KARNATAKA STATE EMPLOYEES' GROUP INSURANCE SCHEME RULES, 1981

KARNATAKA STATE EMPLOYEES' GROUP INSURANCE SCHEME RULES, 1981[1]

PREAMBLE

In exercise of the powers conferred by the proviso of Article 309 of the Constitution of India, the Governor of Karnataka hereby makes the following rules, namely.--

Rule - 1. Title and date of effect.

1.1   These rules may be called the Karnataka State Employees' Group Insurance Scheme Rules, 1981.

1.2   These rules shall come into force from the First day of January, 1982.

Rule - 2. Objective.

2.1   The Karnataka State Employees' Group Insurance Scheme, hereinafter referred to as "Scheme", is intended to provide for the State, employees, at a low cost and on a wholly contributory and self-financing, basis, the twin benefits of an insurance cover to help their nominees in the event of death in service and a lump sum payment to augment their resources on retirement.

Rule - 3. Application.

3.1   The 'Scheme' shall apply to.--

(i)       all State Government employees appointed in accordance with the rules of recruitment;

(ii)      State Government employees borne on work-charged establishment on time scales of pay;

(iii)     State Government employees borne on contingent establishment on time scales of pay; and

(iv)    employees, other than those mentioned at (i), (ii) and (iii) above, to whom the 'Scheme' may be extended under orders of Government.

3.2   The 'Scheme' shall not apply to.--

(i)       persons in casual employment;

(ii)      persons subject to discharge from service on less than one month's notice; and

(iii)     persons for whose appointment, and other matters provisions are made by or under any law for the time being in force or in any contract in regard to matters covered by such law or such contract.

3.3   Such State employees to whom the 'Scheme' applies are hereafter referred to as "employees" or "employee".

Rule - 4. Membership.

4.1   Membership of the 'scheme' shall be compulsory for all those 'employees'.--

(i)       who are in service as on 1st January, 1982; and

(ii)      who join service on or after 1st January, 1982.

4.2   Those 'employees' who are in service as on 1st January, 1982 shall cease to subscribe to the Karnataka State Employees Family Benefit Fund with effect from 1st January, 1982 and shall be enrolled as members of the scheme with effect from the said date.

4.3   All 'employees' who enter service in a month other than January, after the 'Scheme' has come into force, shall be enrolled as members of the 'Scheme' on the next anniversary of the 'Scheme'.

4.4   Every 'employee' enrolled as member of the 'Scheme' shall be informed by the head of office concerned the date of his enrollment and the subscription to be deducted from his salary/wages in Form 1.

Rule - 5. Subscription of members.

[2][5.1 The subscription for the "Scheme" shall be in units of Rs. 60/- per month. A Group 'D' employee shall subscribe for one unit, a Group 'C employee for two units, a Group 'B' employee for three units and a Group 'A' employee for four units. Thus, the rate of subscription for a member of the "Scheme" shall be Rs. 60/-, Rs. 120/-, Rs. 180/- and Rs. 240/- per month for Groups 'D', 'C', 'B' and 'A' employees respectively.

5.2   In the event of regular promotion/appointment of a member from one Group to another his subscription shall be revised from the next anniversary of the "Scheme" to the level appropriate to the Group to which he is promoted or appointed. Until the date of the next anniversary of the "Scheme" he shall continue to be covered for insurance for the same amount for which he was eligible before such promotion/appointment.

For example a Group, 'D' employee promoted/appointed on regular basis to Group 'C' in February 2000 shall continue to subscribe at the rate of Rs. 60/- per month upto December 2000 and be eligible for the insurance cover of Rs. 60,000/- only, in addition to the benefits from the Savings Fund appropriate to his subscription. From January 2001 his subscription shall be revised to Rs. 120/- per month and he shall become eligible for an insurance cover of Rs. 1,20,000/- in addition to appropriate benefits from the Savings Fund.]

5.3   On his regular promotion/appointment from one Group to another every member shall be informed by the head of office concerned the month from which the subscription to be deducted from his salary/wages is revised as in Form 2.

Rule - 6. Premium and insurance cover for 'employees' other than members.

[3][An 'employee' entering service in a month other than January falling after first January, 2000 shall be given the benefit of insurance cover applicable to the Group, to which he belongs from the date of joining Government service to the date of his becoming member of the "Scheme" on payment of subscription of Rs. 18/- per month as the premium for every Rs. 60,000/- of the insurance cover. From the date of anniversary of the "Scheme" he shall pay subscription at the rate indicated in Para 5.1 above.

