EPFO to Introduce Centralized Pension Payment System

New Delhi- The Union Minister of Labour and Employment, Dr. Mansukh Mandaviya, has approved the Centralized Pension Payment System (CPPS) for the Employees' Pension Scheme, 1995. This new system will centralize pension payments at the national level, allowing pensioners to receive their pensions from any bank branch across India.

Dr. Mandaviya highlighted that the CPPS is a significant step in modernizing the EPFO, making pension disbursement more efficient and accessible. Pensioners will now be able to receive their pensions seamlessly, no matter where they are or which bank branch they use.

The CPPS is expected to benefit over 78 lakh EPS pensioners by using advanced IT and banking technologies to simplify the process. Pensioners will no longer need to transfer their Pension Payment Orders (PPO) when they move or change banks, providing greater convenience, especially for those who relocate after retirement.

This new system is set to launch on January 1, 2025, as part of EPFO's ongoing IT modernization efforts. In the future, the CPPS will also support Aadhaar-based payments (ABPS), further streamlining the process. Unlike the current decentralized system, where each EPFO office works with only a few banks, the CPPS will reduce costs and eliminate the need for pensioners to visit branches for verification when their pension starts.