EPFO: The new year has provided significant relief to pensioners connected to the Employees’ Pension Scheme (EPS) of the Employees’ Provident Fund Organisation (EPFO). Starting today, retirees are allowed to access their pension from any bank, branch, or place throughout the country. This will be quite helpful for retirees residing in their hometown.
A few days ago, the Minister of Labour and Employment, Mansukh Mandavya, who is also the Chairman of the EPF Central Board of Trustees, approved the proposal for a Centralised Pension Payment System (CPPS) for the Employees’ Pension Scheme, 1995. Following this, the facility will be accessible to employees starting in the new year. Approximately 78 lakh pensioners will gain from the execution of CPPS. As per the EPFO Assistant Commissioner, the existing system has each EPFO zonal and regional office established with merely three to four banks at the personal level. When a retired worker returns to his hometown, he encounters challenges in accessing his pension because there’s no bank branch (a bank associated with EPFO) available.
Nevertheless, post-implementation of CPPS, obtaining a pension will become simpler. When the pension is made available, it will be promptly deposited into the bank specified by the employees in their paperwork. The pensioner need not be concerned if they switch or transfer to a different bank or branch. CPPS ensures pension distribution throughout India.
The new system will help employees
Since there is no requirement to move the Pension Payment Order (PPO) between offices. EPFO anticipates that the introduction of the new system will lead to significant savings in pension disbursements.
Who are eligible?
The worker needs to be a part of EPFO. Should have finished 10 years of employment. Must be 58 years old. Upon reaching 50 years, he can additionally access his EPS at a decreased rate. His pension may be extended for an additional two years (until he turns 60 years old). Following this, he will receive an extra pension of 4 percent each year.
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