Centre Successfully Trials Centralised Pension Payments System Nationwide

Why in the news?

The Union Labour Ministry announced the successful trial of CPPS under EPFO, disbursing ₹11 crore to 49,000 pensioners, aiming for nationwide implementation by January 2025 for improved pension access.

Centre Successfully Trials Centralised Pension Payments System Nationwide

Overview of the Pilot Run:

  • The Central Government has successfully tested the new Centralised Pension Payments System (CPPS) under the Employees’ Pension Scheme (EPS), as announced by the Union Labour Ministry.
  • During this pilot, over ₹11 crore was disbursed to 49,000 EPS pensioners in Jammu, Srinagar, and Karnal regions for October 2024.
  • The trial, completed on October 29 and 30, indicates readiness for national rollout.

Nationwide Rollout by January 2025

  • The CPPS system is set for nationwide implementation by January 2025, aiming to benefit over 78 lakh EPS pensioners.
  • This system enables pensioners to receive payments from any bank or branch across India, enhancing accessibility and convenience.
  • Union Labour Minister Mansukh Mandaviya emphasised that this initiative addresses longstanding issues faced by pensioners and promotes a smooth, tech-enabled payment process.

About Centralised Pension Payment System (CPPS):

  • Centralised pension processing to enhance efficiency and reduce administrative costs.
  • Enables pensioners to receive payments from any bank branch across India.
  • Integrates with Aadhaar-based Payment System (ABPS) for seamless, biometric-enabled transactions.
  • Automatically credits pensions, removing the need for physical verification by pensioners.
  • Especially benefits pensioners who relocate frequently.

Employees’ Pension Scheme (EPS):

  • Launched in 1995 for social security of organised sector workers.
  • Provides monthly pension for retired EPFO members with at least 10 years of service.
  • Pensionable salary capped at ₹15,000 per month.
  • Employers contribute33% of employee’s salary towards EPS; 3.67% goes to EPF.
  • Disability and death benefits are provided regardless of service duration.

Associated Article:

https://universalinstitutions.com/india-approves-unified-pension-scheme-balancing-ops-and-nps/