Starting January 1, 2025, pensioners under the Employees' Pension Scheme, 1995, will be able to withdraw their pensions from any bank and any branch nationwide. The Minister of Labour and Employment and Chairperson, Central Board of Trustees, EPF, approved the Centralised Pension Payment System (CPPS) on September 4, benefiting over 78 lakh pensioners with a more efficient and user-friendly pension disbursement process.
"By enabling pensioners to receive their pensions from any bank, branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism,” said Labour and Employment Minister Mansukh Mandaviya.
This initiative is part of the Centralised IT Enabled System (CITES 2.01), EPFO’s ongoing IT modernisation project.
“This is a crucial step in our ongoing efforts to transform the EPFO into a more robust, responsive, and tech-enabled organisation, committed to serving the needs of its members and pensioners better,” Mandaviya added.
What changes with the new CPPS?
The CPPS replaces the existing decentralised system. In the current system, each Zonal or Regional Office of the EPFO maintains separate agreements with a few banks. Under the CPPS, pensioners will benefit from a streamlined process that eliminates the need to transfer Pension Payment Orders (PPOs) between offices, even when the pensioners relocate or change their bank or branch. This is particularly advantageous for those who return to their hometowns after retirement, as it ensures seamless pension disbursement across the country.
With the CPPS, pensioners will no longer need to visit branches for verification when their pension begins, and payments will be credited immediately upon release. Additionally, the EPFO anticipates a significant reduction in pension disbursement costs after transitioning to this new system.
The introduction of centralised pension payments will also pave the way for a smooth transition to an Aadhaar-based payment system (ABPS) in the next phase, further streamlining the pension disbursement process.
