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CS Professional · Labour Laws and Practice · Social Security Legislations

A Central Social Security Fund has separate accounts for its three funding sources. The Ministry has a surplus in the account fed by composition of offences and proposes to spend it on a scheme that the account for another source was established to serve. Under the Code, what is the correct position?

The proposal is not permitted. The Code requires a separate account for each funding source and says the Fund must be spent for the purposes for which each separate account was established and maintained, so surplus cannot be freely moved to another account's purpose.

  1. APermitted, since the Fund is a single pool and may be spent freely
  2. BPermitted, if the State Government consents
  3. CNot permitted, as the Fund must be expended for the purposes for which each separate account was establishedCorrect
  4. DPermitted, but only for platform workers

Explanation

A separate account is maintained for each funding clause, and the Fund is to be expended for the purposes for which each separate account was established and maintained. Cross-use of accounts is therefore not allowed; the pooling view ignores this ring-fencing.

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