber if he informs in writing that the does not wish to receive it ; but if he subsequently asks for the interest, it shall be credited with effect from the month following that in which he asks for it.
  1. Subscriber’s account-(l) An account shall be opened and maintained in a Pass Book in Form No. 8 wherein all transactions in respect of the subscriber’s account in the Fund shall be entered under the initial and signature of the Accountant and the officer concerned ,with the drawing and disbursement of his salary. This shall be in addition to the usual system of maintaining accounts in the Directorate of Accounts.
  • Regular monthly entries with date should be made in the Pass Book in respect of-
  • subscription of the subscriber;
  • advance, if any, paid to the subscriber;
  • refund of advance, if any; and
  • recovery of interest, if any, on advance.
  • At the end of each financial year entries shall be made in the Pass Book in respect of the contribution of the Board and the interest due to the credit of the subscriber under rule 93.
  • The Pass Book shall remain in safe custody of the Drawing and Disbursing Officer or the Accountant concerned with the salary bills of the subscriber. After up-to- date entries at the end of each financial year, the Pass Book shall be sent to the Director of Accounts for verification who shall, after such verification, return the Pass Book immediately to the concerned Drawing and Disbursing Officer. A copy of the verified yearly accounts shall be sent to the subscriber concerned.
  1. Advance from the Fund-(1) A temporary advance, not exceeding the amount equal to six months pay of the subscriber or 50 percent of the amount subscribed by him together with interest accrued thereon. Whichever is less, may be granted by the Head of Office, to a subscriber who has completed three years service or whose service has been confirmed and who has subscribed to the Fund for not less than three years, for the following purposes namely,-
  • To purchase land for a residential house or for building a residential house or for both;
  • To meet the expenses of marriage of self, son, daughter or dependant sister;
  • To meet the expenses for medical treatment of self or any member of his family, who is dependant on him in case of prolonged illness;
  • to meet the expenses of higher education for self or children;
  • for repair of house;
  • for repayment of loan ; or
  • for any other emergency.
  • An interest on the sum advanced under sub-rule (1) shall be charged. at such rate as shall be prescribed by the Board on the credit of the accounts of the subscriber when such advance is made.

Provided that no such interest shall be charged on any sum advanced to a subscriber whose account does not carry interest.

  • No second advance shall generally be granted until the previous advance and the interest accrued thereon are fully recovered. In special circumstances second advance may be allowed at the discreation of sanctioning authority. The two advances together should not exceed 50 per cent. of the employee’s own contribution.
  • A subscriber may, after attaining the age of 50 years of after completion of 25 years continuous service, withdraw from the Fund an amount not exceeding 80 per cent, of his subscription and interest accrued thereon less the balance of advance, if any, taken under sub-rule (1), Such withdrawal shall be adjusted at the time of final payment on closing his account in the Fund after retirement or termination of his service.
  1. Recovery of advance-(l) An advance granted to a subscriber under rule 96 shall be recovered from him in such number of equal monthly installments as the sanctioning authority may direct, but’ such number shall not be more than thirty- six. A subscriber may, at his option, make repayment earlier in lump sum or in such smaller number of installments as he thinks fit.
  • Recovery shall be made by compulsory deduction from salary bills, in addition to the usual monthly subscriptions, commencing from the first full month’s pay after payment of the advance.. But no recovery shall be made from a subscriber while he is on leave other than leave on full pay, or on subsistence grant except with his consent.
  • The interest, if any, on advance shall be recovered in one or more ‘insta1ments, similar to the principal, in the month or month immediately following the full recovery of the principal.
  1. Nomination-(l) A subscriber shall, as soon as his account in the Fund is opened, furnish a nomination in the Form prescribed in the Pass Book conferring on one or more persons the right to receive the amount that may stand to his credit in the Fund m the event of his death before that amount is paid to him. If any person, so nominated, is minor or under any disability to give a legal discharge for any payment, the subscriber shall at the same time authorised another person who is of full age and capable of giving a legal discharge for the purpose of receiving payments on behalf of the minor or disabled nominee.

