The labour ministry has now implemented retirement fund body EPFO’s decision to restore pension commutation under the Employees’ Pension Scheme This step is going to benefit 6.3 lakh pensioners.
Pension commutation is a part-withdrawal of fund in advance by a subscriber, after which he will get a reduced pension amount for 15 years.
With this decision by ministry, pensioners will get their full pension after completion of 15 years.
On February 20, labour ministry has announced that the decision of the Employees’ Provident Fund Organisation (EPFO) to restore pension of those who had opted for commutation of their pension on or before September 25, 2008.
For this, the Employees’ Pension Scheme — run by the EPFO — has been modified.
“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 the 25th day of September, 2008, shall be restored after completion of fifteen years from the date of such commutation,” as per the notification.