The ministry statement said that the new system is a significant change from the existing pension distribution process, under which each regional/regional office of EPFO had to enter into separate agreements with only three-four banks.
Pensioners covered under the pension scheme of the Employees’ Provident Fund Organization (EPFO) have been given a big relief. They will be able to get their pension from any bank in the country from January 1, 2025. Labor Minister Mansukh Mandaviya gave this information on Wednesday. The Labor Ministry said in a statement that Mandaviya has approved the proposal for a centralized pension payment system (CPPS) for the Employees’ Pension Scheme (EPS) 1995. He is also the chairperson of the Central Board of Trustees (CBT), the apex decision-making body of EPFO. According to the statement, the centralized pension payment system will allow the distribution of pension through any bank or any branch across the country.
Pensioners will get convenience from this initiative
The minister said, the approval of CPPS is a milestone towards the modernization of the Employees Provident Fund Organization (EPFO). Under this, pensioners will be able to receive their pension from any bank, any branch anywhere in the country. This initiative resolves the long-standing problems of pensioners. This system ensures a seamless and efficient distribution system. ”He said that this is an important step towards our efforts to transform EPFO into a more robust, responsive and technology-enabled organization to better meet the needs of its members and pensioners.
Relief to those returning home after the job
The centralized pension payment system is expected to benefit more than 78 lakh EPS-95 pensioners of EPFO. The centralized system will ensure seamless distribution of pension across the country without the need to transfer the Pension Payment Order (PPO) from one office to another. This will be a big relief for those pensioners who move to their hometown after retirement. This facility will be launched from January 1, 2025 as part of EPFO’s ongoing information technology modernization project Centralized IT Integrated System (CITES 2.01). In the next phase, CPPS will bring a smooth transition to Aadhaar-based Payment System (ABPS).
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There will be no need to visit bank branch
The ministry statement said that the new system is a significant change from the existing pension disbursement process, under which each regional/regional office of EPFO had to enter into separate agreements with only three-four banks. It said that now pensioners will not need to visit the bank branch for verification at the time of pension commencement and the payment will be credited immediately upon release. Along with this, EPFO expects that the new system will significantly reduce pension disbursement costs.
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