Context: The Ministry of Labor and Employment has approved the implementation of the Centralized Pension Payment System (CPPS) for the Employees’ Pension Scheme (EPS).

About Centralized Pension Payment System (CPPS)

• The Centralized Pension Payment System (CPPS) is a national-level system designed to improve pension disbursements under the Employees’ Pension Scheme (EPS).

Key Features

• Launch Date: CPPS will be operational from January 1, 2025, under the Employees’ Provident Fund Organization (EPFO) as part of the Centralized IT Enabled System (CITES 2.01).

• Pension Accessibility: This system allows pensioners to receive their pensions from any bank, any branch, regardless of their location, enhancing convenience and accessibility.

• Modernization: The CPPS is part of EPFO’s effort to modernize its pension payment system, which is currently decentralized. Each regional/zonal office has its own agreements with a few banks, limiting pensioner flexibility.

• Unified System: Under CPPS, pensions will be credited directly to the pensioner’s account immediately after approval. Pensioners won’t need to visit branches for verification, reducing administrative burdens.

• Relocation Convenience: CPPS eliminates the need to transfer Pension Payment Orders (PPO) when pensioners move or change banks, ensuring uninterrupted pension delivery.

• Future Transition: The system will eventually transition to an Aadhaar-based payment system (ABPS), streamlining disbursements even further.

Eligibility Criteria for EPS Pension

• EPFO Membership: Must be a member of the Employees’ Provident Fund Organization (EPFO).

• Years of Service: Must have completed at least 10 years of service.

• Age: Full pension at 58 years, reduced pension at 50 years, option to defer pension up to 60 years with a 4% yearly increase.

Benefits to EPS Pensioners

• Pensioners can receive their pensions from any bank or branch across India.

• Over 78 lakh EPS pensioners will benefit from a seamless, efficient experience.

• The centralized system will reduce EPFO’s administrative costs while providing cost savings on pension payouts.

• Pensioners who relocate post-retirement will continue receiving their pensions without interruptions.