Implementation of EPFO's decision to leverage commutation facilities begins

(PTI) New Delhi, Ta. February 25, 2020, Tuesday

The Labor Ministry has begun implementing the EPFO's decision to provide commutation benefits to 6.3 lakh pensioners. The government's decision will benefit 6.3 lakh pensioners from EPFO.

The Ministry of Labor said in a notification dated February 20, 2020 that under the Employee Provident Fund (EPF) scheme, pensioners would get more pensions who have opted for full pension facility after 15 years of retirement.

This rule is for those who have reduced their pension amount at retirement. The Ministry of Labor has stated that employees belonging to EPFO ​​will be able to get commutation benefits from the pension fund under the pension scheme.

Under this facility, the pensioner is initially paid some portion of the pension together. Then, for the next 15 years, his pension will be reduced by one-third. He is given a full pension after 15 years.

It is pertinent to mention that the Central Board of Trustees, the highest decision-making body of the EPFO, approved the proposal to provide commutation benefits to the 6.3 lakh pensioners who benefitted from the facility at a meeting held on August 21, 2019. The Employees Provident Fund (EPF) is a scheme to provide salaried employees with financial benefits after retirement.

Which is run by EPFO. Its interest rate is determined by the government. Each month, the company deducts 12% of the base salary from the employee's salary and deposits it in the EPF. Along with the employee, the company also deposits 12% of the base salary into the employee's EPF account.