Skip to content

CS Professional · Labour Laws and Practice · Social Security Legislations

A State Social Security Organisation (not the Corporation) has surplus moneys of Rs 5 crore not immediately needed for expenses. It also manages a Provident Fund Scheme. Under section 120 of the Code, which statement is correct?

The organisation may invest idle moneys subject to conditions prescribed by the appropriate Government. Where the money belongs to a Provident Fund, Pension Fund or Insurance Fund, the investment, reinvestment or realisation must be as specified in the respective scheme.

  1. AIt may invest the moneys subject to conditions prescribed by the appropriate Government, but for Provident Fund money the investment must be as specified in the Provident Fund SchemeCorrect
  2. BIt may invest freely without any conditions
  3. CIt cannot invest any moneys and must hold them as cash
  4. DIt may invest only with the prior approval of the Tribunal

Explanation

Section 120(2) allows investment of moneys not immediately required, subject to conditions prescribed by the appropriate Government, and the proviso says that for Provident Fund, Pension Fund or Insurance Fund the investment, reinvestment or realisation shall be specified in the relevant scheme. Free investment ignores both conditions.

Did you get it right without looking?

One question tells you little. A timed set on Social Security Legislations shows your real accuracy, how long you take and where you lose marks.

Practise Social Security LegislationsFree diagnostic mock

More Social Security Legislations questions