Pension Rule: There is big news for about 78 lakh pensioners of the country. The government is making such arrangements that now you will be able to withdraw pension from any bank or branch in the country. Not only this, the verification of pension can also be done through Aadhaar.
Pension Rule: The biggest problem of millions of pensioners of the country is going to be solved soon. Labor Minister Mansukh Mandaviya said on Wednesday that pensioners covered under the pension scheme of the Employees’ Provident Fund Organization (EPFO) will be able to get pension from any bank or its branch from January. Currently, pensioners have to go to the same bank or branch to withdraw their pension, where their account is open. This causes problems to most pensioners, because even if they change their place, they have to go to the same bank or branch to get pension.
The Labor Ministry said that Mandaviya has approved the proposal for a centralized pension payment system (CPPS) for the Employees’ Pension Scheme (EPS) 1995. He is also the chairperson of the Central Board of Trustees (CBT), the apex decision-making body of EPFO. According to the statement, the centralized pension payment system will allow the distribution of pension through any bank or any branch across the country.
The problem has been there for a long time
The minister said, ‘The approval of CPPS is a milestone in the direction of modernization of the Employees Provident Fund Organization (EPFO). Under this, pensioners will be able to receive their pension from any bank, any branch anywhere in the country. This initiative solves the long-standing problems of pensioners. This system ensures a seamless and efficient distribution system.’
78 lakh people will benefit
The Union Minister said, this is an important step towards our efforts to transform EPFO into a more robust, responsive and tech-enabled organization to better serve the needs of its members and pensioners. The centralized pension payment system is expected to benefit more than 78 lakh EPS-95 pensioners of EPFO. The centralized system will ensure seamless distribution of pension across the country without the need to transfer the Pension Payment Order (PPO) from one office to another.
Benefit to those returning home
This will be a big relief for pensioners who move to their hometown after retirement. This facility will be launched from January 1, 2025 as part of EPFO’s ongoing Information Technology Modernization Project Centralized IT Equipped System (CITES 2.01). In the next phase, CPPS will bring a smooth transition to Aadhaar-based Payment System (ABPS).
The process is quite difficult right now
The ministry statement said that the new system is a significant change from the existing pension distribution process, under which each regional/zonal office of EPFO had to enter into separate agreements with only three-four banks. It said that now pensioners will not need to visit the bank branch for verification at the time of pension commencement and the payment will be credited immediately upon release.
