Centralized pension payment for EPF pensioners

The Central Government has approved a proposal for a centralized pension payment system for beneficiaries of the Employees’ Pension Scheme, 1995, which is managed by the Employees’ Provident Fund Organisation. Under this new framework, pension payments can be processed through any bank and any branch throughout India.

This initiative aims to resolve the persistent issues faced by pensioners, providing a more streamlined and effective disbursement process. It will eliminate the necessity of transferring pension payment orders between EPF offices when pensioners relocate or change their banking arrangements. Additionally, the Government has stated that pensioners will not be required to visit their bank branch for verification at the start of their pension; funds will be credited immediately upon release. The EPFO is in the process of implementing this system, with an expected rollout in January 2025. In the subsequent phase, the Centralized Pension Payment System (CPPS) will facilitate the transition to an Aadhaar-based payment system (ABPS).