EPFO Alert: Modi Government's big move for 6.3 lakh pensioners; here is how
EPFO Alert: Modi Government at the Centre has decided to implement the Employees' Provident Fund Organisation decision to restore pension commutation under EPS.
EPFO Alert: The Narendra Modi Government at the Centre has decided to implement the Employees' Provident Fund Organisation (EPFO) decision to restore pension commutation under the EPS (Employees' Pension Scheme). The Ministry of Labour and Employment took a decision in this regard. This move is expected to benefit around 6.3 lakh pensioners. Pension commutation refers to the partial Provident Fund (PF) withdrawal by an EPFO subscriber, who then gets reduced pension amount for 15 years.
Pension notification
The Ministry of Labour and Employment announced about its decision through the notification citing, “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.” Photo: Reuters
6.3 lakh pensioners to benefit
The notification went on to add that as many as 6.3 lakh pensioners would benefit from the decision. These pensioners had opted for commutation of their pension and got a lump sum at the time of retirement from their pension fund on or before 25th September 2008. Photo: Reuters
Full pension after 15 years
With this decision by the Narendra Modi Government, the pensioners who prefer to part-withdrawal of the fund in advance would receive their full pension after the completion of 15 years. Photo: PTI
Govt Amends Employees Pension Scheme (EPS) run by EPFO
The Ministry of Labour and Employment, on 20th February 2020, had notified the EPFO's decision to restore pension of those pensioners who opted for commutation of their pension on or before 25th September 2008. The Government of India has already amended the Employees Pension Scheme (EPS) run by EPFO. Photo: Reuters
Who Is Eligible?
The provision for pension commutation of pension was withdrawn by the EPFO. Now, the facility has been restored for all those who opted for it on or before September 25, 2008. Under the commutation, monthly pension used to be cut by one -third for the next 15 years and the reduced amount was given in lump sum. After 15 years, pensioners were entitled to get the full pension. Photo: Reuters
EPFO Committee Recommendation
An EPFO panel had recommended for amendment in EPS-95 (Employees’ Pension Scheme, 1995) for the restoration of commuted value of the pension to pensioners after 15 years of drawing commutation. Earlier, under EPS-95, members were allowed to commute one-third of their pension for 10 years, which was restored after 15 years. This is still available to certain categories of government employees. Photo: Reuters