For example, a Group 'D' employee entering service in February 2000 shall pay a subscription for Rs. 18/- per month as premium for an insurance cover of Rs. 60,000/- for a period of eleven months upto December 2000 and from January 2001 his subscription shall be raised to Rs. 60/- per month and he shall become eligible for the benefits from the Savings Fund in addition to the insurance cover of Rs. 60,000/-. Similarly, a Group 'C employee entering service in February 2000 shall pay a subscription of Rs. 36/- per month as the premium for an insurance cover of Rs. 1,20,000/- for a period of eleven months upto December 2000 and from January 2001 his subscription shall be raised to Rs. 120/- per month and he shall become eligible for the benefits from the Savings Fund in addition to insurance cover of Rs. 1,20,000/-.]

Rule - 7. Insurance Fund and insurance cover for members.

7.1   In order to provide an insurance cover to each member of the 'scheme' such portion of the monthly subscription as may be specified from time to time under orders of Government and for the present an amount of Rs. 3,125/- for each unit of subscription shall be credited to an Insurance Fund to be held in the Public Account of the State Government. The amount of insurance cover shall be Rs. 10,000/- for each unit of subscription. It shall be paid to the nominee/nominees of the member who dies due to any cause, while in service.

7.2   The positive or negative balance under the Insurance Fund shall be credited or debited, as the case may be, with the amount of interest calculated at the prevailing rate of interest on the Post Office savings bank deposits, which at present is 5 1/2 per cent per annum.

Rule - 8. Savings Fund.

8.1   Such portion of the monthly subscription as may be specified from time to time under orders of Government and for the present an amount of Rs. 6.875/- for each unit of subscription shall be credited to a Savings Fund. The amount in the Savings Fund shall be held by the State Government in Public Account. The total accumulation of savings together with interest thereon shall be payable to the member on his retirement after attaining the age of superannuation or on cessation of his employment with the State Government or to his family on his death while in service.

8.2   The benefit admissible from the Savings Fund shall be as determined by Government from time to time and for the present as per illustration table attached herewith. This benefit is illustrative and in practice could be a little more or less than the amount shown in the table which has been constructed on the basis of individual's subscription reduced by the cost of insurance at mortality rate of 3.75 per thousand and the compound interest of 10 per cent thereon. If at any time the rate of interest changes and/or the cost of insurance changes the benefit available from the Savings Fund is liable to be changed correspondingly.

[4][8.2(a) The benefit admissible from the Savings Fund with effect from 1st January, 1985 shall be as given in illustration Table 2. This table shall be applicable to an employee who becomes a member of the scheme on or after the 1st January, 1985. The benefit admissible from the Savings Fund with effect from 1st January, 1985 in respect of an employee who was a member of the scheme before that date and who retires on attaining the age of superannuation or otherwise ceases to be a member after that date shall be as given in illustrative Tables 3 to 5. This benefit is illustrative and could be a little more or less than the amount shown in the Tables, which have been constructed on the basis of individual subscription reduced by the cost of insurance at mortality rate of 3.75 per thousand and the compound rate of interest of 11% thereon. The benefits as shown in these Tables shall be in force until further orders.]

[5][8.2(b) The benefit admissible from the Savings Fund with effect from 1st January, 1988 shall be as given in Table 6. This table shall be applicable to employee who becomes a member of the scheme on or after the 1st January, 1988. The benefit admissible from the Savings Fund with effect from 1st January, 1988 in respect of an employee who was a member of the scheme before that date and who retires on attaining the age of superannuation or otherwise ceases to be a member after that date shall be as given in Tables 7 to 12. The benefits as shown in these tables shall be in force until further orders.]

[6][8.2(c) The benefit admissible from the Savings Fund with effect from 1st January, 1993, shall be as given in Table 13. This table shall be applicable to an employee who becomes a member of the scheme on or after the 1st January, 1993. The benefit admissible from the Savings Fund with effect from 1st January, 1993 in respect of an employee who was a member of the scheme before that date and who retires on attaining the age of superannuation or otherwise ceases to be a member after the date shall be as given in Tables 14 to 24. The benefits as shown in these tables shall be in force until further orders.]

