The Employees’ Provident Fund Organisation (EPFO) has made a significant stride in improving pension services with the successful launch of its Centralised Pension Payments System (CPPS).
This move, now fully implemented across all EPFO disbursing offices, marks a major transformation in the way pensions are processed and disbursed in India.
Under the new system, the EPFO has already disbursed around Rs 1,570 crore as pension payments to over 68 lakh pensioners for December 2024. This covers all 122 regional pension disbursing offices of EPFO, demonstrating the broad scope of the programme’s reach.
Previously, the pension disbursement process was decentralised, with each regional or zonal office managing separate agreements with a limited number of banks. This often meant that pensioners had to deal with a complex system when it came to receiving their payments.
However, the new Centralised Pension Payments System changes all of that. Now, pensioners can access their pensions from any bank or branch of their choice, eliminating the need for any visits to the bank for verification.
This ensures that the pension is credited directly to the pensioner’s account as soon as it is released.
One of the most significant benefits of the CPPS is the system's ability to streamline pension disbursements even when a pensioner relocates.
Starting from January 2025, pension payments will be processed seamlessly across India without the need for transferring the Pension Payment Order (PPO) from one office to another.
This will be especially beneficial for those who retire and then move back to their hometowns, ensuring that they receive their pension without unnecessary delays or complications.
Union Minister for Labour and Employment, Dr Mansukh Mandaviya, heralded the rollout of the CPPS as a historic achievement.
In a statement, he noted, “The full-scale implementation of the Centralised Pension Payments System across all Regional Offices of EPFO is a historic milestone. This transformative initiative empowers pensioners to access their pension seamlessly from any bank, any branch, anywhere in the country. It eliminates the need for physical verification visits and simplifies the pension disbursement process.”
He also emphasised that the CPPS would improve convenience, transparency, and efficiency in the pension process.
The government has demonstrated its commitment to modernising EPFO services with this move, aiming to provide a more user-friendly and transparent experience for pensioners.
The system reflects the government’s focus on creating a tech-enabled, member-centric EPFO, ensuring that pensioners have access to their benefits in a hassle-free and efficient manner.
The successful pilot run of the CPPS, which took place in October 2024 across the Karnal, Jammu, and Srinagar regional offices, laid the foundation for the nationwide rollout.
During this pilot, around Rs 11 crore in pension payments were made to over 49,000 pensioners. Following the success of this phase, a second pilot in November 2024 saw Rs 213 crore disbursed to more than 9.3 lakh pensioners across 24 regional offices.
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