EPFO board recommends extending proportionate pension benefits to members

Decision to extend pension scheme beyond 35 years of service taken in 232nd CBT meet on Monday; withdrawal benefits available even to those who've contributed for less than six months

The Central Board of Trustees (CBT) of the Employee Provident Fund Organisation (EPFO) has recommended extending the proportionate pension benefits to members of the Employee's Pension Scheme (EPS) for service beyond the stipulated 34 years at present.

The decision on the extension of the pension scheme from “less than 35 years” of service to “less than 42 years” of service was taken in the 232nd CBT meeting held on Monday under the chairmanship of Union Labour Minister Bhupender Yadav.

It was also decided to extend the withdrawal benefits to members even if the person has contributed for less than six months to the pension scheme.

R Karumaliyan who represents the Centre of Indian Trade Unions (CITU) in the CBT said the move would benefit thousands of workers who had longer tenures of service.

“Earlier, only 34 years of a worker’s working life was covered under the EPS. This move to increase the limit to 42 years will benefit a lot of young workers who join the workforce at a younger age”, he explained.

Among other things, a redemption policy for the EPFO's Exchange Traded Fund units purchased during the period of calendar year 2018 was also approved.