Retirement fund physique Employees’ Provident Fund Organisation, on Monday, mentioned it has launched Rs 868 crore pension along with Rs 105 crore arrear on account of restoration of commuted worth of pension.

“This is a historic step for the profit of pensioners underneath the Employees’ Pension Scheme-95,” it added.

ET had first reported final month that the federal government will begin disbursing commuted pension from May as all procedural formalities have been put in place in all these months.

The authorities, had, in February this yr notified the restoration of full pension after 15 years of retirement for pensioners who’ve commuted half of their pension on the time of retirement.

This has resulted in a considerable enhance in pension for these Employees Provident Fund Organisation (EPFO) pensioners who retired earlier than September, 26, 2008 and had opted for partial commutation of pension. Commutation of pension will price teh authorities Rs 1500 crore.

The greater pension profit shall be restored after 15 years from the date of receiving commuted pension on the time of retirement. This means a person who retired on April 1, 2005, can be eligible to obtain the profit of greater pension after 15 years i.e. from April 1, 2020.

As per Employees’ Pension Scheme (EPS) guidelines, an EPFO member who retired earlier than September 26, 2008 may get most one-third of pension as lump-sum i.e. commuted pension and remaining two-thirds was paid as month-to-month pension to an worker for his/her lifetime. As per present EPF guidelines, EPFO members should not have an choice to obtain the commutation profit.

EPFO is an organisation underneath labour ministry that administers EPF and EPS schemes. The Central Board of Trustees (CBT) of EPFO had in its assembly held on August 21, 2019 accepted the proposal to revive the complete month-to-month pension (for the above talked about workers).