EPS Pensioners: Centralized Pension Payment System (CPPS) Coming in 2025

New System to Streamline Pension Disbursement Across India Starting January 1, 2025

In a major update for Employees’ Pension Scheme (EPS) beneficiaries, the Union Minister of Labour and Employment has announced the launch of the Centralized Pension Payment System (CPPS), effective from January 1, 2025. This new system will revolutionize pension disbursement by allowing EPS pensioners to access their pensions from any bank branch across the country.

Key Features of the Centralized Pension Payment System (CPPS)

The CPPS will be implemented as part of the Employees’ Provident Fund Organisation’s (EPFO) ongoing IT modernization initiative, Centralized IT Enabled System (CITES 2.01). This advancement is designed to streamline and enhance the pension disbursement process, making it more efficient and accessible for pensioners.

Benefits of the CPPS Include:

• Nationwide Access: Pensioners will have the flexibility to receive their pension from any bank branch in India, eliminating the need for transferring Pension Payment Orders (PPOs) between offices.
• Enhanced Convenience: The new system will facilitate pension payments regardless of the pensioner’s location or bank branch, addressing long-standing challenges and simplifying the process.
• Smooth Transition to Aadhaar-Based Payment System (ABPS): The CPPS will eventually integrate with the Aadhaar-based payment system, further enhancing the efficiency of pension disbursements.

Union Minister’s Remarks

Union Minister Dr. Mansukh Mandaviya expressed enthusiasm about the new system, stating, “The approval of the Centralized Pension Payment System (CPPS) marks a significant milestone in the modernization of the EPFO. By allowing pensioners to receive their pensions from any bank, any branch, anywhere in the country, we are addressing longstanding issues and ensuring a seamless and efficient disbursement mechanism. This initiative is a crucial part of our efforts to transform the EPFO into a more robust, responsive, and technology-driven organization.”

Anticipated Impact on EPS Pensioners

The CPPS is expected to benefit over 78 lakh EPS pensioners, leveraging advanced IT and banking technologies to provide a more user-friendly experience. The new system will:

• Eliminate the Need for Branch Verification: Pensioners will no longer need to visit their branch for verification at the start of their pension.
• Immediate Pension Credit: Pensions will be credited promptly upon release.
• Cost Reduction: EPFO anticipates significant savings in pension disbursement costs with the transition to the new system.

With the CPPS, EPS pensioners will enjoy greater flexibility and efficiency in managing their pension payments, reflecting a significant improvement in the overall pension disbursement process.

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