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EPS pensioners will now be able to receive their pension in any bank account, according to a proposal cleared by the Centre. The proposal was made by the Central Pension Payment System (CPPS) for the Employees Pension Scheme of 1995.
Union labour minister Mansukh Mandaviya stated that this decision was taken as part of Prime Minister Narendra Modi’s emphasis on ‘shame jayate’.

When can you receive EPS in any bank account?

In an official notification, the EPFO said it will allow the credit of EPS pension in any bank account from January 1, 2025. This will take place after EPFO has modernised its IT systems towards an Aadhaar-based payments system. Nearly 78 lakh pensioners are expected to benefit from the changes to CPPS. Going forward, a pension payment order will not be required to credit the pension in a bank account even if there is a change in the bank location. This will be immensely beneficial to pensioners who have changed residence.
Once the IT updates are made, EPS pensioners will not be required to conduct branch visits for verification. Instead, there will be an instant pension credit, according to the official statement. These changes are expected to benefit the pensioner and result in cost savings for the EPFO. Going forward, EPFO zonal or regional offices will not be required to ink separate agreements with a limited number of banks.

What is an EPS pension?
EPS or Employees Pension Scheme is offered by the EPFO to subscribers on retirement. EPS is calculated by multiplying the subscriber’s average salary with their pensionable service. This amount is then divided by 70. EPS partial pension withdrawal is allowed after age 50 with full benefits kicking in from age 58.
If a person with below 10 years of service remains unemployed for over 2 months, they are eligible for EPS withdrawal. EPS is not a voluntary scheme but a benefit available to EPFO subscribers in a default manner. EPS contribution is deducted from the employer’s contribution.