Union Minister of Labour & Employment and Youth Affairs & Sports, Dr. Mansukh Mandaviya, announced the successful completion of the pilot run of the new Centralized Pension Payments System (CPPS) under the Employees’ Pension Scheme 1995 (EPS).
The pilot run, which took place on October 29-30, 2024, saw the disbursement of over Rs 11 crore to more than 49,000 EPS pensioners in the Jammu, Srinagar, and Karnal regions.
EPS: Shift in Pension Disbursement and Benefits
The CPPS marks a significant milestone in the modernization of the Employees’ Provident Fund Organisation (EPFO).
By enabling pensioners to receive their pension from any bank branch across India, the new system addresses long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism.
This is a crucial step in transforming the EPFO into a more robust, responsive, and tech-enabled organization.
One of the key benefits of the CPPS is that pensioners will no longer need to visit the bank for any verification at the time of commencement of their pension.
Instead, the pension will be immediately credited upon release.
Additionally, the system ensures that pension disbursement will occur throughout India.
It will be without the need for transferring Pension Payment Orders (PPO) from one office to another.
This would remain same even if the pensioner moves to a different location or changes their bank or branch.
Vision for the Future
CPPS system is part of EPFO’s ongoing IT modernization project, Centralized IT Enabled System (CITES 2.01). It is set to be fully rolled out by January 2025.
Once fully operational, the system will benefit more than 78 lakh EPS pensioners.
This major reform is expected to provide significant relief to pensioners, especially those who move to their hometowns after retirement.
Mansukh Mandaviya emphasized that the approval of CPPS is a significant milestone in the modernization of the EPFO.
He stated, “By enabling pensioners to receive their pension 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.”
He also highlighted Modi government’s efforts in creating a strong foundation for tech companies and prioritizing digitization, education, and skilling.
The successful completion of pilot run of CPPS under EPS is a major step towards better pension services in India.
With the full rollout expected by January 2025, CPPS is set to bring about a shift in pension disbursement. This will be benefiting millions of pensioners across the country.
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