Retired employees of the Employees’ Provident Fund Organization (EPFO) can now easily get their designed pensions from any bank. The Centralized Pension Payment System has been rolled out all over the country, thanks to EPFO completing all its last mile work. Now interestingly let us know all the details regarding this news update-
Employees’ Provident Fund Organization
Pensioners of the Employees’ Provident Fund Organization (EPFO) will now be able to withdraw their pension from any bank. The country has implemented Centralized Pension Payment System by EPFO. This will benefit approximately 68 lakh pensioners under the new scheme rolled out by Ministry of Labor. The Ministry has given this important information on Friday. Therefore, it will definitely make the life of a pensioner simpler, and he will be able to withdraw the amount from the bank of his choice.
According to the ministry, CPPS is an important shift from the existing mode of delivery of pensions and will work in a decentralized manner. The regional offices of EPFO will enter into agreements with only three-four banks. It means that by this new method, beneficiaries will have access to one bank of their choice to receive their sponsored pension, and visiting the bank for verification would not be needed once the pension is funded. Further, the pension will be directly credited to the beneficiary’s account immediately after disbursement and thus make the entire exercise much more straightforward and quicker.
Service Started From January 2025-
Starting from January 2025, this CPPS will ensure the distribution of pensions across India, and there will be no need of transferring the Pension Payment Order (PPO) from one office to another in spite of the pensioners moving to another place or changing the bank or branch.
Benefits-
Under CPPS (Conversion of Pension and Provident Fund Scheme), pensioners going back to their own towns after retirement will find immense relief. According to the ministry, the CPPS first pilot project successful completed in the regional offices of Karnal, Jammu, and Srinagar in October last year. Under this initiative, over 49 thousand EPS pensioners received over 11 crores worth of pensions.
Then in November, the second pilot run reached 24 regional offices, wherein pensions worth some Rs 213 crores were disbursed to more than 9.3 lakh pensioners. This action seems to be a significant step in the direction of improving pension services. It was under this that the Employees Provident Fund Organization implemented the novel Employees Pension Scheme 1995 through CPPS in full scale in December. An important initiative for the pensioners, this will ensure financial security for them.
Service started from January 2025-
From January 2025, the CPPS system will ensure distribution of pension across India and there is no need to transfer the Pension Payment Order (PPO) from one office to another despite the pensioners moving to another place or changing their bank or branch.
Which pensioners will benefit-
Under CPPS (Conversion of Pension and Provident Fund Scheme), pensioners returning to their hometown after retirement will get great relief. According to the ministry, the first pilot project of CPPS was successful in the regional offices of Karnal, Jammu, and Srinagar last October. This helped in disbursing pensions worth around Rs 11 crores to over 49,000 EPS pensioners and eased the pension receipt process for pensioners.
The second pilot project was launched in November in 24 regional offices and disburses over Rs 213 crores in pensions to more than 9.3 lakh pensioners. The move is being considered a significant step in improving pension services. Under this, new CPPS of Employees Pension Scheme 1995 was implemented in full scale in December by Employees Provident Fund Organization (EPFO). This is an important initiative for the pensioners, which will improve their financial security.