(2) If, at the time of making the nomination, the subscriber has a family the nomination shall not be in favour of any person or persons other than ‘ -the members of his family, and if, at the time of making the nomination, the subscriber has no family the nomination shall become invalid in the event of his subsequently acquiring a family when he shall have to furnish fresh nomination in favour of any member or members of his family.

  • If a subscriber nominates more than one person under sub-rule (1)” he shall specify in the nomination the amount or share payable to each of the nominees in such manner as to cover the whole of the amount that may stand to his credit in the Fund.
  • In the event of death of any nominee during the life time of subscriber he shall forthwith nominate another person in the place of the nominee so died.
  • Every nomination shall be signed, by the subscriber making it in the presence of two witness who shall also sign in his presence and in the presence of each other.
  • A subscriber may at any time cancel a nomination by sending a notice in writing and, in that event, shall furnish a fresh nomination in the manner laid down in the foregoing sub-rules. A fresh declaration shall be operative only on being received and acknowledged by the Head of Office.
  • Every nomination and every notice of cancellation given by a subscriber shall, to the extent that it is valid, take effect on the date on which it is received by the Head of Office.
  • The subscriber shall furnish, in duplicate, every nomination, notice of cancellation and fresh nomination to the Head of Office. One copy of each of the same with counter signature of the Head of Office shall be affixed in the Pass Book of the subscriber and the other copy with counter signature of the Head 0 f Office shall be sent to the Director of Accounts.
  1. Final payment-(l) If a subscriber dies or ceases to be a subscriber to the Fund the amount standing at his credit minus the outstanding balance of any advance granted under rule 95 or any other deductions authorised under these rules shall be payable III full or in a lump sum;

Provided that in all cases the sanction of the Head of Office concerned shall first be obtained before the payment is made.

  • The Head of Office at his own accord or on receipt of request from subscriber without any delay.
  • No claim shall be entertainable against the Fund if made more than five years after the date on which the amount due becomes payable and such amount shall be forfeited and credited to the Board’s general fund.
  • Board’s contribution and interest thereon shall not be paid if the employee resigns before_completion of 3 years service or is dismissed, discharged or removed from service on disciplinary ground.
  1. Payment on death-(1) In the event of death of a subscriber, before the amount standing at his credit has become payable or when the amount has become payable, before payment has been made, the amount at his credit shall be disposed of as follows, namely :-
  • if a nomination is made in favour of more than one person, the amount shall be divided among the nominees in accordance with the terms of the nomination. If the nomination relates to a portion only of the amount the balance shall be distributed in the manner, described in clause (e);
  • If the nomination is in favour of a minor and it does not state the person, or persons to whom the sum is intended to be paid for the benefit of the minor, the sum due shall be paid to the minor’s legal guardian to be used for the minor’s benefit;
  • Where a subscriber leaves a family, but no nomination has been received from him, the amount shall be paid to the legal heir or heirs of the subscriber;
  • Where a subscriber leaves no family the amount standing to his, credit in the Fund, shall become payable to his nominee or nominees in the proportion specified in the nomination. If such nomination relates only to a part of the amount standing to his credit in the Fund the whole amount or the part thereof to which the nomination does not relate, shall be paid to such person or person in the manner described in clause (e) ; and
  • if there to be party entitled to receive the amount, it shall be’ paid to the subscriber’s legal heir or such other person or persons, as may be determined by the civil court competent to pass order in this respect;

Provided that if the sum at the credit of the subscriber does not exceed Taka 500 it may be paid to such person or persons as the controlling officer .may consider to be the proper person or persons to receive it.

(2) The Board shall not be bound by, or recognise, any assignment encumbrance executed or attempted to be created which affects the disposal of the accumulation of subscriber’s account in the Fund according to these rules.

