CPPS: Centralized Pension Payment System (CPPS) will allow more than 78 lakh EPFO pensioners in India to collect pension from anywhere. This system allows pensioners to take pension from any bank or branch. This will make the pension payment process more efficient, easier and hassle-free. Under this system implemented from January 1, 2025, PPO transfer will no longer be required.
What is Centralized Pension Payment System (CPPS)?
Centralized Pension Payment System has brought a big change in India. This system provides pension payment facility at the national level. Under this, pension can be taken through any bank or branch.
Which EPS pensioners will get the benefit?
This facility would benefit more than 78 lakh EPFO EPS pensioners. Using the latest IT and financial technology, the process will provide pensioners a more efficient, simpler and user-friendly experience. Especially for those retired people who get transferred to their home after retirement. This process can prove to be a great relief.
When will it be implemented?
This new facility has been implemented from January 1, 2025 under the Centralized IT Enabled System (CITES 2.01) of EPFO.
Now no need for PPO transfer
Even if pensioners transfer or change banks or branches, CPPS will distribute the pension without any delay or hassle. For this, there will be no need to transfer the Pension Payment Order (PPO) from one office to another.
Both employees and employers contribute to the Employees’ Pension Scheme (EPS). Employees contribute 12% of their basic salary, dearness allowance and retaining allowance to EPF.
Employers also contribute 12% of the salary, of which 8.33% goes to EPS and 3.67% to EPF. The benefit of EPS scheme is available only to those EPF members whose basic salary does not exceed Rs 15,000 per month as of September 1, 2014. CPPS will provide flexibility to pensioners in taking pension and will eliminate the hassle of transfer.
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