Employees’ Provident Fund Organisation has approved a proposal to restore commutation, or advance part-withdrawal, under the Employees Pension Scheme.
This will benefit 6.3 lakh pensioners who had opted for commutation and got a lump-sum amount at the time of retirement before 2009. EPFO had withdrawn the provision for commutation of pension in 2009.
Under the system of commutation, monthly pension used to be cut by one-third for the next 15 years; the amount cut would be given in lump sum. After the 15 years, the pensioners would get start getting the full pension.
The EPFO board has also approved the nomination of members from employers' and employees' side in a committee that will appoint a separate agency to review the working of portfolio managers, and assist the investment committee in redemption of ETFs.
The trustees approved the decision to choose the exchange-traded funds (ETF) through public bidding by 31st October 2019, and extended the term of the SBI MF and UTI MF till then.
The CBT also approved the proposal to divide the fund allocation equally (in the ratio of 50:50) between Nifty 50 and Sensex ETFs.