EPFO launches centralised pension system in all regional offices; 68 lakh pensioners to benefit

The Employees' Provident Fund Organisation (EPFO), the retirement fund body in India, has completed the launch of the Centralised Pension Payments System (CPPS) in all its regional offices across the country, the labour ministry said on Friday.

The CPPS, under which beneficiaries can withdraw their pension from any bank without the need to visit the bank for verification once the pension starts and the amount will be automatically credited to their accounts, is anticipated to benefit over 68 lakh pensioners.

The system is a significant shift from the current decentralised pension distribution system which requires each zonal/regional office of EPFO to maintain separate agreements with only 3-4 banks, the ministry said in a statement.

The CPPS system will ensure streamlined disbursement of pensions across the country without the transfer of pension payment orders (PPO) from one office to another, even when the pensioner moves from one location to another or changes their bank or branch, the release said. This can substantially help pensioners who return to their hometowns post-retirement.

CPPS was successfully tested in October last year in Karnal, Jammu and Srinagar offices of the EPFO with the pension disbursement of about ₹11 crore to more than 49,000 EPS pensioners, a ministry statement said. The second round of testing was completed in November in 24 regional offices where about ₹213 crore pension was disbursed to more than 9.3 lakh pensioners, it stated.

As per the statement, the EPFO completed a full-scale rollout of the new CPPS in December, marking a landmark move towards enhancing the pension disbursement system. Nearly ₹1,570 crore pension was disbursed to more than 68 lakh pensioners pertaining to all 122 pension-disbursing regional offices of the EPFO for December 2024.

"The full-scale implementation of the CPPS across all regional offices of EPFO is a historic milestone. This transformative initiative empowers pensioners to access their pension seamlessly from any bank, any branch, anywhere in the country,” a PTI report quoted Union Minister Mansukh Mandaviya as saying.

Mandaviya said that the system eliminates the need for physical verification and simplifies the disbursement process.

"The CPPS is a testament to our commitment to modernise EPFO services and ensuring convenience, transparency, and efficiency for our pensioners.

"With this rollout, we are setting a new benchmark in pension service delivery, aligning with the vision of a tech-enabled and member-centric EPFO," he said.

EPFO is committed to improving its services for EPS pensioners and the new CPPS system is a major step for the same, he added.