NEW DELHI :
Subscribers of the Employees’ Provident Fund Organisation (EPFO) who took part of their monthly pension as lumpsum in advance, referred to as pension commutation, will now get full pension after completion of 15 years of service. The labour ministry has issued a notification allowing restoration of normal pension in cases of grant of commutation. The move is likely to benefit around 6.3 lakh pensioners under the Employees Pension Scheme (EPS), 1995.
5 things to know about new pension rule:
1) The normal pension in respect of those EPFO members who availed the benefit of commutation of pension on or before 25th September 2008 shall be restored after completion of 15 years from the date of such commutation.
2) EPFO said it has come to its notice that some offices have restored normal pension after 15 years from the date of commutation in compliance with the court orders but before the notification was issued. Hence, while releasing the arrears an account of the restoration of normal pension, it must be ensured that payment of benefits is not more than once in order to avoid any overpayment.
3) Under EPS-95, EPFO members were allowed to commute one-third of their pension and the reduced amount was given in lump sum. This facility is still available to certain categories of government employees.
4) As many as 6.3 lakh pensioners who opted for commutation of their pension and got a lump sum at the time of retirement from their pension fund on or before September 25, 2008 would benefit from the decision.
5) The notification came into force from February 2020 for which the government has amended the Employees’ Pension Scheme run by the EPFO.