[7][8.2(d). The benefit admissible from the Savings Fund with effect from 1st January, 1998 shall be as given in Table 25. This table shall be applicable to an employee who becomes a member of the scheme on or after the 1st January, 1998. The benefit admissible from the Savings Fund with effect from 1st January, 1998 in respect of an employee who was a member of the scheme before that date and who retires on attaining the age of superannuation or otherwise ceases to be a member after that date shall be as given in Tables 25 to 41. The benefits as shown in these tables shall be in force until further orders.]

[8][8.2(e) The benefit admissible from the Savings Fund with effect from First January, 2000 shall be as given in Table 42. This table shall be applicable to an employee who becomes a member for the Scheme on or after First January, 2000. The benefit admissible from the Savings Fund with effect from First January, 2000 in respect of an employee who was a member of the Scheme before that date and who retires on attaining the age of superannuation or otherwise ceases to be a member after that date, shall be as given in Tables 42 to 60. The benefits as shown in these tables shall be in force until further orders.]

8.3   In the case of death of a member the payment of the amount of insurance shall be in addition to the payment from the Savings Fund.

8.4   The positive balance under the Savings Fund shall be credited with the amount of interest calculated at the rate notified by the Government for the purpose.

8.5   Subject to the provisions of sub-rule (4) above, interest shall be allowed at 10 per cent per annum (compounded quarterly) on the balances in the Savings Fund for a block of five years commencing from the date the scheme comes into force.

[9][8.6 Notwithstanding anything contained in sub-rule (5) above and subject to the provisions of sub-rule (4), with effect from 1st January, 1985 and until further orders, interest shall be allowed at 11 per cent per annum (compounded quarterly) on the balance in the Savings Fund.]

[10][8.7 Notwithstanding anything contained in sub-rules 8.5 and 8.6 above subject to the provisions of sub-rule 8.4, with effect from 1st January, 1988 and until further orders, interest shall be allowed at 12 per cent per annum (compounded quarterly) on the balances in the Savings Fund.]

Rule - 9. Recovery of subscription.

9.1   The subscription of a member for a month shall fall due at the commencement of the normal working hours on the first day of that month.

9.2   The subscription as a premium for the insurance cover from the date of joining Government service to the date of membership of the 'scheme' shall initially fall due from the date of joining and subsequently from the commencement of normal working hours on the First day of every month.

9.3   The subscription for a month shall be recovered by deduction from the salary/wage of the member/employee for the preceding month, irrespective of the date of actual payment of the salary/wage. The first premium referred to in para 9.2 shall, however, be paid by the "employee" in cash.

9.4   The subscription shall be recovered every month including the month in which the member/employee ceases to be in employment on account of retirement, death, resignation, removal from service etc.

9.5   The Drawing and Disbursing Officer shall recover the subscription from the members/employees irrespective of their being on duty, leave or suspension.

9.6   No interest shall be levied on arrears of subscriptions if the non-recovery is due to delayed payments of salary/wage.

9.7   If an 'employee' or a member is on extraordinary leave and there is no payment of his salary/wage for the period, his subscriptions for such period shall be recovered with interest admissible under the 'scheme' on the accretions to the Savings Fund in not more than three instalments commencing from his salary/wage for the months including the month in which he resumes duty after leave. If an 'employee' or a member dies while on extraordinary leave the subscriptions due from him shall be recovered with interest admissible under the 'scheme' on the accretions to the Savings Fund from the payments admissible to his family under the 'scheme'.

For example, if a Group 'D' member/employee proceeds on ten months' extraordinary leave from 5th February, 1982 to 4th December, 1982 and no salary/wage is paid to him for any day for March 1982 to November 1982, his subscriptions totalling Rs. 80 shall be recovered together with interest calculated at the compound rate of interest of 10% per annum in not more than three instalments commencing from December 1982.

[11][9.8 If an employee or member proceeds on deputation to 'foreign service in India' the borrowing authority or the foreign employer shall recover the subscription and credit the amount to the State Government in accordance with the accounting procedure prescribed by Government in this behalf. It shall be ensured that a clause to this effect is included in the terms of deputation to foreign service. The recovery of this amount and its credit shall be watched in the manner specified in the accounting procedure prescribed by Government, by the Head of the parent office. If at any time the recovery of the subscription falls in arrears, the same shall be recovered with interest admissible under the 'scheme' on the accretions to the Savings Fund, in not more than three instalments.]

Rule - 10. Payment from Insurance Fund/Savings Fund.

10.1 If a member retires on attaining the age of superannuation or otherwise ceases to be in State Government service and his service book discloses that he has been a member of the 'scheme'. The Head of Office shall issue a sanction for the payment of the member's accumulation in the Savings Fund after obtaining a simple application in Form No, 3.

