Government Approves Centralised Pension Payment System for EPFO Pensioners

The Indian government has approved a Centralised Pension Payment System (CPPS) to modernize pension disbursements under the Employees' Pension Scheme. This initiative will allow pensioners to receive their payments through any bank across India, benefiting over 7.8 million pensioners and significantly reducing disbursement costs.

The Indian government has given the nod to a Centralised Pension Payment System (CPPS) under the Employees' Pension Scheme, 1995, heralding a significant modernization effort for the Employees' Provident Fund Organisation (EPFO). This new initiative will enable pensioners to receive their pensions from any bank or branch nationwide, thus addressing long-standing challenges.

Union Minister of Labour and Employment, Mansukh Mandaviya, stated, "The approval of the CPPS marks a significant milestone in the EPFO's modernization. By enabling pensioners to receive their pensions from any bank, any branch, anywhere in the country, this initiative ensures a seamless and efficient disbursement mechanism." Mandaviya emphasized that this step would make EPFO a more tech-enabled organisation, better serving its members and pensioners.

The CPPS is set to benefit over 7.8 million EPS pensioners by leveraging advanced IT and banking technologies for a user-friendly experience. It eliminates the need for pensioners to transfer Pension Payment Orders (PPO) when they change banks or move post-retirement. Scheduled for launch on January 1, 2025, this facility is part of EPFO's Centralised IT Enabled System (CITES 2.01) project. The CPPS will initially offer decentralised pension disbursement but will eventually transition to an Aadhaar-based payment system (ABPS).

This new system will also remove the need for pensioners to visit branches for verification, as pensions will be credited upon release. EPFO anticipates a significant reduction in disbursement costs with the CPPS.

(With inputs from agencies.)