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The central government has given a major relief to pensioners. Now a pensioner living anywhere in the country will not have to travel far to get a pension. Labour Minister Mansukh Mandaviya on Wednesday said that pensioners covered under the Employees Provident Fund Organisation (EPFO) pension scheme will be able to get a pension from any bank or its branch from January. We also tell you what kind of announcement the government has made regarding pensioners.
The labour ministry said in a statement that Mandaviya has approved the proposal for a Centralised Pension Payment System (CPPS) for the Employees Pension Scheme (EPS), 1995. He is also the chairman of the Central Board of Trustees (CBT), the highest decision-making body of EPFO. According to the statement, through the centralised pension payment system, pensions will be distributed through any bank or branch across the country.
You can collect your pension at any bank branch.
The Minister stated that the approval of CPPS is a milestone in the direction of modernisation of the Employees Provident Fund Organisation (EPFO). Under this, pensioners will be able to receive their pension from any bank, at any branch and from any part of the country. This initiative resolves the long-standing issues of the shareholders. This agreement ensures a smooth and efficient delivery system. He said that this is an important step towards our efforts to transform EPFO ​​into a stronger, more responsive and technologically enabled organisation to better serve the needs of its members and pensioners.
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More than 78 pensioners will benefit
The Centralized Pension Payment System is expected to benefit over 78 lakh EPS-95 pensioners of EPFO. The centralized system will ensure smooth distribution of pensions across the country without the need to transfer Pension Payment Orders (PPO) from one office to another. This will be a major relief for those pensioners who are leaving for their hometown after retirement. This facility will be launched from January 1, 2025 as a part of the IT-enabled Centralized System (CITES 2.01) of EPFO’s ongoing Information Technology Modernization Project. In the next phase, CPPS will achieve a seamless transition to Aadhaar-based payment system (ABPS).
This used to be a problem.
The ministry statement said the new system is a significant change from the existing pension disbursement process under which each EPFO ​​regional office had to enter into separate agreements with only three to four banks. It said now pensioners will not have to visit the bank branch to check the time of commencement of pension and the payment will be deposited immediately after their release. Along with this, EPFO ​​expects the new system to significantly reduce the cost of pension distribution.