  1. Payment on subscriber’s becoming insane, etc.-If any subscriber becomes insane or is otherwise mentally incapacitated to act and the same has been proved to the satisfaction of the Head of Office, the later may; in the absence of any nomination under, rule 97, authorise any amount to which such subscriber may become entitled under these rules to be paid to any person who he may think proper to receive the same in the best interest of such payment is made shall be a good discharge for the same.
  2. Procedure in case in any dispute or difference.-Any dispute or difference which may arise between any subscriber or his executors, administrators, nominees or representatives and the Board as to the construction meaning, operation or effect of any of the rules as to any right, duty or obligations of any subscriber or the Board or as to any matter relating to or arising out of the same shall be referred to the arbitration of two arbitrators, one to be appointed by each party to the dispute and the aribitrators, so appointed, shall appoint an umpire before entering upon the reference in accordance with and subject to the provisions of the Arbitration Act, 1940 (X of 1940).

Note-Nothing herein contained shall be deemed to limit or affect any discretion of the Board under any of the rules or any decision of the: Roard which by any of these rules is provided to be final on any particular matter.

  1. Expenses of management–The Board shall bear the expenses of management of the Fund including auditor’s fees, accounts staff, cost of account books and stationery, etc.
  2. Application for admission-(1) The employees eligible to subscribe to the Fund shall apply to the Director of Accounts for their admission to the Fund through their Head of Office in Form No. 9 on their entry into the regular service of the Board.

(2) On receipt of the application mentioned in sub-rule (l), it shall be -checked in the Fund Section of the Directorate of Accounts with reference to relevant rules and orders and, if found in order, shall be admitted over the signature of the Accounts Officer of the said Section. Thereafter it shall be entered in the General Index Register and the serial number of such Register shall be the account number of the subscriber in the Fund. After allotment of the said number the application shall be passed in a guard file in serial order and a Pass Book alongwith a blank nomination Form shall be sent to

the subscriber through his Head of One.

Note-The officers declare to be the Head of Offices and Controlling Office r$ for the purpose of rules under Chapter-X shall also be the Head of Officers and controlling Officers for the purpose of rules under this Chapter.

  1. Furnishing of particulars by subscriber-(l) The subscriber shall furnish the nomination and other related particulars as required in the Pass Book and on the extra Form of Nomination. The Pass Book with counter signature of the Head of Office shall remain in the office of the local drawing and disbursing officer for regular monthly entries of the deposits. The extra nomination Form with counter signature by the Head of Office shall be returned to the Director of Accounts for record.

(2) If a subscriber cancels his nomination and makes a fresh nomination that shall be entered in the Pass Book duly countersigned by the Head of Office and a copy of such cancellation and fresh nomination with counter signature of the Head of Office shall be sent to the Director of Accounts.

  1. Procedure of keeping accounts-(1) Deductions made on account of the Fund should be shown on the receipt side of the Memo of Receipt and charges of the monthly accounts and when payment is made it should appear on the payment side of the said Memo. The Schedule of deduction in such Form as may be prescribed in this behalf should accompany the monthly accounts of the Divisions. Undertakings and Offices The Accounts Section concerned of the Directorate of Accounts should verify the said Schedule with the said Memo and other relevant documents and pass them on to the Fund Section after recording certificate of such verification. In case of discrepancy, the Accounts Section should take the matter with the Division or undertaking or office as the case may be, for its immediate settlement.

(2) On receipt of the said Schedule from the Accounts Section, the Fund Section shall immediately post the total figure of the said Schedule in the Register of Schedules. The monthly total figure of the said Register should be compared with the figure competed in the Accounts Section. The difference; if any, should be settled immediately after proper verification.

