Over 6 lakh pensioners are set to benefit as the Labour Ministry on February 20 notified the Employees' Provident Fund Organisation's (EPFO) decision to restore commutation under Employees' Pension Scheme (EPS).
Pension commutation refers to advanced part-withdrawal from the fund by subscribers, and monthly pension is cut by one-third for the next 15 years. After 15 years, pensioners were entitled to get the full pension.
As per a ministry notification, the EPS was amended to restore pension of individuals who opted for pension commutation on or before September 25, 2008. This will benefit 6.3 lakh pensioners.
It states: "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 September 25, 2008, shall be restored after completion of 15 years from the date of such commutation."
In August 2019, the EPFO's apex decision-making body -- Central Board of Trustees headed by the labour minister -- approved the proposal to restore commutation of pension for 6.3 lakh pensioners who opted for it.
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.
Earlier, under EPS-95, members were allowed to commute one-third of their pension for 10 years, which was restored after 15 years. This facility is still available to certain categories of government employees.
(With inputs from PTI)