[12][10.2 (a) (i) When a Government servant dies while in service or after retirement or resignation etc., without receiving the amount due to him under the scheme and leaves a family and if valid nomination in favour of a member or members of his family subsists the amount due in respect of him shall be payable to such nominee or nominees.

(ii) The Head of the Office shall address the nominee in Form No. 4 to submit an application in Form No. 5 and on receipt thereof issue a sanction order for payment of amounts due.

(b) (i) When a Government servant dies while in service or after retirement or resignation etc., without receiving the amount due to him under the scheme and leave a family and no nomination in favour of a member or members of his family subsists or if such nomination relates only to a part of the amount payable under the scheme, the whole amount or part thereof to which the nomination does not relate, as the case may be, shall, notwithstanding any nomination purporting to be in favour of any person or persons other than a member or members of his family, became payable to the members of his family in equal shares, on the basis of survivor certificate issued by a revenue authority not below the rank of a Tahasildar:

Provided that ho share shall be payable to

(i)       sons who have attained majority;

(ii)      sons of a deceased son who have attained majority;

(iii)     married daughters whose husbands are alive;

(iv)    married daughter of a deceased son whose husband is alive,

if there is any member of the family other than those specified in clauses (i), (ii), (iii) and (iv). Provided further that the widow or widows and the child or children of a deceased son shall receive between them in equal parts only the share which that son would have received if he had survived the subscriber and had been exempted from the provisions of clause (i) of the first proviso.

(ii) The surviving family members shall apply to the Head of Office along with the survivor certificate issued by a revenue authority not below the rank of a Tahsildar for the payment of the amount due.

(c) (i) When a Government servant dies while in service or after retirement or resignation etc., without receiving the amount due under the scheme and leaves behind no family and has made no nomination or the nomination made by him does not subsist, the amount due under the scheme shall be payable to his legal heir(s) on the basis of succession certificate issued by the Competent Authority.

(ii) The legal heir(s) shall apply to the Head of Office with the Succession Certificate issued by the Competent Authority for the payment of the amount due.]

10.3. The amount payable to the [13][nominee(s)/member(s) of the family/legal heir(s)] of an 'employee' who has the benefit, of an insurance cover only shall be the amount of insurance appropriate to his Group.

10.4 The amount payable to the [14][nominee(s)/member(s) of the family/legal heir(s)] of a member of the 'scheme' who dies while in service, shall be.--

(a)      the amount of appropriate insurance to which he was entitled at the time of his death; plus

(b)      the amount due to him out of the Savings Fund for the entire period of his membership in the lowest Group; and

(c)      the amount or amounts due to him for the additional units by which his subscription was raised on each occasion due to appointment/promotion to higher Group for the period from which the rate of subscription was raised to the date of his death.

For example, if a Group 'D' employee, who is a member of the 'scheme' acquires a membership in Group 'C' and Group 'B' after 5 years and 15 years of service respectively and dies while in service after 30 years of total membership in all these groups, his nominee or nominees shall be paid the sum of the following amounts;

(i)       the amount of insurance of Rs. 30,000/- due on a monthly subscription of Rs. 30/- being a Group 'B' employee on the date of his death;

(ii)      the amount due from Savings Fund on a monthly subscription of Rs. 10/- for 30 years;

(iii)     the amount due from Savings Fund on a monthly subscription of Rs. 10/- (Rs. 20 - Rs. 10) for 25 years; and

(iv)    the amount due from Savings Fund on a monthly subscription of Rs. 10/- (Rs. 30 - Rs. 20) for 15 years.

10.5. The amount payable to the 'member' who ceases to be in employment with the State Government on account of resignation, retirement etc., shall be.--

(a)      the amount due to him out of the Savings Fund for the entire period of his membership in the lowest Group; and

(b)      the amount or amounts due to him for the additional units by which his subscription was raised on each occasion due to appointment/promotion to higher Group, for the period from which the rate of subscription was so raised to the date of cessation of his membership.

For example, if a Group 'D' employee who is a member of the 'scheme' acquires a membership in Group 'C' and Group 'B' after 10 and 20 years of service respectively and retires on superannuation after 30 years of total membership in all these Groups, he shall be paid the sum of the following amounts.--

(i)       the amount due to him from Savings Fund on a monthly subscription of Rs. 10/- for 30 years;

(ii)      the amount due to him from Savings Fund on a monthly subscription of Rs. 10/- (Rs. 20 - Rs. 10) for 20 years; and

(iii)     the amount due to him from Savings Fund on a monthly subscription of Rs. 10/- (Rs. 30 - Rs. 20) for 10 years.

