EPFO approved changes in Employees' Pension Scheme to restore commutation of pension

Providing relief to 6.3 lakh pensioners, retirement fund body EPFO has approved a proposal to restore commutation, or advance part-withdrawal, under the Employees' Pension Scheme.

The move would benefit the pensioners who had opted for commutation and got a lump-sum amount at the time of retirement before 2009. The provision for commutation of pension was withdrawn by the EPFO in 2009.

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

"In a major decision, the (EPFO's apex decision-making body) Central Board of Trustees (CBT) in a meeting held at Hyderabad on August 21, 2019, approved proposal to recommend for amendment in EPS-95 for restoration of commuted value of pension to pensioners after 15 years of drawing commutation, which will benefit about 6.3 lakh pensioners," according to a statement by the EPFO.

Bharatiya Mazdoor Sangh General Secretary Virjesh Upadhyay told PTI that there was a demand for restoration of commutation of pension. "Earlier under EPS-95 (Employees' Pension Scheme, 1995), members were able to commute one-third of their pension for 10 years, which was restored after 15 years. This facility is available to government employees."