EPFO Introduces Centralised Pension Payment System (CPPS): A Game-Changer for Pensioners

 

Image source : www.epfindia.gov.in

The Union Labour Ministry has given a green signal to a new pension disbursement system under the Employees' Provident Fund Organisation (EPFO). 

The Centralised Pension Payment System (CPPS) will bring significant relief to nearly 78 lakh pensioners under the Employees’ Pension Scheme, 1995. 

Starting January 1, 2025, pensioners can receive their pensions from any bank or branch across India, without the need to visit a specific branch.

What is CPPS?

The CPPS is a key part of EPFO’s IT modernization initiative, known as CITES 2.0. The primary aim is to streamline pension disbursement and simplify the process for pensioners who may move or change banks post-retirement. 

This initiative eliminates the need for pensioners to transfer pension offices when relocating, making it a much more flexible system for those living in different parts of the country.

Next Phase of Modernisation

In the subsequent phase, CPPS will incorporate Aadhaar-based payments to further ease the process. Pensioners will no longer have to visit branches for verification; pensions will be directly credited upon release.

Significance

This move is expected to reduce administrative costs and improve the efficiency of pension disbursement across the country. 

According to the Union Labour Minister Mansukh Mandaviya, it’s a “significant milestone” in modernizing EPFO, addressing long-standing challenges faced by pensioners.

Key Features:

• Nationwide Flexibility: Pensioners can collect pensions from any bank branch in India.
• No Office Transfer: No need to transfer Pension Payment Orders after moving.
• Aadhaar Integration: Smooth transition to Aadhaar-based payment in future phases.

Conclusion

This revolutionary step by the EPFO, under the CITES 2.0 initiative, ensures ease, convenience, and cost-effectiveness in pension disbursement, significantly benefiting India’s pensioners.