EPS Pensioners can now receive pension from any bank branch across India

The Union Minister of Labour and Employment, along with the Chairperson of the EPF’s Central Board of Trustees, has approved a major update for the Employees’ Pension Scheme (EPS), 1995. Starting January 1, 2025, a new Centralized Pension Payment System (CPPS) will allow EPS pensioners to receive their pensions from any bank, branch, or location across India. This announcement was made in a Press Information Bureau release on September 4, 2024.

What is the Centralized Pension Payment System (CPPS)?

The CPPS is a game-changer for pensioners. Instead of relying on the current system where pension disbursement is handled through just a few banks at each EPFO Zonal/Regional Office, the CPPS introduces a centralized, national-level system. This means that pensioners can access their pensions through any bank or branch in India, providing greater convenience and flexibility.

Benefits of the New System

1. Nationwide Accessibility: Starting January 1, 2025, pensioners will no longer need to stick to a specific bank branch or location. Whether they move to a new city or even a remote area, they can still receive their pension seamlessly.
2. Improved Efficiency: The new system leverages advanced IT and financial technologies, ensuring that pension payments are processed quickly and accurately. Retirees will no longer have to visit branches for verification, as pensions will be credited directly to their accounts.
3. Cost Savings: The transition to CPPS is expected to reduce the costs associated with pension payouts, thanks to the streamlined, centralized approach.
4. Future-Ready: The CPPS is part of the EPFO’s Centralized IT Enabled System (CITES 2.01), an ongoing IT modernization initiative. It will also facilitate an easy switch to the Aadhaar-based payment system (ABPS), making pension management even more efficient.
5. Seamless Transfers: If a pensioner relocates or changes banks, the CPPS ensures that pension payments continue without the need to transfer Pension Payment Orders (PPOs) between offices.

Statement from the Union Minister

Union Minister Dr. Mansukh Mandaviya expressed his enthusiasm about the new system, saying, “The approval of the Centralized Pension Payment System (CPPS) marks a significant milestone in the modernization of the EPFO. By enabling pensioners to receive their pensions from any bank, any branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism. This is a crucial step in our ongoing efforts to transform the EPFO into a more robust, responsive, and tech-enabled organization, committed to serving the needs of its members and pensioners better.”

Eligibility for EPS Benefits

To qualify for benefits under the Employees’ Pension Scheme (EPS), individuals must meet the following criteria:

• Be a member of the EPFO
• Have completed at least 10 years of service
• Have reached the age of 58

Pensioners also have the option to withdraw EPS at a reduced rate from the age of 50 or defer their pension for up to two years (until age 60) to receive an additional 4% for each year deferred.

With these changes, members who have contributed to the EPS can look forward to a more reliable and accessible pension experience, ensuring a consistent income throughout their retirement.