EPFO Launches Centralized Pension Payments System: A Major Leap Towards Seamless Pension Disbursement Across the Nation

The CPPS system will become a part of EPFO’s Centralized IT Enabled System (CITES 2.01), with a full rollout expected by January 2025.

In a historic step to modernize India’s pension disbursement system, Union Minister for Labour & Employment, Dr. Mansukh Mandaviya has announced the successful completion of a pilot run of the new Centralized Pension Payments System (CPPS) under the Employees’ Pension Scheme 1995. Conducted on 29th and 30th October 2024, the pilot enabled the disbursement of approximately Rs 11 crore in pension payments to over 49,000 pensioners in Jammu, Srinagar, and Karnal regions.

During the announcement of CPPS, Dr. Mandaviya emphasized the transformative potential of the new system, stating that it would allow pensioners to receive their monthly pensions from any bank and branch across India, eliminating the current limitations of the existing decentralized model. "This initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism," Dr. Mandaviya noted. He further highlighted the government’s commitment to revamping the Employees’ Provident Fund Organisation (EPFO) into a responsive, tech-enabled entity that prioritizes service quality for its members.

The CPPS system marks a significant upgrade from the earlier decentralized pension system, which required each regional EPFO office to manage agreements with only a few banks and often demanded in-person verifications. Under CPPS, pensions will be directly credited to pensioners' accounts upon release, without requiring bank visits or transfers of Pension Payment Orders (PPOs) when pensioners change locations, banks, or branches. This shift promises substantial relief for pensioners, especially those who relocate post-retirement.

The CPPS system will become a part of EPFO’s Centralized IT Enabled System (CITES 2.01), with a full rollout expected by January 2025. This modernization effort is set to benefit more than 78 lakh EPS pensioners nationwide, with EPFO aiming to expand and streamline its digital services for pensioners.

As part of the broader IT modernization project, CPPS is expected to bring vast improvements to EPFO's operational efficiency, ensuring timely pension disbursement and eliminating redundant paperwork, thereby improving the overall user experience for pensioners across India.