Section 36 of the Central Universities Act, 2009 - Provident and Pension Funds

Section 36 of the Central Universities Act, 2009 deals with employee social-security arrangements that a University may establish through provident funds, pension funds or insurance schemes. It also enables the Central Government, in the circumstances stated in sub-section (2), to apply the Provident Funds Act, 1925 to a constituted fund as if it were a Government provident fund.

Text of Section 36 - Provident and Pension Funds

Meaning and Scope of Section 36

Section 36 creates the statutory framework for employee provident fund, pension fund and insurance arrangements in a University governed by the Central Universities Act, 2009. The detailed manner, conditions and operation of such arrangements are not exhaustively set out in Section 36 itself. Sub-section (1) expressly makes their implementation subject to the University's Statutes.

1. Provident Fund

A provident fund is generally a fund built through contributions or deposits for the benefit of employees, ordinarily providing an accumulated benefit in accordance with the governing rules. Under Section 36(1), a University may constitute such a fund for its employees subject to the applicable Statutes.

2. Pension Fund

A pension fund is an arrangement intended to provide retirement-related benefits in accordance with its governing legal and statutory framework. Section 36(1) authorizes a University to constitute a pension fund for employees in the manner and on the conditions prescribed by the Statutes.

3. Insurance Schemes

Section 36(1) also permits the University to provide insurance schemes for the benefit of its employees. The nature, eligibility, contributions, benefits and other conditions of a particular scheme must be determined from the applicable Statutes and scheme documents.

4. Role of the University Statutes

The expression "prescribed by the Statutes" is important. Section 36 provides the enabling rule, while the University's Statutes may prescribe the detailed manner and conditions governing the fund or insurance scheme. Therefore, an employee's specific entitlement should be examined with reference to both Section 36 and the Statutes applicable to the concerned University.

5. Application of the Provident Funds Act, 1925

Under Section 36(2), after a provident fund or pension fund has been constituted, the Central Government may declare that the Provident Funds Act, 1925 applies to that fund as if it were a Government provident fund. The Provident Funds Act, 1925 is the Central legislation relating to Government and other provident funds.

Key Points

• Section 36 concerns provident funds, pension funds and insurance schemes for University employees.
• The University may establish the relevant employee-benefit arrangement subject to its Statutes.
• The University's Statutes are important for determining the detailed conditions governing a particular fund or scheme.
• The Central Government may declare the Provident Funds Act, 1925 applicable to a constituted provident or pension fund as if it were a Government provident fund.
• For an individual employee claim, the Act should be read together with the applicable University Statutes, rules, scheme terms, notifications and service conditions.

Official Legal Sources

Last reviewed: 15 September 2026.