In a major step to improve pension services, the Employees’ Provident Fund Organization (EPFO) successfully rolled out the new Centralized Pension Payments System (CPPS) under the Employees’ Pension Scheme 1995 in December 2024.
This reform ensures seamless pension disbursement for over 68 lakh pensioners across all 122 regional offices.
For December 2024, approximately ₹1,570 crore was disbursed under the centralized system, streamlining a process that previously relied on decentralized mechanisms.
Successful Pilot Phases
The CPPS was tested in two pilot phases before its full-scale implementation. The first pilot in October 2024 covered the Karnal, Jammu, and Srinagar regional offices, benefiting more than 49,000 pensioners with a total disbursement of ₹11 crore.
Building on this success, the second pilot in November 2024 expanded to 24 regional offices, reaching over 9.3 lakh pensioners and disbursing ₹213 crore.
These pilots demonstrated the system’s ability to simplify and standardize pension payments, paving the way for nationwide implementation.
Key Benefits of CPPS
Union Minister Dr. Mansukh Mandaviya hailed the rollout as a historic milestone for EPFO, highlighting the convenience, transparency, and efficiency it brings to pension services.
The CPPS enables pensioners to access their pensions from any bank or branch across India without requiring physical verification visits.
Unlike the earlier decentralized system, which relied on agreements with a limited number of banks, the centralized system ensures faster, hassle-free pension disbursement.
From January 2025, CPPS will allow pensioners to receive their pensions seamlessly, even if they move locations or change banks.
There will no longer be a need to transfer Pension Payment Orders (PPOs) between regional offices.
This feature is especially beneficial for retirees who relocate to their hometowns or other cities after retirement, providing them with greater flexibility and peace of mind.
Modernizing Pension Services
The CPPS represents a major shift in how pension services are delivered, aligning with EPFO’s commitment to creating a tech-driven, member-centric service model.
By eliminating the need for manual processes and physical visits, the system enhances convenience for pensioners while reducing administrative burdens on EPFO.
EPFO is focused on leveraging technology to streamline operations, reduce delays, and ensure timely and accurate disbursements.
With CPPS in place, EPFO is setting a new benchmark for pension service delivery in India, offering a modern and efficient system that meets the needs of a growing number of pensioners.
A Brighter Future for Pensioners
The successful rollout of CPPS marks a transformative moment for India’s pension system.
Pensioners now have the flexibility to access their funds without being tied to a specific bank or branch, ensuring greater ease and reliability.
As EPFO continues its mission to improve services, the CPPS stands out as a cornerstone of its efforts to modernize and simplify pension management.
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