The central government has changed
the pension rules. With this, the pensioners who opted for commute pension at
the time of retirement will re-apply full pension after 15 years of retirement.
The Ministry of Labor has issued a notification to the new rules. This decision
will benefit 6.3 lakh pensioners who retire before 26 September 2008. With the
new notification, the full pension system will be re-implemented for EPFO
employees 15 years after retirement. If an employee retires on 1 April 2005, he
will get more pension after 15 years i.e. from 1 April 2020.
Under the Employees Pension Scheme
(EPS) rules, EPFO members who retire before 26 September 2008 can take a
maximum of one-third of the total amount of pension as a lump sum (commuted),
while the remaining two to three of their lifetime pension. Used to be as under
the current rules of EPF, EPFO members do not get the option to get
communication benefits.
Under Section 12A of the Employee Pension
Scheme, an employee could claim one-third commuted pension (lump sum) instead
of monthly pension. Now as per Section 12B added on February 20, 2020,
employees who have taken commuted pension under Section 12A will get the
benefit of full pension after 15 years.
During retirement, an employee can
get 40% of the basic pension he commits. Simply put, the employee takes 40% of
his seven-year pension in advance from the government. The government deducts
8,000 rupees from his pension every year and recovers the pension given in
advance. Earlier these deductions were made till the pensioner's pension till
the end, but now in the new system, it will be recovered for 15 years of
retirement. After this, the employee is paid his full pension.
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