EPFO releases ₹868 crore of pension including arrears1 min read . Updated: 01 Jun 2020, 08:12 PM IST
- The arrear was related to the restoration of commuted value of pension
- This will benefit 630,000 pensioners in terms of a higher pension
New Delhi: Employees Provident Fund Organization (EPFO) Monday said it has released Rs. 868 crore of pensions including an arrear of Rs. 105 crore to pensioners under the Employees' Pension Scheme.
The arrear was related to the restoration of commuted value of pension. It means the restoration of full pension after 15 years of retirement for pensioners who have commuted part of their pension at the time of retirement. This arrear will benefit 630,000 pensioners in terms of a higher pension.
“On the recommendation of Central Board of Trustees (of the EPFO), the Government of India accepted one of the long standing demands of workers to allow restoration of commuted value of pension after 15 years. Earlier there was no provision for restoration of commuted pension and the pensioners continued to receive reduced pension on account of commutation lifelong," the retirement body said in a statement, terming the move as a “historic step for the benefit of pensioners under EPS-95".
EPFO has more than 6.5 million pensioners served through 135 regional offices and the new rules will benefit some 630,000 pensioners. The new rules will increase the outgo of the union government by nearly Rs. 1300 crore per annum.
In February, the labour ministry had announced the decision of EPFO to restore pension of those pensioners who opted for commutation of their pension on or before September 25, 2008. The provision for pension commutation has been withdrawn but with the new rules, the facility has been restored for all those who opted for it before September 25, 2008.