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This update follows the introduction of the new Centralised Pension Payment System (CPPS), approved by Union Minister Mansukh Mandaviya.
The new EPS rules will benefit over 78 lakh pensioners, making it easier for them to receive pensions regardless of location or bank. Under the CPPS, pensioners will no longer need to transfer Pension Payment Orders (PPOs) when moving or changing banks, addressing long-standing issues faced by retirees.
Mandaviya emphasised the importance of this change.
“The approval of the CPPS is a crucial milestone in modernizing the EPFO. Pensioners will now enjoy a hassle-free experience, receiving their pensions from any bank branch in the country,” he said.
Key benefits of the new EPS pension rules:
Pensions accessible anywhere: Pensioners can receive their pensions from any bank or branch in India.
No PPO Transfers: Pensioners won’t need to transfer their PPO when relocating or switching banks.
Immediate pension credit: Pensions will be credited immediately upon release, with no need for branch visits for verification.
This new system is part of the EPFO’s Centralized IT Enabled System (CITES 2.01) and marks a shift from the existing decentralised setup, which had separate agreements with only a few banks.
The transition to an Aadhaar-based payment system (ABPS) is expected in the next phase, further streamlining pension disbursements.
Understanding EPS pension
Under EPS, both the employer and employee contribute to the scheme, with the employer’s contribution being divided between EPF and EPS.
Employees are eligible for pension benefits after completing 10 years of service and upon reaching the age of 58.
There are provisions for early pensions, disability pensions, and family pensions under the scheme.
EPS is particularly beneficial for workers in private and public sector companies, offering financial support post-retirement.
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