New Year gift of EPFO from Govt- Good news is here

New Year 2020 is almost here, and here is good news from Modi government from EPFO. According to a latest update, PM Narendra Modi-led Central government is going to implement a big decision from January 1, 2020. 

The labour ministry will enforce the retirement fund body EPFO's decision to restore pension commutation, or advance part-withdrawal, under the Employees' Pension Scheme (EPS) from January 1, 2020, according to a report by news agency PTI.

PTI news agency quoting a source says reports that the labour ministry would issue a notification on January 1, 2020, to implement the Employees' Provident Fund Organisation's (EPFO) decision to restore commutation, or advance part-withdrawal, under the Employees' Pension Scheme.

Reportedly, the big move by Modi 2.0 will benefit 630,000 pensioners.

It is important to note here that these 630,000 pensioners had opted for commutation of their pension. Moreover, these pensioners got a lump sum amount at the time of retirement from their pension accumulations or fund before 2009. The provision for commutation of pension was withdrawn by the EPFO in 2009.

What is pension commutation or advance part-withdrawal?

Under the Pension commutation or advance part-withdrawal, monthly pension used to be cut by one-third for the next 15 years and the reduced amount was given in lump sum. After the 15 years, pensioners were entitled to get the full pension.

EPFO recommendation?

An EPFO panel had recommended for amendment in EPS-95 (Employees' Pension Scheme 19995) for restoration of commuted value of pension to pensioners after 15 years of drawing commutation.