CPPS is expected to simplify the process for more than 78 lakh EPS pensioners across the nation. Take a closer look at what it has to offer
There has been a major development in the pension disbursement system which is set to benefit millions of Indian retirees soon. On Friday, Minister of Labour and Employment, Mansukh Mandaviya, announced the successful completion of the trial run of the new Centralised Pension Payments System (CPPS) under the Employees’ Pension Scheme 1995.
The pilot run was completed on the 29th and 30th of October 2024 in the regions of Jammu, Srinagar, and Karnal initiating the disbursement of Rs 11 crore in pensions to over 49,000 pensioners. “The pilot run is just the beginning of a major change that will improve pension payments for millions of retirees,’ the minister stated while announcing this development.
Currently, each regional office of the EPFO (Employees’ Provident Fund Organisation) manages its own agreements with only 3 to 4 banks. This further restricts pensioners in terms of where they could receive their payments. However, with CPPS this will no longer be the case.
CPPS is a digital upgrade that will streamline how pensions are distributed under the EPS.
The government notes that CPPS is a paradigm shift from the existing pension disbursement system. In the new system, there will be no need for pensioners to visit the bank to get verification for the commencement of pension. CPPS will allow for immediate credit upon the release of the pension directly to the account of the retiree.
CPPS is expected to simplify the process for more than 78 lakh EPS pensioners across the nation. Let’s take a closer look at what it offers:
- Pensions will not be tied to a specific bank branch anymore. Pensioners will be able to access their pensions at any bank, anywhere in India.
- When the government releases pension funds, they will be credited directly to pensioners’ accounts eliminating the waiting periods or unnecessary trips of the senior citizenry to the bank.
- This new system will remove the need for pensioners to transfer their Pension Payment Orders (PPO) if they relocate or switch banks or branches. This is to make sure there is uninterrupted pension delivery across India.
- CPPS is also instituted to work with Aadhar cards where pensions will eventually be linked to the Aadhaar accounts. This is to add an extra layer of security and ease.
There is a simple eligibility criteria for CPPS which is that the pensioners must be EPFO members. They should have at least 10 years of service and be at least 58 years old for a full pension.
There is also a provision to start receiving a reduced pension at the age of 50 or delay it until 60.
The CPPS is set to be particularly beneficial for pensioners who have to move to a different region/location after retirement, ensuring they continue receiving their pensions without any disruptions. "This is a crucial step in our ongoing efforts to transform the EPFO into a more robust, responsive, and tech-enabled organization, committed to serving the needs of its members and pensioners better," says Union Minister Mandaviya.