Employees Provident Fund Organization (EPFO) announced that it has released Rs. 868 crore of pensions including an arrear of Rs. 105 crore to pensioners under the Employees’ Pension Scheme.
This arrear was for the restoration of commuted value of the pension. People who have commuted part of their pension at the time of retirement will get restoration of full pension after 15 years of retirement as per EPFO. This arrear will benefit 630,000 pensioners in terms of a higher pension.
“On the recommendation of Central Board of Trustees (of the EPFO), the Government of India accepted one of the long standing demands of workers to allow restoration of commuted value of pension after 15 years. Earlier there was no provision for restoration of commuted pension and the pensioners continued to receive reduced pension on account of commutation lifelong,” the retirement body said in a statement, terming the move as a “historic step for the benefit of pensioners under EPS-95″.
There are more than 6.5 million pensioners served by EPFO through 135 regional offices. As per data, new rules will benefit some 630,000 pensioners.These rules will increase the outgo of the union government by nearly Rs. 1300 crore per annum.