EPFO releases Rs 868 crore pension along with Rs 105 crore arrears

New Delhi: The EPFO has released a pension of Rs 868 crore with arrears of Rs 105 crore. This will benefit millions of pensioners. This feature has now been restored to those who opted for it on or before September 25, 2008.

Under pension transfers, the pension is reduced by one-third for the next 15 years and the reduced amount is paid once. After 15 years, the pensioner is entitled to the full amount.

By August 2019, the Central Board of Trusts, the apex decision-making body of the EPFO under the chairmanship of the Labour Minister, had approved a proposal to restore communication facilities to 6.3 lakh pensioners.

What will happen now - according to a statement issued by the government, there was no provision for restoration of pensions earlier and pensioners received a reduced lifetime pension in exchange for communication.

The ministry said it was a historic step taken under the Employees' Pension Scheme 1995 for the benefit of pensioners. EPFO provides pensions to 65 lakh pensioners through its 135 regional offices.

Earlier in February, the Ministry of Labour had implemented the EPFO's decision to restore the pension communication system under EPS-95. This will benefit 6.3 pensioners.

A partial withdrawal from the pension fund by the customer provides a lower pension for 15 years. This arrangement is called pension transfer. Following the decision of the Ministry, these pensioners are also entitled to receive full pension on completion of 15 years.