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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

PRACTICE QUESTION Q. Consider the following statements in the context of the Employees' Pension Scheme (EPS): 1. It was launched in 1995 to provide pension benefits to employees in the unorganised sector.  2. Employees must have completed a minimum of 10 years of service to be eligible for monthly pension benefits under EPS. 3. The maximum pensionable salary under EPS is Rs  15,000 per month.  How many of the above statements are correct? A) Only one B) Only two C) All three D) None Answer: B Explanation: Statement 1 is incorrect: The Employees' Pension Scheme (EPS) was launched in 1995, it is specifically designed for employees in the organised sector.  Statement 2 is correct: To be eligible for monthly pension benefits under EPS, employees must have completed a minimum of 10 years of service. Statement 3 is correct: The maximum pensionable salary under EPS is Rs 15,000 per month, regardless of the last salary of the employee.