Good News EPFO: The Centralized Pension Payment System (CPPS) to be implemented by the Employees’ Provident Fund Organization (EPFO) will benefit those pensioners who move to their hometown after retirement.
In the new system, pensioners will no longer need to go to different bank branches for verification at the time of starting pension. After the Pension Payment Order (PPO) is issued, pension can be started from the bank located near the home.
In the current system, when an employee related to EPFO retires, a fixed pension is given per month under the Employees’ Pension Scheme- 1995. Till now, to withdraw his pension, the retired employee has to come to the bank branch related to the area from which he has retired. Actually, EPFO has been divided into different regional offices.
Only a few selected (three or four) bank branches in each regional office are authorized for pension withdrawal, due to which many people have to face problems. Since, after retirement, most of the employees start living in their village or some other part, they have to make rounds for pension withdrawal.
Also Read: New PPF rules from October 1, 2024: Three major changes to Public Provident Fund rules
Aadhaar based payment system will also come
The new facility will be launched from January 1, 2025 as part of EPFO’s ongoing information technology modernization project Centralized IT Enabled System (CITES 2.01). In the next phase, CPPS will bring a smooth transition to Aadhaar-based payment system.
With the introduction of the new system, pensioners will not need to transfer their Pension Payment Order (PPO) from one office to another. Currently, if a person goes to another region after retirement, he has to transfer his PPO to that regional office. After that, that office allocates a bank branch from which the pension can be withdrawn. All this hassle will end in the new system.
‘milestone’
Union Labor Minister Dr. Mansukh Mandaviya said that the new system is a milestone in the direction of modernization of EPFO. It will solve the long-standing problems of pensioners.
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