New Delhi: In a groundbreaking move towards modernizing the Employees’ Provident Fund Organisation (EPFO), Union Minister of Labour and Employment, Dr. Mansukh Mandaviya, has approved the proposal for a Centralized Pension Payment System (CPPS) for the Employees’ Pension Scheme, 1995. This new system marks a significant advancement by establishing a national-level centralized mechanism, allowing pension disbursement through any bank branch across India.
Dr. Mandaviya hailed the approval as a major milestone in the modernization of the EPFO, stating, “The Centralized Pension Payment System (CPPS) is a crucial step in transforming EPFO into a more robust, responsive, and tech-enabled organization. By enabling pensioners to receive their pensions from any bank branch nationwide, this initiative addresses long-standing challenges and ensures a seamless and efficient disbursement mechanism.”
The CPPS is set to benefit over 78 lakh EPS pensioners, significantly enhancing the pension experience by leveraging advanced IT and banking technologies. This system will streamline pension disbursement, providing a more efficient and user-friendly process for pensioners.
One of the major advantages of the CPPS is its ability to disburse pensions across India without the need for Pension Payment Orders (PPO) transfers when pensioners move locations or change their bank or branch. This feature will be especially beneficial for retirees who relocate to their hometowns post-retirement.
Scheduled to be launched on 1st January 2025 as part of EPFO’s ongoing IT modernization project, Centralized IT Enabled System (CITES 2.01), the CPPS will also facilitate a smooth transition to an Aadhaar-based payment system (ABPS) in its next phase.
The new CPPS will replace the existing decentralized pension disbursement system, which involved each Zonal/Regional Office of EPFO maintaining agreements with a limited number of banks. With the CPPS, pensioners will no longer need to visit bank branches for verification at the time of pension commencement, as pensions will be credited immediately upon release. Additionally, EPFO anticipates a sig`nificant reduction in disbursement costs with the implementation of the new system.