CENTRALISED PENSION PAYMENTS SYSTEM (CPPS)

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Context:

The Union Minister of Labor and Employment has approved the implementation of a Centralised Pension Payment System (CPPS) for the Employees’ Pension Scheme 1995.

About Centralised Pension Payment System (CPPS)

• It is a new system designed to centralise the pension process.
• The objective is to enhance the efficiency of the overall pension process.
• It will allow pensioners to receive their pension payments from any bank branch in India.
• It will integrate with the Aadhaar-based Payment System (ABPS) in the next round of implementation.
  • • ABPS is a banking model that enhances the efficiency of financial transactions by utilising the Aadhaar biometric identification system.
• It will reduce the cost by centralising the system, and also reduce the burden on the administration system. 
• Now, Pensioners are not required to visit their bank branch for physical verification when their pension starts. 
  • • Under the CPPS, pensions will be automatically credited whenever released by the government.

• Pensioners who live in different places or move frequently will benefit from this universal access to pensions.

ADDITIONAL DETAILS

Employees’ Pension Scheme (EPS)

• It was launched in 1995 to provide Social Security benefits for workers in the Organized Sector. 
• It aims to provide a monthly pension to employees after their retirement to ensure their financial stability.
• It is managed by the Employees’ Provident Fund Organisation (EPFO).
• The maximum pensionable salary is limited to Rs 15,000 every month. 
• Eligibility:

• The retired person must be a member of EPFO.
• He must have completed a minimum of 10 years of service.
• Have completed at least 10 years of service.
• He must have reached the age of 58 years (can also withdraw from the age of 50 years)

• Both the employer and employee contribute to the Employees' Pension Scheme (EPS).

• • • Employee’s entire share going into EPF. 
    • Employers contribute 12% of the employee’s pay towards EPF; 8.33% of this amount is allocated to EPS and the remaining 3.67% towards the Employees' Provident Funds Scheme 1952.
• If a worker becomes permanently disabled, they are eligible for a pension regardless of their service duration. 
• In case of death, the family is eligible for the pension. 

Must Read Articles: 

Integrated Pensioners’ Portal

Aadhaar-Based Payment System

Paisabazaar

Unified Pension Scheme (UPS)

Source: 

PIB

National Payments Corporation of India