More than 78 lakh EPS pensioners of EPFO are expected to benefit from this system. Under the new system, those receiving pension from PF will be able to withdraw pension money from any bank or branch.
New Pension System: 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, the system of withdrawing pension from any branch of any bank was to be implemented, which has been approved by the government. This EPS will help 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 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 existing pension payment system, in which the direct regional/zonal office of EPFO makes separate agreements with only 3-4 banks. At the same time, with this system, there will be no need for pensioners to visit any verification branch at the time of starting the pension. Money will be deposited in the account immediately as soon as the pension is released. Apart from this, EPFO hopes that after moving to the new system, the pension distribution cost will also come down.
What is Centralized Pension Payment System?
The Centralized Pension Payment System (CPPS) is an initiative of the Center, which will start 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).
