look news india
New Pension System: Private sector employees have got a big relief. It is going to be easier to get pension from EPFO's pension scheme EPS after retirement. This change will come into effect from next year i.e. January 1, 2025, after which it will become easier to get pension from any branch of any bank. The central government has approved this new system.
Actually, the central government had received a proposal from the Centralized Pension Payment System (CPPS) regarding the Employees' Pension Scheme (EPS) 1995. Under this proposal, a system of withdrawing pension from any branch of any bank was to be implemented, which has been approved by the government. This will help EPS pensioners to withdraw their pension from any bank, branch or place in India from January 1, 2025. This is a big change for private sector employees.
More than 78 lakh people will benefit
This system is expected to benefit over 78 lakh EPS pensioners of EPFO. By using better IT and banking technology, it will provide a more efficient, seamless and user-friendly experience for pensioners. Union Minister Dr. Mansukh Mandaviya said that the approval of the Centralized Pension Payment System (CPPS) is an important milestone in the modernization of EPFO.
He further added that by enabling pensioners to receive their pension from any bank, any branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and creates a seamless and efficient delivery system. This is a significant step in our ongoing efforts to transform EPFO into a more robust and tech-enabled organisation, committed to better serving the needs of its members and pensioners.”
How will this work?
CPPS is completely different from the existing pension payment system, in which the regional/regional office of EPFO directly makes separate agreements with only 3-4 banks. At the same time, with this system, pensioners will not need to go to any verification branch at the time of starting the pension. The money will be deposited in the account immediately after the pension is released. Apart from this, EPFO hopes that the pension distribution cost will also come down after moving to the new system.
What is Centralised Pension Payment System?
Centralized Pension Payment System (CPPS) is an initiative of the Center, which will launch a system at the national level. This system facilitates pension payment through any bank or branch located in India. This facility will be launched from January 1, 2025, as part of EPFO's ongoing IT modernization project IT Enabled System (CITES 2.01).