The Union Labour Ministry has cleared a proposal for Centralised Pension Payment System (CPPS) for about 78 lakh pensioners under the Employees’ Pension Scheme, 1995. The new system enables pension disbursement through any bank, any branch across the country.
Union Minister of Labour and Employment and Chairperson, Central Board of Trustees, Employees Provident Fund Organisation (EPFO), Mansukh Mandaviya, said the approval of the CPPS marks a significant milestone in modernisation 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,” he said.
The CPPS would ensure disbursement of pension throughout India without any need for transfer of Pension Payment Orders from one office to another even when the pensioner moves from one location to another, or changes the bank or branch. “This would be a great relief to pensioners who move to their hometown after retirement,” the Union Labour Ministry said in the release.
This facility will be launched as part of EPFO’s ongoing IT modernisation project Centralised IT Enabled System (CITES 2.01) from January 1, 2025. In the next phase, CPPS will enable a smooth transition to Aadhaar-based payment system. There will be no need for pensioners to visit the branch for any verification at the time of commencement of pension and the pension shall be immediately credited upon release, the government said. The EPFO expects a significant cost reduction in pension disbursement after moving to the new system.
Published - September 04, 2024 10:25 pm IST
