EPS pensioners will be able to get their pensions from any bank, branch, or location in India from January 1, 2025.
This comes as the Union Minister of Labour and Employment and the Chairperson of the EPF’s Central Board of Trustees have approved the proposal for a Centralized Pension Payment System (CPPS) for the Employees’ Pension Scheme, 1995.
What is the Centralized Pension Payment System (CPPS)?
The CPPS provides a national-level centralized system allowing pension payouts through any bank or branch in India.
This replaces the current decentralized pension disbursement system, where each EPFO Zonal/Regional Office maintains individual arrangements with just three to four banks.
The next stage of CPPS will also include an easy switch to an Aadhaar-based payment system (ABPS).
Who will the Centralized Pension Payment System (CPPS) benefit?
The CPPS is estimated to benefit more than 78 lakh EPFO EPS pensioners, and will particularly benefit retirees who relocate to their hometown after retirement.
Pensioners also won’t have to go to the branch for any kind of verification when their benefits start, and the pension will be credited right away after release.
The EPFO also anticipates that switching to this new system will result in large cost savings in terms of pension payouts.
Who is eligible for pension?
Individuals have to fulfil the following criteria to be eligible for availing benefits under the Employees’ Pension Scheme (EPS).
- Should be a member of EPFO
- Should have completed 10 years of service
- Has reached the age of 58
They can also withdraw the EPS at a reduced rate from the age of 50 years, and can also defer the pension for two years (up to 60 years of age) after which they will get a pension at an additional rate of 4% for each year.
Source: Hindustan Times
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