Good news for EPS pensioners! The Union Minister of Labour and Employment and Chairperson, Central Board of Trustees, EPF has given the green light to the proposal for a Centralized Pension Payment System (CPPS) for the Employees’ Pension Scheme, 1995.
This centralized system at the national level will allow pension disbursement through any bank branch across the country, representing a significant change.
The facility will be introduced as part of EPFO‘s ongoing IT modernization project, Centralized IT Enabled System (CITES 2.01), starting from January 1, 2025. In the subsequent phase, CPPS will facilitate a smooth transition to the Aadhaar-based payment system (ABPS).
Commenting on this new step, Union Minister Dr. Mansukh Mandaviya said, “The approval of the Centralized Pension Payment System (CPPS) marks a significant milestone in modernization of the EPFO. By enabling pensioners to receive their pensions from any bank, any branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism. This is a crucial step in our ongoing efforts to transform the EPFO into a more robust, responsive, and tech-enabled organization, committed to serving the needs of its members and pensioners better.”
The CPPS is anticipated to benefit over 78 lakh EPS pensioners of EPFO by leveraging advanced IT and banking technologies, providing a more efficient and user-friendly experience for pensioners.
The new system will ensure pension disbursement throughout India without the need for transferring Pension Payment Orders (PPO) between offices, even when pensioners relocate or change their bank or branch. This will greatly benefit pensioners who return to their hometowns after retirement.
The CPPS represents a significant shift from the current decentralized pension disbursement system, where each Zonal/Regional Office of EPFO maintains separate agreements with only a few banks.
Pensioners will no longer need to visit the branch for verification at the commencement of their pension, and the pension will be credited immediately upon release. Moreover, EPFO anticipates a substantial reduction in pension disbursement costs after transitioning to the new system.
This centralized system at the national level will allow pension disbursement through any bank branch across the country, representing a significant change.
The facility will be introduced as part of EPFO‘s ongoing IT modernization project, Centralized IT Enabled System (CITES 2.01), starting from January 1, 2025. In the subsequent phase, CPPS will facilitate a smooth transition to the Aadhaar-based payment system (ABPS).
Commenting on this new step, Union Minister Dr. Mansukh Mandaviya said, “The approval of the Centralized Pension Payment System (CPPS) marks a significant milestone in modernization of the EPFO. By enabling pensioners to receive their pensions from any bank, any branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism. This is a crucial step in our ongoing efforts to transform the EPFO into a more robust, responsive, and tech-enabled organization, committed to serving the needs of its members and pensioners better.”
The CPPS is anticipated to benefit over 78 lakh EPS pensioners of EPFO by leveraging advanced IT and banking technologies, providing a more efficient and user-friendly experience for pensioners.
The new system will ensure pension disbursement throughout India without the need for transferring Pension Payment Orders (PPO) between offices, even when pensioners relocate or change their bank or branch. This will greatly benefit pensioners who return to their hometowns after retirement.
The CPPS represents a significant shift from the current decentralized pension disbursement system, where each Zonal/Regional Office of EPFO maintains separate agreements with only a few banks.
Pensioners will no longer need to visit the branch for verification at the commencement of their pension, and the pension will be credited immediately upon release. Moreover, EPFO anticipates a substantial reduction in pension disbursement costs after transitioning to the new system.