Retirement fund body Employees’ Provident Fund Organisation (EPFO) has approved a proposal to restore commutation of pension, or advance part-withdrawal, under the Employees’ Pension Scheme.
This move will be benefited the pensioners who had opted for commutation and got a lump sum amount at the time of retirement before 2009. The provision for commutation pension was withdrawn in the year of 2009.
“In a major decision, the [EPFO’s apex decision-making body] Central Board of Trustees in a meeting held at Hyderabad on August 21, approved a 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.
“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,” said Bharatiya Mazdoor Sangh general secretary Virjesh Upadhyay
Moreover, the trustees approved the decision to choose the exchange-traded fund (ETF) manufacturers through public bidding by October 31, 2019, and extended the term of the present ETF manufacturers (SBI MF and UTI MF) till then.