The Ministry of Labor and Employment has approved the implementation of the Centralized Pension Payment System (CPPS) for the Employees’ Pension Scheme (EPS).
About Centralized Pension Payment System (CPPS):
- The Centralized Pension Payment System (CPPS) is a national-level system designed to improve pension disbursements under the Employees’ Pension Scheme (EPS).
Key Features:
- Launch Date: CPPS will be operational from January 1, 2025, under the Employees’ Provident Fund Organization (EPFO) as part of the Centralized IT Enabled System (CITES 2.01).
- Pension Accessibility: This system allows pensioners to receive their pensions from any bank, any branch, regardless of their location, enhancing convenience and accessibility.
- Modernization: The CPPS is part of EPFO’s effort to modernize its pension payment system, which is currently decentralized. Each regional/zonal office has its own agreements with a few banks, limiting pensioner flexibility.
- Unified System: Under CPPS, pensions will be credited directly to the pensioner’s account immediately after approval. Pensioners won’t need to visit branches for verification, reducing administrative burdens.
- Relocation Convenience: CPPS eliminates the need to transfer Pension Payment Orders (PPO) when pensioners move or change banks, ensuring uninterrupted pension delivery.
- Future Transition: The system will eventually transition to an Aadhaar-based payment system (ABPS), streamlining disbursements even further.
Eligibility Criteria for EPS Pension:
- EPFO Membership: Must be a member of the Employees’ Provident Fund Organization (EPFO).
- Years of Service: Must have completed at least 10 years of service.
- Age: Full pension at 58 years, reduced pension at 50 years, option to defer pension up to 60 years with a 4% yearly increase.
Benefits to EPS Pensioners:
- Pensioners can receive their pensions from any bank or branch across India.
- Over 78 lakh EPS pensioners will benefit from a seamless, efficient experience.
- The centralized system will reduce EPFO’s administrative costs while providing cost savings on pension payouts.
- Pensioners who relocate post-retirement will continue receiving their pensions without interruptions.
Ref: Source
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Frequently Asked Question:
What is the Centralized Pension Payment System (CPPS)?
CPPS is a national system to streamline and modernize pension payments under the Employees’ Pension Scheme (EPS), enhancing accessibility for pensioners.
Who is eligible for a pension under the Employees’ Pension Scheme?
Employees must have completed 10 years of service and be a member of EPFO to be eligible for an EPS pension.
How many EPS pensioners will benefit from CPPS?
Over 78 lakh EPS pensioners are expected to benefit from CPPS, receiving seamless pension disbursements.