For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Change In EPS 1995 To Benefit More EPFO Members

|

As per the recent change in Employees Pension Scheme (EPS) 1995 notified by the government on February 20 as many as 6 lakh pensioners are said to benefit. Accordingly, eligible members of EPFO on opting for pension commutation will get normal pension. Let us understand in detail how the move or change in the scheme would benefit and whom?

Change In EPS 1995 To Benefit More EPFO Members
 

What is Commutation of Pension?

The EPS scheme allowed members eligible to receive pension to take their monthly pension amount as lumpsum in advance. This is called pension commutation. In accordance with the earlier rules, an employee could take up to one-third of the monthly pension and avail 100 times of the amount as lumpsum and thereafter go for lowered monthly pension for the remaining life.

Say for instance: If the pension amount is Rs. 6000 and the subscriber opted for pension commutation then the amount he or she will get as lump sum will be 1/3 of 6000*100 or Rs. 2,00,000. And there on the monthly pension amount would be 2/3 of 6000 or Rs. 4000.

But since September 2008, commutation of pension i.e. the option to take monthly pension as lump sum was not available.

EPS Subscribers who Opted for Pension Commutation to Benefit

So with the change, EPFO subscribers who opted for pension commutation before September 2008 i.e. when the facility was withdrawn will get a higher pension amount after the term of 15 years gets completed from the date of such commutation.

This is to say that those subscribers who opted for commutation in August 2008 will get increased pension from 2023. And while those who had applied for the option as early as January 2005 or even before would have completed the 15 years term and hence would be eligible to get higher monthly pension.

GoodReturns.in

Read more about: epfo eps pf provident fund pension
Story first published: Thursday, February 27, 2020, 14:03 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more