  • Thereafter the figures of the said Schedule shall be posted in detail in the respective Ledger Cards, In case of any irregularity, omission or discrepancy noticed in the course of posting, it should be recorded in red ink on the said Schedule and pursued with the Division or Undertaking or Office, concerned for correction where necessary. Special care should be taken in posting ledger cards to avoid mistakes. Any correction made in the Ledger Cards would be initialed.
  • After the posting in the Ledger Cards is completed, posting of Ledger Book will be taken up. The posting of Ledger Book should be made from Ledger Cards. The following dates should be observed for completion of posting of Ledger Cards and Ledger Book, namely-
  • Posting of Ledger Cards by 30th of the next month; and (b) posting of ledger Book by 15 th of the second month.
  1. Ledger Card-(I) One Ledger Card shall be opened for each subscriber and shall ordinarily be used for 4 years. As soon as the admission of a subscriber is accepted and account number is allotted, the above 1 ledger Card shall be opened. The Ledger Card shall be kept in locked cabinet duly arranged in serial orders of the accounts number, key of which shall remain in possession of the Accountant and the dealing Assistant.
  • The Ledger Card of the subscriber whose account in the Fund is finally closed shall be kept separately from the existing ledger cards. The Ledger Cards shall never- be taken out from the cabinet for reference without a proper mark. The movement of the Ledger Cards outside the Fund Section shall always be recorded in a transit register.
  1. Ledger Book-The detailed accounts of the subscriber shall be maintained in the Ledger Book which shall be treated as original record. The names of the subscriber with necessary particulars shall entered in the Ledger Book in serial orders as soon as their admission are accepted and account numbers allotted. Separate columns shall be maintained in the Ledger Book for posting of subscriber’s monthly subscription, Board’s contribution, interest on subscriber’s subscription and Board’s contribution, advances, recoveries of advances, interest on advance, etc.
  2. Control Account-The Control Account should be maintained to keep the progressive monthly balance in the Fund up-to-date and ready for any immediate reference, if necessary.
  3. Copy of order sanctioning advance-In case of temporary advance from the Fund, a copy of the order sanctioning the advance by the Head of Office shall be sent to the Director of Accounts in addition to the Drawing and Disbursing Officer and the subscriber for information and record.
  4. Final payment-(I) The final payment of the amount standing to the credit of a subscriber in the Fund shall be made by’ the Drawing and Disbursing Officer who paid the last salary bill of the incumbent after the following formalities, namely :-
  • The Drawing and Disbursing Officer concerned shall make the Pass Book up-to- date and send it to the Directorate of Accounts for final verification of the correctness of the account;
  • a sanction order mentioning the amount payable on the basis of final verified Pass Book shall be issued by the Head of Office; and
  • no demand certificates from all concerned offices shall be furnished
  • The Drawing and Disbursing Officer after making final payment shall send the Pass Book to the Directorate of Accounts for closing the accounts and preservation of the same as record.
  • Attempts shall always be made by the Head of Office, Directorate of Accounts and Drawing and Disbursing Officer for final payment of the amount standing to the credit of a subscriber within a month of termination of his Service by death, retirement or otherwise.
  • In case of a subscriber’s account in the Fund being closed for final payment on termination of his service, the interest for the current year or more for which the Board has not yet declared the rate of interest shall be calculated on the basis of the last declared rate of interest.
  1. Bank Accounts-(1) The Board shall maintain a separate bank account made by the Board shall be deposited. The Drawing and Disbursing Officer shall remit the total monthly collection of subscriber’s subscriptions to the said account.
  • The total amount of contribution to be made by the Board shall be intimated by the Fund Section to the Director of Finance’ by the end of each financial year to enable him to arrange transfer of that amount to the said account.
  • The Board shall manage the fund in the best interest of its subscribers. The Board may invest the fund in real estate, saving certificate or fixed deposit with a Commercial Bank with the previous approval of the Government.
  1. Reconciliation of accounts-At the end of each month the Accounts Section shall furnish to the Fund Section a statement showing Division, Undertaking and Office-wise deductions to the Fund. On receipt of the same the Fund Section shall reconcile the total figure appearing in the Control Account or Card.
  2. Audit-The transactions of the Fund shall be audited in each year after close of the account thereof mainly to see that-
  • the transaction conforms to the rules governing the administration of the Fund;
  • the figures of the Fund Section tally with that of the Account Section;
  • the calculation of interest is correct and each subscriber’s account is credited or debited with the appropriate amount of interest for the relevant year; and
  • the realisation of any advance including interest is done properly.
  1. Preservation of records-(I) A list showing the period for which records of the Fund Section shall ordinarily be preserved is given in Annexure ‘A’ to this Chapter.

