The Centralized Pension Payment System (CPPS) for the Employees’ Pension Scheme (EPS) 1995 has received government approval.
Union Minister of Labour and Employment, Dr. Mansukh Mandaviya, announced this landmark decision. This will allow EPS pensioners to receive their pensions from any bank, branch, or location across India starting from January 1, 2025.
What Is the Centralized Pension Payment System (CPPS)?
The CPPS represents a paradigm shift by establishing a national-level centralized system for pension disbursement. Under the new system pensioners will no longer be tied to specific banks or branches.
The verification processes at individual bank branches will be eliminated and pensions will be credited promptly upon release, without delays.
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Benefits of the CPPS
Enhanced Accessibility: EPS pensioners can now receive their pensions from any bank, regardless of their location in India. Retirees who relocate to their hometowns after retirement will find this system particularly beneficial.
Efficiency and Cost Savings: The current decentralized pension disbursement system, where each EPFO Zonal/Regional Office maintains arrangements with only a few banks, will be replaced by the CPPS.
By leveraging advanced IT and financial technology, the new system aims to be more efficient and user-friendly. EPFO anticipates substantial cost savings in pension payouts.
Seamless Transition: The CPPS will facilitate an easy switch to the Aadhaar-based payment system (ABPS) in the next stage. Pensioners won’t need to transfer Pension Payment Orders (PPO) when relocating or switching banks or branches.
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Impact on EPS Pensioners and Future Prospects
Over 78 lakh EPFO EPS pensioners stand to benefit from this centralized system. The approval of the CPPS marks a significant milestone in the modernization of the EPFO, according to Dr. Mandaviya.
Speaking about this landmark decision, Union Minister Dr. Mansukh Mandaviya said, “The approval of the Centralized Pension Payment System (CPPS) marks a significant milestone in modernization of the EPFO.”
He added, “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 minister said.
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