News: The Union Labour Ministry has informed about the successful pilot run of the proposed Centralised Pension Payments System (CPPS) under the Employees’ Pension Scheme (EPS) of the Employees Provident Fund Organisation (EPFO). The trial run was completed on 29 and 30 October 2024.
1. The pilot run involved disbursing pensions worth more than Rs 11 crore to 49,000 EPS pensioners of Jammu, Srinagar and Karnal region for October 2024.
2. The CPPS would be implemented nationwide by January 2025.
3. It would ensure a seamless disbursement mechanism by enabling more than 78 lakh EPS pensioners to receive their pensions from any bank, any branch, anywhere in the country.
4. The Employee Pension Scheme (EPS) is a social security programme in India which aims to help employees in the organised sector by providing a pension post-retirement at 58.
5. EPS was launched in 1995 and is managed by the Employees Provident Fund Organisation (EPFO).
6. An employee must have completed at least 10 years of service to avail themselves of the benefits of the EPS scheme. Existing and new EPF members are eligible for the EPS scheme.
7. Under the scheme, both the employer and the employee contribute 12% of the employee’s pay. During every month, the employee’s entire contribution is made to the EPF. Whereas 8.33% of the employer’s contribution goes to the EPS and the remaining 3.67% goes to the EPF.
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