Pensioners covered under the Employees’ Pension Scheme (EPS), 1995 will be able to access pension from any bank branch in India as of January 1, 2025. This means pensioners can receive their pensions from any bank or branch in India. The Employee Provident Fund (EPF) has approved the proposal for a Centralized Pension Payment System (CPPS) for Employees’ Pension Scheme, 1995.
According to a press statement from the Press Information Bureau on September 4, 2024, this system will allow EPS pensioners to get their benefits from any bank, branch, or location in India beginning on January 1, 2025.
What is Centralized Pension Payment System (CPPS)
The CPPS represents a significant shift by providing a national-level centralized system that allows pension payout through any bank or branch in India.
Which EPS pensioners will benefit
The Centralized Pension Payment System is estimated to benefit over 78 lakh EPFO EPS pensioners. By leveraging advanced IT and financial technology, pensioners will have a more efficient, seamless, and user-friendly experience. For retirees who relocate to their hometown after retirement, this would be a huge relief. When will it be applicable from?
This functionality will be made available as part of EPFO’s ongoing IT modernization program, the Centralized IT Enabled System (CITES 2.01), starting on January 1st, 2025.
No need of PPO transfer
Additionally, even in the event that a pensioner relocates or switches banks or branches, the CPPS will guarantee pension delivery across India without requiring the transfer of Pension Payment Orders (PPO) from one office to another.
Union Minister Dr. Mansukh Mandaviya said, “The approval of the Centralized Pension Payment System (CPPS) marks a significant milestone in modernization of the EPFO. By enabling pensioners to receive their pensions from any bank, any branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism. 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.”
In the next phase of transition it will be Aadhaar-based Payment System (ABPS).
EPS contribution
The Employee Pension Scheme (EPS) contribution is the amount that both employees and employers contribute to the scheme; Employees contribute 12% of their basic salary, dearness allowance, and retaining allowance to the EPF. Employers contribute 12% of the employee’s salary, with 8.33% going to the EPS and 3.67% going to the EPF. An EPF member can be part of EPS scheme, provided his basic salary does not exceed Rs 15,000 per month from September 1, 2014.