10.6 If any 'employee' or member dies during a month before the recovery of subscription for that month from him, the amount due in respect of him shall be paid after deducting the subscription.

10.7. If any 'employee' or member joins later on an All India Service, his case shall be regulated in such manner as may be decided by the Government.

Rule - 11. Withdrawals from Insurance Fund/Savings Fund.

11.1 It will not be permissible for any member or other beneficiary of the 'scheme' to withdraw any amount out of the Insurance Fund to which he has been subscribing. The amount due from the Fund on the death of member of the 'scheme' while in service, shall be worked out in accordance with para 10 and paid to his nominee(s) in accordance with the accounting procedure prescribed by Government.

11.2 It shall also not be permissible for any member of the 'scheme' to withdraw any amount of the savings Fund to which he has been subscribing. The amount due to him from the fund on his cessation of employment on account of resignation, retirement etc., shall be worked out in accordance with para 10 and paid to him or his nominee(s) in accordance with the accounting procedure prescribed by Government.

Rule - 12. Loans/advances from or against accumulations in Insurance Fund/Savings Fund.

No loans or advances shall be paid to any member or other beneficiary of the 'scheme' from or against his accumulations in the Insurance Fund/Savings Fund to which he has been subscribing.

Rule - 13. Utilisation of accumulations in Insurance Fund/Savings Fund.

The accumulations in the Insurance Fund/Savings Fund shall be at the disposal of the State Government. Since the 'scheme' is wholly self-financing and self-supporting, the bulk of these accumulations may be utilised for ownership housing schemes and other schemes for the benefit of the members of the 'scheme'.

Rule - 14. Mode of notification of the 'scheme'.

The 'scheme' shall be notified to the 'employees' by displaying a copy thereof on the notice board or where no such notice board is provided, at a prominent place in the premises where the employees are working. A few copies of the 'scheme' may also be supplied to the recognised unions/associations of the employees.

Rule - 15. Action on the 'scheme', coming into force.

15.1 By the 10th of the month preceding the month in which the 'scheme' comes into force, the Head of Office shall supply to the Drawing and Disbursing Officer a statement indicating the name, the Group and the date of birth of every 'employee' in service on the date of commencement of the scheme.

15.2 By the 10th of every month from the month, in which the 'scheme' comes into force, the Head of Office shall supply to the Drawing and Disbursing Officer, names, group, dates of birth and dates of appointment of persons.--

(a)      who may be appointed to any service or post under the State Government during the preceding month and who would be eligible for insurance cover under the 'scheme' in terms of Rule 6.1;

(b)      who have been enrolled as members of the scheme during the preceding month in terms of Rule 4.3; and

(c)      who have been promoted/appointed from one group to another and whose rate of subscription is revised in terms of Rule 5.2.

Rule - 16. Register of members.

The Head of Office shall ensure that Group-wise register of members is maintained in the Form No. 8 and kept up-to-date. This register shall be sent to the Drawing and Disbursing Officer concerned once a year to verify whether appropriate subscriptions are being recovered from all employees who have joined the Insurance Fund or both the Insurance Fund and the Savings Fund under the 'scheme' and to record a certificate to this effect.

Rule - 17. Nomination.

17.1 The Head of Office shall obtain from every 'employee', a nomination conferring on one or more persons, the right to receive the amount that may become payable under this 'scheme' in the event of his death before attaining the age of superannuation. In the case of 'employees' who are already in State Government service as on the 1st January, 1982, such nomination shall be obtained immediately and in any case within two months and in the case of 'employees' who join State Government service on or after 1st January, 1982, such nomination shall be obtained along with the joining report,

[15][17.2. If any 'employee' or member of the 'scheme' has a family at the time of his making the nomination he shall make such nomination only in favour of a member or members of his family. 'Family' for this purpose means:

(i)       in the case of a male subscriber the wife or wives and children of the subscriber, and the widow or widows, and children of a deceased son of the subscriber; provided that if a subscriber proves that his wife has been judicially separated from him or has ceased under the customary law of the community to which she belongs to be entitled to maintenance, she shall henceforth be deemed to be no longer a member of the subscriber's family in matters to which these rules relate, unless the subscriber subsequently indicates by express notice in writing to the Head of the Office that she shall continue to be so regarded; and

(ii)      in the case of a female subscriber, the husband and children of a subscriber, and the widow or widows and children of a deceased son of a subscriber; provided that if a subscriber by notice in writing to the Head of the Office expresses her desire to exclude her husband from her family, the husband shall henceforth be deemed to be no longer a member of the subscriber's family in matters to which these rules relate, unless the subscriber subsequently cancels formally in writing her notice excluding him.