(2) After the period of their preservation is over the records shall be destroyed after obtaining specific orders of the Director of Accounts in each case.

  1. Forms-A list of the Forms to be used for the maintenance of accounts in the Fund is given in Annexure ‘E’ to this Chapter.



Name of record

1 Admission ForIIls.

Period of preservation .              Remarks

One y.ear after, the tinal


2. Nomination Forms Follows the period prescribed for Fund vouchers of final payment.”
3. Provident Fund Register Ditto.
4. Ledger Cards Ditto.
5. Ledger Book 8 years
6. Register of temporary with drawls and recoveries. 5 years
7. Pass Book arid voucher on which final payment of Fund money are made and acknow, ledged by the payee. 12 years
8. Voucher of temporary advance 6 years


{Vide rule 116)

Form No. Name. Remark.
DA (Fund) 1 … Admission Form …                                     . .. Vide rule 103(1).
DA (Fund 2 … General Index Register                                 . .. Vide rule 103(2).
DA (Fund) 3 … Ledger Card                   …                         . .. Vide rule 106.
DA (Fund) 4 … Schedule of deduction                                  „ .. Vide rule 105.
DA (Fund) 5 … Nomination Form …                                    . .. Vide rule 104.
DA (Fund) 6 … Ledger Book                  …                         . .. Vide rule 107.
DA (Fund) 7 … Pass Book                     …                         . .. Vide rule 94.
DA (Fund) 8 … Register of temporary with-drawals. . .. Vide rule 109.
DA (Fund) 9 … Register of recoveries of temporary                 .


… Vide rule 109 .
DA (Fund) 10 ,.. Register of final payment                              . .. Vide rule 110.
DA (Fund) 11 … Register of Schedule                                    . … Vide rale 105.
DA (Fund) 12 … Control Account              …                         , .. Vide rule 108.



  1. Admissibility-Gratuaity shall be admissible to-
  • all regular employees who rendered at least five years’ continuous service in the Board, and-
  1. V) have not been dismissed, discharged or removed from service

as a measure of punishment ; or

have not resigned, left or discontinued the service without permission of the competent Authority; and

a regular employee whose service is terminated before completion of five years on the following grounds, namely ~-

  • the post to which he is appointed is abolished or the is retrenched from service for

reduction of strength;

  • he is discharged from service due to total or partial disablement; or (iii) he. died while in service ;
  • the work-charged period of service of an employee shall be counted towards computation of gratuity subject to the conditions that- (i) the work-charged period of service may be counted only when it is found to be continuous .and immediately followed, without any break, by service on regular basis. (ii) work- charged service for 2 years shall reckoned as regular service for one year for the purpose of calculation of gratuity only.
  1. Amount-The amount of gratuity shall be computed at the rate of one month’s pay for each completed year of service or for any part thereof exceeding 180 days. The pay last drawn shall be the basis for such computation.
  2. Nomination–(l) Each employee shall make a nomination in Form No. 10 conferring on one or more persons the right to receive the amount of gratuity in the event of his death before payment of gratuity. (2) If an employee nominates more than one person under sub-rule (1), he shall specify in his nomination the share payable to each of the nominees in -such manner as to cover the whole amount of gratuity.
  • An employee may, at any time, cancel a nomination by notice in written, and in doing so; he shall, along with such notice, send a fresh nomination made in accordance with the provisions of sub- rules (1) and (2).
  1. Payment in the event of death-In the event of death of an employee before the payment of gratuity, it shall be paid to his nominee or nominees in -the manner specified by him in his nomination; and, in the absence of any nomination, to .his legal heir or heirs.

Procedure for payment- The payment of gratuity shall be made by the Drawing and the Controlling Officer has sanctioned Disbursing Officer concerned after the same and the bill therefore has been pre-audited by -the Directorate of Accounts. 75% of the gratuity money may, however, be paid “by the Controlling Officer to an employee at the time of proceeding to leave preparatory to retirement.