Centre announces successful trial run of new pension system

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Last Updated11/11/2024

The pilot run of the proposed Centralised Pension Payments System (CPPS) under the employees’ pension scheme (EPS) of the Employees Provident Fund Organisation (EPFO) is successful, the Union Labour Ministry said on Friday, November 8, 2024.

On November 8, 2024, the Union Labour Ministry announced the successful pilot run of the Centralised Pension Payments System (CPPS) under the Employees’ Pension Scheme (EPS) of the Employees Provident Fund Organisation (EPFO). The pilot was conducted in Jammu, Srinagar, and Karnal regions, disbursing over ₹11 crore in pensions to 49,000 EPS pensioners for October 2024.

Launch and Success: The pilot run of CPPS, completed on October 29-30, marks a significant step in EPFO’s modernisation efforts. Union Labour Minister Mansukh Mandaviya highlighted the initiative’s success as a key milestone toward an efficient pension disbursement mechanism.
Nationwide Implementation: CPPS is expected to roll out nationwide by January 2025, benefiting over 78 lakh EPS pensioners. The new system enables pensioners to receive their pensions from any bank or branch across India.

Centralised Disbursement: CPPS replaces the older decentralised system, where EPFO had agreements with multiple banks, with a unified and streamlined payment process.
Ease of Access for Pensioners: CPPS eliminates the need for pensioners to visit banks for verification when starting their pensions. Pensions will be credited directly and promptly upon release.
Location and Bank Flexibility: Pensioners can receive their payments without the need for transferring Pension Payment Orders (PPO) when they relocate or switch banks or branches. This feature offers relief to retirees who move back to their hometowns post-retirement.

Mr. Mandaviya emphasized that CPPS addresses longstanding issues faced by EPFO pensioners and exemplifies EPFO’s commitment to becoming a tech-enabled and responsive organization. This transformation is part of EPFO’s mission to serve its members and pensioners more effectively, ensuring a seamless pension experience across India.