Pension can be taken from any bank in the country, 78 lakh pensioners will benefit; will be implemented from January 25
EPFO: The government has given a gift to lakhs of pensioners covered under the pension scheme of the Employees' Provident Fund Organization (EPFO). Now pensioners will be able to take a pension from any bank or its branch. This will come into effect from January 25. Union Labor Minister Mansukh Mandaviya has given this information. He said that this initiative will solve the long-standing problems of pensioners.
Labour Minister Mansukh Mandaviya said on Wednesday that the pensioners covered under the pension scheme of the Employees' Provident Fund Organisation (EPFO) can take a pension from any bank or its branch from January. The labor ministry in a statement said Mandaviya has given approval to the proposal for CPPS for EPS, 1995. He is also the chairperson of CBT, the apex decision-making body of EPFO.
The Centralized Pension Payment System will enable pension payments by any bank through any of its branches anywhere in the country. Thus, the Minister added, 'The approval of CPPS is one milestone in the modernization initiative taken by EPFO. Under this, pensioners will be able to get their pension from any bank, or any branch anywhere in the country. This initiative will solve the long-standing problems of pensioners.'.
He further said that this is an important step towards our efforts to transform EPFO into a more robust, responsive, and technology-enabled organization for better meeting the needs of its members and pensioners. More than 78 lac EPS-95 pensioners of the EPFO are likely to benefit from the centralized pension payment system.
This would ensure seamless dissemination of pension across the country without transferring the PPO from one office to another. This will be a major boon to the pensioners who often migrate to their hometown upon retirement. The facility shall be launched w.e.f 01.01.2025 as part of the ongoing information technology modernization project Centralized IT Empowered System (CITES 2.01) of EPFO.
The next step would be seamless migration to the ABPS, CPPS explains. The new system is a sea of difference from the pension existing disbursal process wherein every Regional/ Zonal Office of the EPFO had to necessarily enter into a separate agreement(s) with only three-four banks. It said that henceforth, pensioners would not have to visit the bank branch for verification at the time of pension commencement and the payment would be credited straightaway upon issuance. With this more, EPFO expects the new system to drastically reduce the cost of pension disbursement.
