In the next phase, CPPS will enable a smooth transition to the Aadhaar-based payment system (ABPS), the ministry of labour and employment said in a statement. The move is aimed at enhancing the ease of living and a significant cost reduction in pension disbursement cost for the Employees’ Provident Fund Organisation.
“The approval of the centralized pension payment system (CPPS) marks a significant milestone in modernization of the Employees’ Provident Fund Organisation (EPFO),” the ministry said, quoting the minister.
“This initiative addresses the long-standing challenges faced by pensioners and will ensure a seamless and efficient disbursement mechanism,” the minister said.
As per the statement, this is a crucial step in the ministry’s 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.
By harnessing advanced IT and banking technologies, the centralized pension payment system will offer a more efficient, seamless, and user-friendly experience for pensioners.
Besides, it will also ensure disbursement of pension throughout India without any need for transfer of Pension Payment Orders (PPO) from one office to another even when the pensioner moves from one location to another or changes his bank or branch.
“This would be a great relief to pensioners who move to their hometown after retirement,” it added.
The CPPS is a paradigm shift from the existing pension disbursement system that is decentralized, with each zonal or regional office of EPFO maintaining separate agreements with only three-four banks.
Under this system, the pensioners will not be required to visit the branch for any verification at the time of commencement of pension and the pension shall be immediately credited upon release.
