Private sector employees have got a big relief. After retirement, it is going to be easier to get pension from EPFO’s pension scheme EPS.
This change will come into effect from next year i.e. January 1, 2025, after which it will become easier to get pension from any branch of any bank. The central government has approved this new system.
Actually, the central government had received a proposal from the Centralized Pension Payment System (CPPS) regarding the Employees’ Pension Scheme (EPS) 1995. Under this proposal, a system for withdrawing pension from any branch of any bank was to be implemented, which has been approved by the government. This will help EPS pensioners to withdraw their pension from any bank, branch or place in India from January 1, 2025. This is a big change for private sector employees.
More than 78 lakh people will benefit
This system is expected to benefit more than 78 lakh EPS pensioners of EPFO. By using better IT and banking technology, it will provide a more efficient, seamless and user-friendly experience for pensioners. Union Minister Dr. Mansukh Mandaviya said that the approval of the Centralized Pension Payment System (CPPS) is an important milestone in the modernization of EPFO.
He further added that by enabling pensioners to receive their pension from any bank, any branch anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and creates a seamless and efficient distribution system. This is an important step in our ongoing efforts to transform EPFO into a more robust and tech-enabled organisation, committed to better serving the needs of its members and pensioners.”
How will it work?
CPPS is a paradigm shift from the current pension payment system, in which EPFO’s direct regional/zonal office makes separate agreements with only 3-4 banks. With this system, pensioners will not need to visit any verification branch at the time of pension commencement. The money will be credited to the account immediately after the pension is released. Apart from this, EPFO hopes that the pension distribution cost will also come down after moving to the new system.
What is Centralized Pension Payment System?
Centralized Pension Payment System (CPPS) is an initiative of the Center, which will launch a system at the national level. This system provides the facility of pension payment through any bank or branch located in India. This facility will be started from January 1, 2025 as part of EPFO’s ongoing IT modernization project IT Enabled System (CITES 2.01).
