Retirement fund body Employees Provident Fund Organization (EPFO) released Rs 868 crore pension along with Rs 105 crore arrears on account of restoration of commuted value of pension, EPFO said in a press release. 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, EPFO said.
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The provision for pension commutation has been withdrawn by EPFO.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.
In August 2019, the EPFO's apex decision-making body -- Central Board of Trustees headed by the labour minister -- approved the proposal to restore commutation of pension for 6.3 lakh pensioners who had opted for the benefit.
EPFO has processed pension payment for its more than 65 lakhs pensioners during the Covid-19.