Starting from January 1, 2025, there will be a major relief for pensioners who come under the Employees' Pension Scheme (EPS) 1995. Recently, the Central Government has given the nod for a Centralised Pension Payment System (CPPS). This is potentially expected to change how pensions are disbursed, making it a relief for over 78 lakh pensioners across the country.
What is CPPS? A Simplified Explanation
The Centralised Pension Payment System (CPPS) is an initiative by the central government to ease the process of pension payments.
Unlike the current system, which is as of now decentralised and managed by individual Zonal/Regional Offices of the Employees' Provident Fund Organisation (EPFO), the new system CPPS will centralise the pension disbursement at a national level.
This in simple term means that the pensioners of the country can receive their pension from any bank, any branch, anywhere in the country.
CPPS will be a part of EPFO’s ongoing IT modernization project, known as Centralised IT Enabled System (CITES 2.01). | Freepik
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."
The Need for Change
Currently, in our country, the pensioners face a numerous challenges particularly wheh they relocate to a new place or change their banks.
Furthermore, the current system also requires the transfer of Pension Payment Orders (PPOs) from one office to another, which is seen to be troublesome for many and also it takes a lot of time to process.
With this new system, it aimed to eliminate these challenfes so the pensioners receive their payments on time without any interruption regardless of whatever the situation might be.
Once the pension is released, it will be credited directly to the pensioner's account. | Representative Image
How Will CPPS Work?
CPPS will be a part of EPFO’s ongoing IT modernization project, known as Centralised IT Enabled System (CITES 2.01).
By applying the advanced IT and banking technologies, this system will furthermore enable pensioners to access their pensions without the need for physical verification at bank branches.
Once the pension is released, it will be credited directly to the pensioner's account.
Furthermore, in the next phase, the system will transition to an Aadhaar-based payment system (ABPS).
