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    6.3 lakh pensioners, who opted for commutation, to receive higher pension now, says report

    6.3 lakh pensioners, who opted for commutation, to receive higher pension now, says report

    6.3 lakh pensioners, who opted for commutation, to receive higher pension now, says report
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    By CNBC-TV18  IST (Updated)

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    Currently, under the EPF rules, EPFO members do not have any option to receive the commutation benefit.

    Full pension after 15 years of retirement will soon be restored for pensioners, reported Economic Times citing a Labour Ministry notification. As a result, around 6.3 pensioners covered under the Employees' Provident Fund Organisation (EPFO) will see a hike in their monthly pension amount, the report said. EPFO is the nodal agency that monitors the Employees' Provident Fund (EPF) contributions and Employees' Pension Scheme (EPS).
    Pensioners who retired before September 26, 2008, and had opted for partial commutation of pension will likely see a substantial hike in their pension amount. The full/higher pension benefit will be restored after 15 years from the date of receiving a commuted pension at the time of retirement, the report added.
    Commuted pension means a lump sum payment received by the individual upfront in lieu of the periodic pension.
    Currently, under the EPF rules, EPFO members do not have any option to receive the commutation benefit. According to the earlier rule, EPFO members who retired before September 26, 2008 received one-third of their pension as lump sum. The remaining two-thirds was paid as monthly pension to an employee for his/her lifetime.
    The recent notification of Labour Ministry will mean a higher pension amount for employees who had received commuted pension earlier. For example- an individual who retired on April 1, 2005, would be eligible to receive the benefit of higher pension after 15 years i.e. from April 1, 2020, the Economic Times report said.
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