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Source- This post on Centralized pension payment system (CPPS) has been created based on the article “CPPS gets green light; pensioners to get payments via any bank, branch” published in “The Hindu” on 5th September 2024.
Why in News?
The Union Minister of Labour and Employment and the Chairperson of the EPF’s Central Board of Trustees have approved the proposal for a new Centralized Pension Payment System (CPPS) for the Employees’ Pension Scheme, 1995. This initiative will bring several benefits to EPS pensioners across India.
About centralized pension payment system (CPPS)
| Aspects | Description |
| About | It is an initiative is to modernize pension disbursements under the Employees’ Pension Scheme. |
| Operational From | The CPPS will be operational from January 1, 2025, as part of the Employees’ Provident Fund Organization’s (EPFO) Centralized IT Enabled System (CITES 2.01), which is part of an ongoing IT modernization initiative. |
| Key Features | 1. The CPPS provides a unified system that allows pension payments to be made through any bank or branch in India. 2. Pensioners will no longer need to visit their bank branch for verification. Once the benefits are released, the pension will be credited immediately to the pensioner’s account, enhancing convenience and efficiency. 3. The new system eliminates the need for pensioners to transfer their Pension Payment Orders (PPO) if they relocate or switch banks or branches, ensuring uninterrupted pension delivery across India. 4. The CPPS will eventually facilitate a smooth transition to an Aadhaar-based payment system, further streamlining the pension disbursement process. |
| Eligibility Criteria for EPS Pension | i) Must be a member of the Employees’ Provident Fund Organization (EPFO). ii) Must have completed at least 10 years of service. iii) Should have reached the age of 58 to start receiving a full pension. iv) Can opt for a reduced pension starting from age 50. v) Can defer the pension up to age 60, with an additional 4% pension for each year deferred. |
| Benefits to EPS Pensioners | 1. Pensioners can access their pensions from any bank or branch nationwide, providing flexibility and reducing administrative burdens. 2. Leveraging advanced IT and financial technology, the CPPS will offer a more efficient, seamless, and user-friendly experience for over 78 lakh EPFO EPS pensioners. 3. The EPFO anticipates significant cost savings in pension payouts due to the centralized approach. 4. This system is particularly beneficial for pensioners who move to a different location after retirement, ensuring they continue receiving their pensions without any disruptions. |
Read more: Unified Pension Scheme (UPS)
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