NEW DELHI :
Accepting a long standing demand of pensioners, the Employees' Provident Fund Organsation (EPFO) has released ₹105 crore arrear on account of restoration of commuted value of pension. In a statement, the labour ministry announced that it has released a total of ₹868 crore of pension.
As a result, pensioners who commuted their pension on retirement (reduction in pension in exchange for a lumpsum amount) will now get full pension after 15 years of retirement.
On the recommendation of Central Board of Trustees of EPFO, the government has 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. This is a historical step for the benefit of pensioners under EPS-95," the ministry said.
The move is likely to benefit around 6.3 lakh pensioners under the Employees Pension Scheme (EPS), 1995 under which they were allowed to commute one-third of their pension and the reduced amount was given in lump sum at the time of retirement from their pension fund. This facility is still available to certain categories of government employees.
"The normal pension in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of this scheme, on or before the 25th day of September, 2008, shall be restored after completion of fifteen years from the date of such commutation," an EPFO notification had said earlier. The provision for pension commutation of pension was withdrawn by the EPFO but restored later on for all those who opted for it on or before September 25, 2008.