The Government of India has issued new instructions about retirement. Every government employee has to do this work before retiring from their respective duties. The pilot trial of this new system was successfully concluded on 29-30 October 2024 in Jammu, Srinagar, and Karnal.
A major relief has been announced
A major relief has been announced for the account holders of the Employees’ Provident Fund Organization (EPFO) and private sector employees. From 1st January 2025, pensioners covered under EPFO’s pension scheme will be able to withdraw pension from any bank or branch. This new system is expected to benefit more than 78 lakh EPS pensioners.
Proposal for a centralised pension payment system
In September, the central government approved the proposal for a centralised pension payment system (CPPS), which will make it possible to receive pension from any bank or branch across the country. Under the pilot run, pension of ₹11 crore was distributed to 49,000 EPS pensioners of Jammu, Srinagar and Karnal in the month of October. Labour and Employment Minister Mansukh Mandaviya shared this information. When the CPPS is implemented, pensioners will not be required to transfer the Pension Payment Order (PPO) even on relocation or change of bank branch, and they will be able to receive pension from any bank branch.
Pension will be directly credited to the pensioners’ accounts
Each regional EPFO office enters into agreements with only a few banks, making the pension disbursement process decentralized. Under CPPS, the pension will be directly credited to the pensioners’ accounts, so that there will be no need to go to the bank and do any kind of verification. Through this system, pensioners will be able to withdraw their pension from any bank or branch in the country. The CPPS system will simplify pension disbursement across India, eliminating the need to shift PPOs from one office to another, whether pensioners change locations or change bank branches.
This will be a great facility for pensioners who move to their hometown after retirement. The CPPS system will be fully implemented by January 2025, which is part of EPFO’s Centralised IT Enabled System (CITES 2.01) modernization project. This new system will improve services for EPS pensioners and will simplify and facilitate the process of pension withdrawal for more than 78 lakh EPFO pensioners.