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The new year has brought a big relief for the pensioners associated with the Employees' Pension Scheme (EPS) of the Employees' Provident Fund Organization (EPFO). From today, he will be able to get his pension from any bank, branch, or place located in the country. This will be a big convenience for the people living in their hometown after retirement.

A few days ago, the proposal for the Centralized Pension Payment System (CPPS) for the Employees' Pension Scheme, 1995 was approved by Labor and Employment Minister Mansukh Mandaviya and the Chairman of the Central Board of Trustees of EPF, after which this facility will be available to the employees from the new year. About 78 lakh pensioners will benefit from the implementation of CPPS.

How will it be easy to get a pension?

According to an Assistant Commissioner of EPFO, under the current system, each EPFO zonal and regional office makes an arrangement at the individual level with only three to four banks. In such a situation, when the retired employee goes to his hometown, he faces difficulty in getting a pension due to the absence of a bank branch (with which EPFO has tied up). However, after the implementation of CPPS, it will be easy to get a pension.

Apart from this, now pensioners will not even need to go to any bank branch for verification after the pension starts. After the pension is released, it will be deposited immediately in the bank, which the employees have mentioned in their documents.

Not only this, if a pensioner transfers or changes the bank or branch, then there will be no problem because CPPS guarantees pension distribution across India without the need for the transfer of a Pension Payment Order (PPO) from one office to another. EPFO hopes that the implementation of the new system will save a huge cost incurred in pension payments.

Eligibility for EPS Pension

The employee should be a member of EPFO and have completed 10 years of service.

He must have reached the age of 58 years.

He can also withdraw his EPS at a lower rate after completing 50 years of age.

He can also extend his pension for two years (till the age of 60).

After this, he will get a pension at an additional rate of 4 percent every year.