The Employees Provident Fund Organisation (EPFO) released Rs 868 crore pension along with Rs 105 crore arrear on account of restoration of commuted value of pension by the central government, the Ministry of Labour and Employment announced, here on Monday. Earlier the central government accepted the EPFO Trust''s recommendation on one of the longstanding demands of workers to allow restoration of commuted value of pension after 15 years, allowing pensioners receive enhanced pension.
Without the provision for commuted pension, pensioners continued to receive reduced pension lifelong. "This is a historical step for the benefit of pensioners under EPS-95," the Ministry said.The Employee''s Pension Scheme (EPS 95) was rolled out in 1995. Initially, the ceiling was Rs 5,000, which was raised to Rs 6,500 in 2011 and then to Rs 15,000 in 2014. The EPFO caters to more than 65 lakh pensioners through its 135 regional offices. The EPFO employees processed May pension and ensured its credit in the pensioners'' bank accounts on schedule, battling all odds during the Covid-19-induced lockdown. Finance Minister Nirmala Sitharaman recently announced a reduction of EPF contribution from 12 per cent to 10 per cent for both employer and employees as part of the Atmanirbhar Bharat Package as a means to provide relief to employers and also to increase the take-home pay of employees.