EPFO Pension: There is a relief news for EPFO pensioners and private sector employees. Members receiving pension under the Employees’ Pension Scheme (EPS) will now be able to withdraw their pension from any bank or its branch
EPFO Pension: There is a relief news for EPFO pensioners and private sector employees. Members receiving pension under the Employees’ Pension Scheme (EPS) will now be able to withdraw their pension from any bank or its branch. This facility will come into effect from January 1, 2025 and more than 78 lakh EPS pensioners across the country will get the benefit of this new system.
In fact, in September, the Central Government approved the Centralized Pension Payment System (CPPS) for the Employees’ Pension Scheme, 1995, so that pensioners can get their pension from any bank branch in the country. In October, under the pilot project of CPPS in Jammu, Srinagar and Karnal areas, 49,000 EPS pensioners were given a pension of Rs 11 crore and this process will be implemented across the country from January 2025.
How to get the benefit of pension
After the implementation of CPPS, pensioners will no longer need to transfer the Pension Payment Order (PPO) even if they move to any city or change bank/branch. Pensioners will now be able to get their pension from any bank branch across the country. The pension distribution system is decentralized, in which each regional or zonal office of EPFO enters into agreement with only 3-4 banks. Under CPPS, this system will change and pensioners will get pension without any verification process in the bank. Pension will be paid directly into their account.
What is CPPS system
Under the CPPS system, pension distribution will be smooth across India. Pensioners will no longer need to send PPO if they move anywhere or change their bank/branch. This will be a relief especially for those pensioners who return to their hometown after retirement. The new system is part of EPFO’s ongoing IT modernization project, Centralized IT Enabled System (CITES 2.01), and will be fully implemented by January 2025. This change is a significant improvement in EPFO’s service for 78 lakh EPS pensioners.
