This choice, which has been taken and permitted by Mansukh Mandaviya, Labour Minister and Chairman of Central Board of Trustees, EPF, is anticipated to learn over 78 lakh EPS pensioners of Worker Provident Fund Organisation (EPFO). In 2023-24, the whole pension payout underneath EPS for these over 78 lakh pensioners was over ₹15,000 crore.
The CPPS marks a serious shift by establishing national-level centralised system, enabling pension disbursement by means of any financial institution, any department throughout India, Mandavia stated.
The CPPS is a paradigm shift from the prevailing pension disbursement system that’s decentralised, with every zonal/regional workplace of EPFO sustaining separate agreements with solely 3-4 banks.
The CPPS would additionally guarantee disbursement of pension all through India with none want for switch of Pension Fee Orders (PPO) from one workplace to a different even when the pensioner strikes from one location to a different or modifications his financial institution or department. This could be a fantastic reduction to pensioners who transfer to their hometown after retirement.
Modernisation of the EPFO
“The approval of the CPPS marks a major milestone in modernisation of the EPFO. By enabling pensioners to obtain their pensions from any financial institution, any department, anyplace within the nation, this initiative addresses the long-standing challenges confronted by pensioners and ensures a seamless and environment friendly disbursement mechanism,” Mandaviya stated.
It is a essential step within the authorities’s ongoing efforts to rework the EPFO right into a extra sturdy, responsive, and tech-enabled organisation, dedicated to serving the wants of its members and pensioners higher, he added.
At present, varied regional places of work of EPFO had created their very own database. There was no frequent database on the nationwide stage. With this newest approval, there shall be a typical centralised database of pensioners created, sources stated.
This CPPS facility shall be launched as a part of EPFO’s ongoing IT modernisation challenge Centralised IT Enabled System (CITES 2.01) from January 1, 2025. Within the subsequent section, CPPS will allow a easy transition to Aadhaar-based fee system (ABPS), Mandaviya stated.
“By harnessing superior IT and banking applied sciences, it’ll provide a extra environment friendly, seamless, and user-friendly expertise for pensioners,” he stated.
There can even be no want for pensioners to go to the department for any verification on the time of graduation of pension and the pension shall be instantly credited upon launch. As well as, EPFO expects a major value discount in pension disbursement after shifting to the brand new system.
The newest choice of Mandaviya is the second of the six modules which can be to be carried out underneath the CITES 2.01. The primary module, launched in mid August 2024, associated to simplification of give up of exemption from EPF scheme.
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