EPFO Introduces Centralized Pension Payment System: A Game-Changer for Pensioners
MAS Team | 06 September 2024
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The Union Minister of Labour and Employment and Chairperson of the EPF's Central Board of Trustees has approved the proposal for a Centralized Pension Payment System (CPPS) for the Employees' Pension Scheme, 1995. This groundbreaking system, set to launch on 1 January 2025, will allow EPS pensioners to receive their pensions from any bank, branch, or location across India, as announced in a Press Information Bureau release on 4 September 2024.
 
The CPPS represents a significant shift from the current decentralized pension disbursement system, which is limited to arrangements with only three to four banks per EPFO Zonal/Regional Office. This new national-level centralized system is expected to benefit over 78 lakh EPFO EPS pensioners by providing a more efficient, seamless, and user-friendly experience through advanced IT and financial technology. For retirees who relocate to their hometown after retirement, this would be a huge relief.
 
Key features of the CPPS include:
1. Elimination of the need for pensioners to visit bank branches for verification when benefits commence.
2. Immediate pension credit upon release.
3. Significant cost savings in pension payouts for EPFO.
4. Integration with EPFO's Centralized IT Enabled System (CITES 2.01).
5. Future implementation of an Aadhaar-based payment system (ABPS).
6. Pension delivery across India without the need for transferring Pension Payment Orders (PPO) between offices, even if pensioners relocate or switch banks.
 
According to the PIB release, Union Minister Dr. Mansukh Mandaviya hailed the CPPS as a significant milestone in EPFO's modernization, addressing long-standing challenges faced by pensioners and ensuring a more robust, responsive, and tech-enabled organization.
 
To be eligible for benefits under the Employees' Pension Scheme (EPS), individuals must meet the following criteria:
  • Be a member of EPFO
  • Have completed 10 years of service
  • Reach the age of 58 (or 50 for reduced pension)
  • Option to defer pension for two years (up to 60 years) for an additional 4% rate per year.
 
The CPPS is set to revolutionize pension disbursement in India, offering unprecedented flexibility and convenience to EPS pensioners, particularly benefiting those who relocate to their hometowns after retirement.
 
Dear Investor,
In case of any grievance / complaint :
  • Please contact Compliance Officer Shraddha Mhatre at [email protected] and Phone No. - 91-22-35131664.
  • You may also approach CEO Debashis Basu at email- id [email protected] and Phone No. - 91-22-35131664.