Good news for lakhs of pensioners. The Centralized Pension Payment System (CPPS) is set to make life a lot easier for over 78 lakh EPFO pensioners in India, allowing them to access their pensions from anywhere. With this system, pensioners can receive their payments from any bank or branch, streamlining the whole process and making it much more convenient. Starting from January 1, 2025, there will be no need for Pension Payment Order (PPO) transfers anymore.
What’s the Centralized Pension Payment System (CPPS)?
The CPPS is a game changer for pension payments across India. It enables pensioners to receive their funds at a national level, meaning they can choose any bank or branch for their payments.
Who benefits from this?
This new setup will benefit more than 78 lakh EPFO EPS pensioners. By leveraging modern IT and financial technology, the system aims to provide a smoother, simpler, and more user-friendly experience, especially for retirees who move back to their hometowns after retirement. It’s a significant relief for them.
When does it start?
The new system is effective from January 1, 2025, as part of the Centralized IT Enabled System (CITES 2.01) of EPFO.
No more PPO transfers
With the CPPS, pensioners won’t have to worry about transferring their Pension Payment Order (PPO) if they change banks or move. Their pensions will be disbursed without any delays or complications.
EPS Contributions
Both employees and employers contribute to the Employees’ Pension Scheme (EPS). Employees put in 12% of their basic salary, including dearness and retaining allowances, into the EPF. Employers match that with another 12%, where 8.33% goes to EPS and 3.67% to EPF. The EPS benefits are available only to EPF members whose basic salary is below Rs 15,000 per month as of September 1, 2014. The CPPS will give pensioners the flexibility to access their pensions without the hassle of transfers.
