Retirement fund frame Staff Provident Fund Group (EPFO) launched Rs 868 crore pension along side Rs 105 crore arrears as a result of recovery of commuted worth of pension, EPFO mentioned in a press unlock. At the advice of Central Board of Trustees (EPFO), the Govt of India authorised one of the most lengthy status calls for of employees to permit recovery of commuted worth of pension after 15 years. Previous there used to be no provision for recovery of commuted pension and the pensioners endured to obtain decreased pension as a result of commutation lifelong, EPFO mentioned.
Pension commutation refers to part-withdrawal of fund prematurely through a subscriber, who then will get decreased pension quantity for 15 years. With the ministry’s resolution, those pensioners are entitled to obtain their complete pension after crowning glory of 15 years.
The availability for pension commutation has been withdrawn through EPFO. Now, the power has been restored for all those that opted for it on or sooner than September 25, 2008.
Below the commutation, per month pension was once minimize through one-third for the following 15 years and the decreased quantity used to be given in lump sum. After 15 years, pensioners have been entitled to get the total pension.
In August 2019, the EPFO’s apex decision-making frame — Central Board of Trustees headed through the labour minister — authorized the proposal to revive commutation of pension for six.three lakh pensioners who had opted for the convenience.
EPFO has processed pension cost for its greater than 65 lakhs pensioners all through the Covid-19.