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.
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/