New Delhi, Sep 4 : The Centre on Wednesday approved the Centralised Pension Payments System (CPPS) that will benefit more than 78 lakh people under the Employee Pension Scheme (EPS), which is part of the Employees' Provident Fund Organisation (EPFO).

Dr Mansukh Mandaviya, Union Minister of Labour and Employment, said that EPS pensioners can get pension from any bank, any branch, anywhere in India from January 1, 2025.

According to the ministry, there will also be no need for pensioners to visit the branch for any verification at the time of commencement of pension and the pension shall be immediately credited upon release.

In addition, EPFO expects a significant cost reduction in pension disbursement after moving to the new system.

'The approval of CPPS marks a significant milestone in modernisation of the EPFO. By enabling pensioners to receive their pensions from any bank, any branch, anywhere in the country, this initiative addresses the long-standing challenges faced by pensioners and ensures a seamless and efficient disbursement mechanism,' said the minister.

In the next phase, the government will transition to the Aadhaar-based Payment System (ABPS).

The CPPS marks a major shift by establishing national-level centralised system, enabling pension disbursement through any bank, any branch across India.

By harnessing advanced IT and banking technologies, the CPPS will offer a more efficient, seamless, and user-friendly experience for pensioners.

The centralised system would also ensure disbursement of pension throughout India without any need for transfer of Pension Payment Orders (PPO) from one office to another, even when the pensioner moves from one location to another or changes his bank or branch.

This would bring a great relief to pensioners who move to their hometown after retirement.

Last month, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the Unified Pension Scheme (UPS) for government employees, which will provide an assured minimum pension and a family pension. Around 23 lakh Central government employees will benefit from the scheme.

/IANS