The Employees’ Provident Fund Organisation (EPFO) has officially launched the Centralized Pension Payments System (CPPS) under the Employees’ Pension Scheme 1995, enhancing convenience for millions of pensioners across the country.
Key Features of the CPPS
- Seamless Pension Access: Pensioners can now access their pension from any bank, any branch, anywhere in the country.
- No Need for Physical Verification: The new system eliminates the need for pensioners to visit banks for physical verification, simplifying the entire pension disbursement process.
- Nationwide Disbursement: Pension payments will be made throughout India without the need to transfer Pension Payment Orders (PPO) between different EPFO offices, even when a pensioner changes their location or bank.
Benefits for Pensioners
- Ease of Movement: The CPPS ensures that pensioners who relocate to their hometowns after retirement will face no issues in receiving their pension.
- Improved Service Delivery: The move is expected to benefit over 7.85 million pensioners, offering a more efficient and transparent system.
Minister’s Statement
Labour and Employment Minister Mansukh Mandaviya described the full-scale implementation of CPPS as a “historic milestone” in modernizing EPFO services. He emphasized that the system aligns with the vision of a “tech-enabled and member-centric EPFO.”
Pilot Programs and Rollout
- First Pilot (October 2024): The first pilot of CPPS was conducted in the Karnal, Jammu, and Srinagar regional offices, where Rs 11 crore was disbursed to over 49,000 pensioners.
- Second Pilot (November 2024): A second pilot in 24 regional offices saw the disbursement of around Rs 213 crore to more than 9.3 lakh pensioners.
Transition from Decentralized System
Previously, EPFO’s pension disbursement system was decentralized, with each regional office maintaining separate agreements with a limited number of banks. The CPPS replaces this system, offering broader access to pensioners and immediate crediting of pensions upon release.
Multiple-Choice Questions (MCQs):
1. What is the main feature of the Centralized Pension Payments System (CPPS) introduced by EPFO?
A) Pensioners must visit the bank for verification
B) Pension payments are disbursed only in select banks
C) Pensioners can access their pension from any bank or branch across the country
D) Pensioners must transfer their PPO between offices
Answer: C) Pensioners can access their pension from any bank or branch across the country
2. How many pensioners are expected to benefit from the CPPS rollout?
A) 1 million
B) 5 million
C) 7.85 million
D) 10 million
Answer: C) 7.85 million
3. What was the total pension disbursed during the first pilot of CPPS in October 2024?
A) Rs 11 crore
B) Rs 213 crore
C) Rs 50 crore
D) Rs 100 crore
Answer: A) Rs 11 crore
4. Which of the following is a key benefit of the CPPS for pensioners?
A) Pension payments are delayed
B) Pensioners need to visit the bank for verification
C) Pension payments are immediately credited upon release
D) Pensioners must transfer their PPO to new offices
Answer: C) Pension payments are immediately credited upon release
5. What was the second pilot of CPPS conducted in November 2024?
A) In Karnal and Jammu
B) In 24 regional offices
C) In select branches of three banks
D) In all regional offices across India
Answer: B) In 24 regional offices