On Wednesday, the Central Government sanctioned the implementation of the Centralised Pension Payments System (CPPS), an initiative poised to benefit upwards of 7.8 million individuals enlisted in the Employee Pension Scheme (EPS), administered by the Employees’ Provident Fund Organisation (EPFO).
Dr. Mansukh Mandaviya, Union Minister of Labour and Employment, heralded a transformative era, affirming that EPS pensioners will be empowered to receive their pension from any banking institution, at any branch, across the expanse of India, commencing January 1, 2025.
The ministry further elucidated that pensioners would no longer be encumbered by the need to physically visit bank branches for verification processes at the onset of their pension. The pension will be promptly credited upon its release, thus enhancing convenience and accessibility.
Moreover, the EPFO anticipates a notable reduction in the costs associated with pension disbursement, owing to the transition to this novel system.
“The sanctioning of CPPS heralds a pivotal stride in the modernisation of the EPFO. By facilitating pensioners to draw their pensions from any bank, at any branch, across the country, this initiative surmounts long-standing challenges faced by pensioners and ensures a streamlined and efficacious disbursement framework,” remarked the minister.
In subsequent phases, the government plans to migrate towards the Aadhaar-based Payment System (ABPS).
The CPPS embodies a paradigm shift, instituting a nationwide, centralised infrastructure for pension disbursement through any banking institution, at any branch across India.
Leveraging cutting-edge IT and banking technologies, the CPPS is set to deliver a more efficient, seamless, and user-centric experience for pensioners.
This centralised system will also guarantee the disbursement of pensions nationwide without necessitating the transfer of Pension Payment Orders (PPOs) from one office to another, even if a pensioner relocates or switches their bank or branch.
This development is expected to offer substantial relief to pensioners who return to their hometowns post-retirement.
Last month, the Union Cabinet, under the stewardship of Prime Minister Narendra Modi, endorsed the Unified Pension Scheme (UPS) for government employees. This scheme is designed to provide a guaranteed minimum pension and family pension, benefiting approximately 2.3 million Central government employees.
