Pension Rule Changed: There is big news for the pensioners of Employees’ Pension Scheme (EPS) 1995. Pensioners coming under the Employees’ Pension Scheme (EPS) 1995 will be able to take pension from any bank or its branch in India from January 1, 2025.
Pension Rule Changed: There is big news for the pensioners of Employees’ Pension Scheme (EPS) 1995. Pensioners coming under the Employees’ Pension Scheme (EPS) 1995 will be able to take pension from any bank or its branch in India from January 1, 2025. The Employees’ Provident Fund Organization (EPFO) has approved the Centralized Pension Payment System (CPPS) for this service.
What is Centralized Pension Payment System (CPPS)?
CPPS is a national level system that provides pensioners the service of taking pension from any bank or branch in India. This system has been started under the Centralized IT Enabled System (CITES 2.01) of EPFO.
Which EPS pensioners will benefit?
More than 78 lakh EPFO EPS pensioners will get the benefit of centralized pension payment system. This service will be especially useful for those pensioners who have shifted to their hometown or any other place after retirement.
Need for PPO transfer eliminated
After the implementation of this system, pensioners will not need to transfer Pension Payment Order (PPO) when changing bank or branch or transfer.
When will it be implemented?
This new service will come into effect from 1 January 2025.
Big step of EPFO
Union Labor Minister Dr Mansukh Mandaviya said that the approval of CPPS is an important step towards the modernization of EPFO. It will solve the problems of pensioners and make pension distribution easy and effective. This is a significant progress towards making EPFO a technologically competent and responsive organization.
Contribution to EPS
Both employees and employers contribute to EPS. Employees deposit 12% of their basic salary, dearness allowance and retaining allowance in EPF. Employers also contribute 12%, of which 8.33% goes to EPS and 3.67% to EPF. Only those members can avail the EPS scheme whose monthly basic salary is not more than Rs 15,000. In the direction of modernization of EPFO, Aadhaar based payment system (ABPS) will be started after CPPS.
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