Goon News for EPS 95 Pensioners: EPFO Restores Commuted Value Of Pension, Releases Rs 868 Crore Pension

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EPFO released Rs 868 crore pension along with Rs 105 crore arrear on account of restoration of commuted value of pension.

On the recommendation of Central Board of Trustees (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.This is a historical step for the benefit of pensioners under EPS-95.

EPFO has more than 65 lakhs pensioners catered through its 135 regional offices. EPFO officers and staff battled all odds during this Covid-19 lockdown period and processed pension payment for May,2020 to ensure credit of pension in the bank account of pensioners on schedule.

Pension commutation refers to part-withdrawal of fund in advance by a subscriber, who then gets reduced pension amount for 15 years. With the ministry's decision, these pensioners are entitled to receive their full pension after completion of 15 years.

The provision for pension commutation has been withdrawn by EPFO. Now, the facility has been restored for all those who opted for it on or before September 25, 2008.

Under the commutation, monthly pension used to be cut by one-third for the next 15 years and the reduced amount was given in lump sum. After 15 years, pensioners were entitled to get the full pension.