New Delhi: On Wednesday, the Centre approved the Centralised Pension Payments System (CPPS), which will benefit over 78 lakh people through the Employee Pension Scheme (EPS), which is part of the Employees’ Provident Fund Organisation (EPFO).
Dr Mansukh Mandaviya, Union Minister of Labour and Employment, stated that EPS pensioners can get their pensions from any bank, branch, and location in India beginning January 1, 2025.
According to the ministry, pensioners will not need to attend the branch for verification at the time of pension commencement; the pension will be credited immediately upon release.
In addition, EPFO expects a significant cost reduction in pension disbursement after moving to the new system.
“The approval of 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,” said the minister.
The government will transition to the Aadhaar-based Payment System (ABPS) in the next phase.
The CPPS marks a major shift by establishing a national-level centralised system, enabling pension disbursement through any bank or branch across India.
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By harnessing advanced IT and banking technologies, the CPPS will offer pensioners a more efficient, seamless, and user-friendly experience.
The centralised system would also ensure the disbursement of pensions throughout India without transferring Pension Payment Orders (PPO) from one office to another, even when the pensioner moves from one location to another or changes his bank or branch.
This would greatly relieve pensioners who move to their hometowns after retirement.
Last month, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS) for government employees. The scheme will provide an assured minimum pension and a family pension. Around 23 lakh central government employees will benefit from it.
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–IANS
