New Delhi: The labour ministry has notified the restoration of full pension after 15 years of retirement for pensioners who’ve commuted a part of their pension on the time of retirement.
The transfer is predicted to learn 630,000 pensioners and considerably improve pensions for these members of the Staff Provident Fund Organisation (EPFO) who retired earlier than September 26, 2008 and had opted for partial commutation of pension.
The upper or full pension profit can be restored after 15 years from the date of receiving commuted pension on the time of retirement.
Based on Staff’ Pension Scheme (EPS) guidelines, an EPFO member who retired earlier than September 26, 2008, might get most one-third of his/her pension as lump-sum (commuted pension), whereas the remaining two-thirds was paid as month-to-month pension for his/her lifetime.
As per present EPF guidelines, EPFO members wouldn’t have an choice to obtain commutation profit. EPFO administers EPF and EPS schemes and comes beneath labour ministry.
This may profit such workers as it’s going to result in restoration of full (increased) pension after 15 years. As an illustration, a person who retired on April 1, 2005, can be eligible to obtain the advantage of increased pension after 15 years from April 1, 2020.
The Central Board of Trustees of EPFO in a gathering on August 21, 2019 accepted the proposal to revive the total month-to-month pension (for the abovementioned workers). In a significant choice, the Central Board of Trustees (EPFO’s apex decision-making physique) in a gathering held at Hyderabad on August 21, 2019, accepted a proposal to advocate for modification in EPS-95 for restoration of commuted worth of pension to pensioners after 15 years of drawing commutation, which can profit about 6.three lakh pensioners, the EPFO had mentioned.