Mansukh Mandaviya Approves New Centralised Pension Payment System for India
Union Minister of Labour and Employment Mansukh Mandaviya and Chairperson of the Central Board of Trustees, EPF, have approved a Centralised Pension Payment System (CPPS) under the Employees’ Pension Scheme, 1995. This initiative will establish a national-level centralised system, allowing pension disbursement through any bank or branch across India.
Mandaviya stated, “The approval of the Centralised Pension Payment System (CPPS) marks a significant milestone in the modernization of the EPFO. By enabling pensioners to receive their pensions from any bank, any branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism.”
He added, “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.”
The CPPS is expected to benefit over 7.8 million EPS pensioners of EPFO. By leveraging advanced IT and banking technologies, it aims to provide a more efficient and user-friendly experience for pensioners. The CPPS will also ensure seamless pension disbursement across India, eliminating the need to transfer Pension Payment Orders (PPO) when a pensioner relocates or changes their bank or branch. This will be a significant relief for pensioners who move to their hometowns post-retirement.
This facility will be launched on January 1, 2025, as part of EPFO’s ongoing IT modernization project, Centralised IT Enabled System (CITES 2.01). In the following phase, CPPS will enable a smooth transition to an Aadhaar-based payment system (ABPS).
The CPPS marks a significant departure from the current decentralised pension disbursement system, where each EPFO Zonal/Regional Office maintains separate agreements with only 3-4 banks. Pensioners will no longer need to visit branches for verification at the start of their pension, as it will be credited immediately upon release. Additionally, EPFO anticipates a significant reduction in disbursement costs with the new system.
Doubts Revealed
Mansukh Mandaviya -: Mansukh Mandaviya is an important person in the Indian government. He is the Union Minister of Labour and Employment, which means he helps make rules and decisions about jobs and workers in India.
Centralised Pension Payment System (CPPS) -: The Centralised Pension Payment System (CPPS) is a new way for retired people to get their pension money. It will make it easier for them to receive their pensions from any bank or branch in India.
Employees’ Pension Scheme, 1995 -: The Employees’ Pension Scheme, 1995 is a plan that helps workers save money for their retirement. When they stop working, they get a regular payment called a pension.
pensioners -: Pensioners are people who have retired from their jobs and receive regular payments called pensions. These payments help them with their living expenses after they stop working.
7.8 million -: 7.8 million means 78 lakh. It is a big number that shows how many pensioners will benefit from the new system.
January 1, 2025 -: January 1, 2025 is the date when the new Centralised Pension Payment System will start. From this day, pensioners can use the new system to get their pensions.
IT and banking technologies -: IT stands for Information Technology, which includes computers and software. Banking technologies are tools and systems used by banks to manage money. Together, they will make the new pension system work better and faster.
