The Employees’ Provident Fund Organisation (EPFO) has launched a new system called CPPS to make it easier for pensioners to receive their payments.
Here's a simple explanation:
What is CPPS? It stands for Centralised Pension Payments System. It's a new way for the EPFO to send pension payments to people.
Who benefits from this? Over 68 lakh (6.8 million) pensioners in India.
What was the old system like? It was decentralized, meaning different regional offices had agreements with different banks. This limited where pensioners could withdraw their money.
How is CPPS different? It's centralized, meaning all pensioners can now access their pension from any bank branch across India.
What are the key features of CPPS?
Direct Bank Transfers: Pension money is sent directly to pensioners' bank accounts.
No Physical Verification: Pensioners no longer need to visit banks to verify their identity to receive their pension.
Uninterrupted Payments for Relocating Pensioners: Starting January 2025, if a pensioner moves to a different location or changes their bank, their payments will continue without interruption.
Why is this helpful for relocating pensioners? Many people move back to their hometowns after retirement. CPPS ensures they can still easily access their pension.
Were there any test runs before the full launch? Yes, the EPFO conducted two pilot programs:
First Pilot (October 2024): Involved regional offices in Karnal, Jammu, and Srinagar, distributing Rs 11 crore to over 49,000 pensioners.
Second Pilot (November 2024): Included 24 regional offices, distributing Rs 213 crore to more than 9.3 lakh pensioners.
When was the full-scale implementation? December 2024.
How much money was disbursed during the full launch? Rs 1,570 crore was sent to over 68 lakh pensioners.
Who is Mansukh Mandaviya? He is a Union Minister who praised the CPPS reform.
What are the future goals for EPFO? To further simplify pension payments and make them even more accessible. They want to use technology to provide better support to pensioners.
In simple terms: The EPFO has launched a new system called CPPS that makes it much easier for pensioners to receive their money. Now, they can withdraw their pension from any bank in India, and they don't have to go to the bank to verify their identity anymore. This is especially helpful for people who move after they retire. The system was tested in pilot programs before being launched nationwide. This is a big improvement in how pensions are handled in India.