EPFO Launches Centralised Pension Payments System

January 4, 2025

The Employees’ Provident Fund Organisation (EPFO) has successfully rolled out its Centralised Pension Payments System (CPPS) across India. This initiative benefits over 68 lakh pensioners and modernises the pension disbursement process. The CPPS allows pensioners to withdraw their pensions from any bank branch, ensuring seamless and efficient service. Union Minister Mansukh Mandaviya praised this reform, emphasising its significance in simplifying pension services.

Overview of CPPS

The Centralised Pension Payments System represents a major overhaul of the previous decentralised pension disbursement framework. Previously, regional offices had limited agreements with banks, restricting pensioners’ access to their funds. The CPPS eliminates these limitations, allowing all pensioners to access their pensions from any bank branch across the country.

Key Features of the CPPS

Pensioners benefit from several key features under the CPPS. The system ensures that pension amounts are credited directly to beneficiaries’ accounts without the need for physical verification. This change streamlines the process, reducing the burden on pensioners to visit banks for verification purposes.

Benefits for Relocating Pensioners

One of the primary advantages of the CPPS is its ability to accommodate pensioners who relocate. Starting January 2025, pensioners will receive payments uninterrupted, even if they change their location or bank branch. This feature is particularly beneficial for those returning to their hometowns after retirement.

Successful Pilot Programs

Before the full rollout, the EPFO conducted two pilot programs to test the CPPS. The first pilot in October 2024 involved regional offices in Karnal, Jammu, and Srinagar, disbursing Rs 11 crore to over 49,000 pensioners. The second pilot in November 2024 included 24 regional offices and disbursed Rs 213 crore to more than 9.3 lakh pensioners. These pilots validated the system’s effectiveness prior to its nationwide implementation.

Full-Scale Implementation and Impact

The full-scale rollout of the CPPS occurred in December 2024. During this phase, the EPFO disbursed Rs 1,570 crore to over 68 lakh pensioners. This marks a historic milestone in pension service delivery, improving access for beneficiaries across India.

CPPS allows pensioners to access funds from any bank.
Physical verification for pension commencement is eliminated.
Pensioners moving locations will face no payment disruptions.
Two pilot programs tested CPPS before full rollout.
Rs 1,570 crore disbursed during the full-scale implementation.

Future Reforms and Goals

The CPPS is part of EPFO’s broader strategy to enhance services for EPS pensioners. The organisation aims to further simplify pension disbursement and improve accessibility. The successful implementation of the CPPS reflects EPFO’s commitment to modernising its services, aligning with a vision of tech-driven and member-centric support for all beneficiaries.

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