New Delhi: The Employees Provident Fund Organization (EPFO) will start giving full pension to 6.3 lakh pensioners who opted for communication at the time of retirement from May. This will provide great relief to EPFO pensioners across the country.
The central government changed the pension rules of the EPFO on 20 February this year. With this, the full pension system was re-implemented 15 years after retirement to pensioners who opted for committing pension at the time of retirement.
This decision will benefit 6.3 lakh pensioners who retire before 26 September 2008. The government will be burdened with this decision by about Rs 1500 crore. Under the current rules of EPF, EPFO members do not get the option to get communication benefits.
What is the option of communication in a pension?
The government gives the option of commutation to pensioners if they wish to take part in their monthly pension outright at the time of retirement. Under this, an employee can get one-third of the basic pension he gets at the time of retirement.
The government deducts from its pension every year to compensate for the lump sum pension. Till this year, this deduction was done from pensioner’s pension till the end, but now in the new system, it will be done only for 15 years after retirement. After this, the employee will be paid his full pension.
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