New Delhi
The Centralised Pension Payments System (CPPS) was approved by the Centre on Wednesday. This system will benefit more than 78 lakh people under the Employee Pension Scheme (EPS), which is part of the Employees’ Provident Fund Organisation (EPFO). From January 1, 2025, EPS pensioners will be able to receive their pensions from any bank, any branch, anywhere in India.
It was announced that pensioners will not need to visit the branch for verification when starting their pensions, as the pensions will be immediately credited once released. The EPFO expects a significant reduction in pension disbursement costs with this new system.
The CPPS is being considered a major step in the modernisation of the EPFO. It is aimed at addressing challenges faced by pensioners and ensuring a seamless disbursement process. The system will function at the national level, enabling pension disbursement through any bank and branch across India.
Additionally, the CPPS will eliminate the need for transferring Pension Payment Orders (PPO) from one office to another when a pensioner moves or changes their bank or branch. This will be particularly beneficial for pensioners who relocate after retirement. In the future, the government plans to transition to the Aadhaar-based Payment System (ABPS).
