EPFO alert! This Modi government decision has been implemented from Jan 1, 2020, to benefit lakhs of pensioners

In the last week of December, the labour ministry had announced that it will enforce the retirement fund body EPFO's decision to restore pension commutation, or advance part-withdrawal, under the Employees' Pension Scheme (EPS) from January 1, 2020.

PTI news agency quoting a source had reported that the labour ministry would issue a notification on January 1, 2020, to implement the Employees' Provident Fund Organisation's (EPFO) decision to restore commutation, or advance part-withdrawal, under the Employees' Pension Scheme.

As per the report, the big move by Modi 2.0 will benefit 630,000 pensioners.

Noteworthy, these 630,000 pensioners had opted for commutation of their pension.

Moreover, these pensioners got a lump sum amount at the time of retirement from their pension accumulations or fund before 2009. The provision for commutation of pension was withdrawn by the EPFO in 2009.

What is pension commutation or advance part-withdrawal?

Under the Pension commutation or advance part-withdrawal, monthly pension used to be cut by one-third for the next 15 years and the reduced amount was given in lump sum. After the 15 years, pensioners were entitled to get the full pension.

What was EPFO recommendation?

An EPFO panel had recommended for amendment in EPS-95 (Employees' Pension Scheme 1995) for restoration of commuted value of pension to pensioners after 15 years of drawing commutation.