A higher pension would carry a huge financial burden even if the unclaimed amount in the EPFO is used for this purpose, EPFO officials said.
The move will come into effect retrospectively from January 1, 2020.
The decision will cost the exchequer Rs 16,000 crore, Information and Broadcasting Minister Prakash Javadekar said while briefing media on the decisions taken by the Cabinet.
Bhaskaran had been included in the panchayat’s list of expired persons last year too.
The finance minister is set to meet the pensioners' organisations on September 22 with an 'open mind' and arrive at a consensus before going ahead with the move.