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EPFO To Distribute Restored Pension From May

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For those retirees who opted for commutation of pension among the different pay-out option, the government will start distributing the entire pension corpus from May.

 

In this pay-out option, pensioners have been given the choice to receive a part of their monthly pay-out as lump sum while retiring from working life.

EPFO To Distribute Restored Pension From May

Earlier in February, the centre notified the restoration of full pension, this time in a span of 15 years.

The cost of this payout hall be Rs. 1500 crore and may benefit 6.3 lakh pensioners on a monthly basis.

"While the scheme was notified in February, it took us a few months to make related changes in the software. Now, we are ready to start disbursal," a senior government official is quoted as saying in a leading business daily.

Individuals who left job prior to September 26, 2008 to largely benefit

Those who had left service before September 26, 2008 and opted for pension commutation, say for instance those who left their service on April 1, 2005, will get a higher pension pay out after a gap of 15 years.

 

So according to the EPS rules, such retirees will be given 1/3 rd of their pension as lumpsum while the remaining 2/3 rd was disbursed as monthly pension.

Notably, currently the benefit of commutation in pension is no longer available for EPF subscribers.

GoodReturns.in

Read more about: pension eps epfo
Story first published: Tuesday, April 28, 2020, 12:35 [IST]
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