Note 1.--An adopted child shall be considered to be a child of the adoptive parents when the Head of the Office or if any doubt arises in the mind of the Head of the Office, the Administrator of the scheme in Karnataka, Bangalore, is satisfied that under the personal law of the subscriber, adoption is legally recognised as conferring the status of a natural child.

Note 2.--A child of one person given in adoption to another shall not be considered to be the child of the former for the purpose of the benefits of this scheme unless the Head of the Office or the Administrator of the Scheme in Karnataka is satisfied that under the personal law of the persons concerned such adoption is legally recognised.

Note 3.--The term 'Head of the Office' refers to.--

(a)      The Head of the Office in the case of employees belonging to Groups 'C' and 'D'.

(b)      The Head of the Department concerned in respect of Officers belonging to Group 'A' and Group 'B' services of all Departments except officers belonging to the K.A.S. and Officers of the Community Development Department like the Block Development Officer, District Development Assistants etc.

(c)      The Department of Personnel and Administrative Reforms and the Rural Development and Panchayat Raj Departments respectively in respect of Officers belonging to the K.A.S. and Officers of the Community Development like Block Development Officers, District Development Assistants etc.

(d)      The Secretary to Government in the Administrative Department of the Secretariat, in the case of Heads of Departments; and

(e)      The Head of the Department concerned in the case of Government employees in foreign service.]

17.3 If any 'employee' or member nominates more than one person under Rule 17.1 he shall specify in the nomination the amount of share payable to each of the nominees in such a manner as to cover the whole of the amount payable under the 'scheme', failing which the amount payable under the 'scheme' shall be equally distributed among the nominees.

17.4 The nomination shall be made in Form No. 6 or Form No. 7, as is appropriate in the circumstances.

17.5 Any 'employee' or member of the 'scheme' may at any time cancel a nomination by sending a notice to the Head of Office along with a fresh nomination made in accordance with the above provision.

17.6 The nomination received from the 'employees'/members shall be countersigned by the Head of Office and pasted on their service books. The Head of Office shall also make an entry in the service book that the nomination has been duly received.

Rule - 18. The existing Karnataka State Employees' Family Benefit Fund.

18.1 All "employees" who are in service as on 1st January, 1982 and who are governed by this 'scheme' shall with effect from the said date, cease to subscribe to the Karnataka State Employees Family Benefit Fund established by Government Order No. FD 170 PID 74, dated 19th May, 1975. The amount which would have been due to them under the existing Fund, had they ceased to be in employment with the State Government in the afternoon of 31st December, 1981 shall continue in the said Fund. This amount shall carry interest at 6 2/3 per cent per annum. The amount together with the interest thereon shall be payable to the employees on their retirement or to the person(s) who would have been entitled to receive family benefit under Rule 9 of the Karnataka State Employees' Family Benefit Fund Rules:

[16][Provided that the amount shall carry interest at 10.5% per annum with effect from 1-6-1985.]

18.2 For 'employees' who join service on or after 1st January, 1982, membership of the Karnataka State Employees' Family Benefit Fund shall not be admissible.

Rule - 19. Administration.

The Director of Small Savings is nominated as Administrator of the scheme.

Rule - 20. Accounting.

The transactions relating to the "scheme" shall be accounted for in accordance with the procedure laid down by Government in this behalf.

Rule - 21. Interpretation and clarification.

21.1 If any categories of 'employees' are not specifically classified into Group 'A', Group 'B', Group 'C' or Group 'D', then classification shall be assumed in accordance with the principles laid down in this regard under the Karnataka Civil Services (Classification Control and Appeal) Rules, 1957.

21.2 In the actual implementation of the 'scheme' if any doubt arises in regard to the interpretation of any of the provisions of this 'scheme' or if any point requires clarification, the matter shall be referred to Government whose decision shall be final.

Rule - 22. Review of the 'scheme'.

Government may review the working of the 'scheme' every three years to ensure that the 'scheme' remains self-financing and self-supporting.