EPFO Rolls Out Centralized Pension System, Easing Access for 68 Lakh

The Employees’ Provident Fund Organisation (EPFO) has successfully implemented the Centralized Pension Payments System (CPPS) across all its regional offices in India, marking a significant leap in pension disbursement services. This transformative initiative, benefiting over 68 lakh pensioners, was officially announced by the Ministry of Labour on Friday.

A Paradigm Shift in Pension Disbursement

The CPPS replaces the decentralised pension disbursement model, where each zonal or regional EPFO office operated agreements with a limited number of banks. Under the new system, pensioners can access their pensions from any bank branch across the country, eliminating the need for physical verification visits to banks. Once the pension amount is released, it will be instantly credited to beneficiaries' accounts.

From January 2025, CPPS will also facilitate seamless pension disbursements nationwide without requiring pension payment orders (PPOs) to be transferred when pensioners relocate or change their bank or branch. This development aims to provide substantial relief to retirees who move to their hometowns post-retirement.

Milestones Achieved During Implementation

The CPPS journey began with pilot projects in October 2023 at the Karnal, Jammu, and Srinagar regional offices, benefitting over 49,000 pensioners with a total disbursement of Rs 11 crore. This was followed by a second pilot in November, involving 24 regional offices, where Rs 213 crore was disbursed to more than 9.3 lakh pensioners.

In December 2024, the EPFO achieved full-scale rollout under the Employees’ Pension Scheme (EPS) 1995, disbursing approximately Rs 1,570 crore to over 68 lakh pensioners through 122 regional offices.

Union Minister Hails the Initiative

Union Minister Mansukh Mandaviya lauded the CPPS rollout, calling it a “historic milestone” in pension service delivery. “The full-scale implementation of CPPS empowers pensioners to access their pension seamlessly from any bank, anywhere in the country,” he stated.

He highlighted how the CPPS eliminates the need for physical verifications and simplifies the entire process, aligning with the vision of a tech-enabled and member-centric EPFO. “With this rollout, we are setting a new benchmark in pension service delivery, ensuring convenience, transparency, and efficiency for pensioners,” he added.

A Step Towards Modernisation

The CPPS is a testament to EPFO’s commitment to modernising its services. It promises to enhance the convenience and reliability of pension disbursements, bringing immense relief to EPS pensioners.

With this major reform, EPFO continues to take significant strides towards improving its services, fulfilling its mission of better serving India's pensioners.