There’s good news for pensioners under the Employees’ Pension Scheme (EPS)-1995.
Starting January 1, 2025, pensioners will be able to withdraw their pension from any bank branch across the country.
This is thanks to the Central Government’s approval of the Centralized Pension Payment System (CPPS) on September 4.
This new rule is expected to benefit over 78 lakh people covered by EPS.
No More Need to Transfer PPO
Experts say the implementation of CPPS will greatly help EPS pensioners.
Pensioners will no longer need to transfer their Pension Payment Order (PPO) when they move to a new place or change banks.
This is a long-standing demand from pensioners that the government has now fulfilled.
Who is Eligible for Pension Under EPS?
EPS provides pensions to individuals who retire after working in private companies.
During their job, employees contribute to the Employees’ Provident Fund (EPF), which has two parts: the Provident Fund
and EPS. Upon retirement, employees receive the money from their Provident Fund as a lump sum, while they receive a monthly pension from EPS.
Government’s Efforts to Improve EPFO Facilities
Union Minister Mansukh Mandaviya highlighted that the approval of CPPS is a significant step towards modernizing the services of the Employees’ Provident Fund Organisation (EPFO).
Pensioners will now find it more convenient to withdraw their pension from any bank branch, whereas earlier, transferring PPOs was a lengthy and difficult process.
Future Plans: Aadhaar-Based Payment System (ABPS)
EPFO is moving towards a centralized IT-enabled system (CITES 2.01), as its current system is decentralized and only works with select banks.
In the next phase, EPFO plans to introduce the Aadhaar-Based Payment System (ABPS) to simplify pension disbursement.
To be eligible for an EPS pension, an employee must have worked for at least 10 years and retire at the age of 58.
After retirement, they will receive a monthly pension from EPS.
