Big facility to pensioners from January 1, 2025, CPPS system implemented

There is relief news for the pensioners covered under the Employees’ Pension Scheme (EPS) 1995. Now pensioners will be able to get their pension from any bank or its branch in India from January 1, 2025. The Employees’ Provident Fund Organization (EPFO) has approved the Centralized Pension Payment System (CPPS) to implement this facility. This step will provide more flexibility and convenience to pensioners in receiving pension.

What is Centralized Pension Payment System (CPPS)?

CPPS is a national level system, which allows pensioners to get pension from any bank or its branch in India.

• This system will operate under the Centralized IT Enabled System (CITES 2.01) of EPFO.
• The pension process will be made simple and fast through CPPS.

Which EPS pensioners will benefit?

More than 78 lakh EPFO ​​EPS pensioners will get direct benefits from this new system.

• This will be especially useful for those pensioners who have shifted to their hometown or any other place after retirement.
• Now pensioners will not need to transfer Pension Payment Order (PPO) while changing bank or branch.

Features of CPPS

1. Pensioners’ Flexibility:
   • Pensioners can get their pension from any bank or branch in India.
2. No need for PPO transfer:
   • Now there will be no need to transfer PPO if you change bank or shift.
3. Speed ​​and Transparency:
   • The CPPS system will make the pension process faster and more transparent.

Modernization of EPFO

Union Labor Minister Dr. Mansukh Mandaviya described this new system as an important step towards the modernization of EPFO.

• This will solve the problems of pensioners and make the pension distribution process effective.
• After CPPS system, EPFO ​​will also launch Aadhar Based Payment System (ABPS).

Contribution to EPS: How does it work?

Under the EPS scheme, both the employee and the employer contribute.

• Employee:
  • Deposits 12% of his basic salary, dearness allowance and other allowances in EPF.
• employer:
  • Contributes 12%, of which 8.33% goes to EPS and 3.67% to EPF.
• The benefit of this scheme is available to those employees whose monthly basic salary is ₹ 15,000 or less.

When will the new system be implemented?

• The CPPS system will be implemented from January 1, 2025.
• Pensioners will be able to avail the benefit of this new facility from next year.