The Ministry of Labour and Employment vide a Notification dated 20th February 2020 has published the Employees’ Pension (Amendment) Scheme 2020, to provide for restoration commuted pension to normal pension. That means EPS pensioners to get normal pension even after getting a reduced pension as because he availed commutation of pension.
Employees’ Pension (Amendment) Scheme 2020 has inserted a new Paragraph 12B to the Employees’ Pension Scheme, 1995 which provides that normal pension in respect of those members who availed the benefit of commutation of pension under the paragraph 12A of this Scheme, on or before the 25th day of September, 2008, shall be restored after completion of fifteen years from the date of such commutation.
Pension commutation refers to part-withdrawal of fund in advance by a pensioner. Such commutation was allowed for maximum of 1/3rd of monthly pension. Remaining 2/3rd continued to be received as monthly pension at reduced rate by the employee. The provision of such commutation under Para 12A of the Pension Scheme deleted vide GSR 688(E), dated 26.9.2008.
With the current Notification, the time limit to receive reduced pension is fixed at 15 years for the pensioners who availed the benefit of commutation of pension on or before the 25th day of September 2008. Thus, such pensioners would receive their full pension after completion of 15 years from the date of availing commuted pension.