The Government on February 20, 2020, has notified the restoration of full pension after 15 years of retirement for pensioners under the Employee Provident Fund (EPF) Scheme who have commuted part of their pension at the time of retirement.
The move is expected to result in a substantial increase in pension for those Employees Provident Fund Organisation (EPFO) pensioners who retired before September 26, 2008, and had opted for partial commutation of pension which is about 6.3 lakh pensioners. The higher/full pension benefit will be restored after 15 years from the date of receiving a commuted pension at the time of retirement.
According to Economic Times, the new notification will benefit such employees as it would lead to the restoration of full (higher) pension after 15 years. Therefore, an individual who retired on April 1, 2005, would be eligible to receive the benefit of higher pension after 15 years i.e. from April 1, 2020.
This proposal to restore the full monthly pension for EPS pensioners who opted for commutation was approved by the EPFO in its Central Board of Trustees meeting held on August 21, 2019.
The EPFO in its statement dated August 21, 2019, said: “In a major decision, the (EPFO’s apex decision-making body) Central Board of Trustees (CBT) in a meeting held at Hyderabad on August 21, 2019, approved proposal to recommend for amendment in EPS-95 for restoration of commuted value of pension to pensioners after 15 years of drawing commutation, which will benefit about 6.3 lakh pensioners”.
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