Rule 68: Terms and conditions for management of trust

Finin2min analysis — operative rule mechanics

Full notified text — Rule 68

68. Terms and conditions for management of trust.–(1) A Board of Trustees shall be established
for the management of the Provident Fund or the Pension Fund according to such directions as may be
given by the Central Government or the Central Provident Fund Commissioner, as the case may be,
from time to time.

(2) The Board of Trustees shall consist of such equal number of representatives each of the employers
and employees as may be specified in the Provident Fund Scheme or the Pension Scheme, as the case
may be.

(3) The employer of such exempted establishment shall be the Chairperson of the Board of Trustees
and the Chairperson may exercise a casting vote in the event of equality of votes and arm‘s length
principles shall be maintained by the Chairperson in all meetings of the Board of Trustees.

(4) The Board of Trustees shall meet at least once in every three months and shall function in the
accordance with the guidelines that may be issued from time to time by the Central Government or the
Central Provident Fund Commissioner or any officer authorised by him.

(5) The terms and conditions, including the tenure of office of the Trustees, the procedure and manner
for election or nomination of the representatives of the employees and of employers to the Board of
Trustees, disqualification and cessation of trusteeship, re-election or re-nomination of trustees, the
quorum at the meeting of the Board, records to be kept of the transaction of business and all such
other matters and conditions for the management of the Trust shall be as provided for in the Provident
Fund Scheme or the Pension Scheme, as the case may be.

(6)     In case of any dispute or doubt on-

        (a) the interpretation of any provision of this rule, such matter shall be referred to the Central
        Government; and

        (b) any clarifications on the grant of such exemption which do not relate to this rule, shall be
        referred to the Central Provident Fund Commissioner or any other officer of the Employees‘
        Provident Fund Organization authorised by him;

and the interpretation of the Central Government or the clarification of the Central Provident Fund
Commissioner or such officers, as the case may be, on such dispute or doubt shall be binding for the
disposal of such matter so referred.

Application and evidence

1. Primary statutory test — (1) A Board of Trustees shall be established for the management of the Provident Fund or the Pension Fund according to such directions as may be given by the Central Government or the Central Provident Fund Commissioner, as the case may be, from time to time.
2. Additional operative limb — (2) The Board of Trustees shall consist of such equal number of representatives each of the employers and employees as may be specified in the Provident Fund Scheme or the Pension Scheme, as the case may be.
3. Numerical or timing control — (4) The Board of Trustees shall meet at least once in every three months and shall function in the accordance with the guidelines that may be issued from time to time by the Central Government or the Central Provident Fund Commissioner or any officer authorised by him.
4. Code Section mapping — 143. Read the mapped provision together with this text rather than treating the concordance as a substitute for it.
5. Evidence file — retain facts and records proving the role/status of: Employer, Employee / worker, Central Government.

Cross-references & prescribed forms

Worked example

Q&A — Rule 68

Primary sources