The Employees' Provident Fund Organisation (EPFO) has implemented the Centralized Pension Payments System (CPPS) to improve pension accessibility and simplify the process for millions of pensioners in India. This system eliminates physical verifications and allows pensioners to access their pensions from any bank or branch across India.
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The Employees' Provident Fund Organisation has successfully implemented the Centralized Pension Payments System to improve pension accessibility and simplify the process for millions of pensioners.
It is a system introduced by the Employees' Provident Fund Organisation (EPFO) to allow pensioners to access their pensions from any bank or branch across India.
It aims to simplify the pension disbursement process by eliminating the need for physical verifications and ensuring smooth, nationwide pension disbursements for over 7.85 million pensioners.
It allows pensioners to receive their pension from any bank or branch without having to visit the bank for verification.
Pensioners will no longer need to transfer their Pension Payment Orders (PPO) when relocating or changing banks. This provides greater convenience, mainly for pensioners who move to their hometowns after retirement.
It is a statutory body established under the Employees' Provident Funds and Miscellaneous Act 1952.
It works under the administrative control of the Union Ministry of Labour and Employment.
EPFO operates the following three schemes:
The EPFO schemes cover Indian workers and international workers from countries with whom EPFO has signed bilateral agreements.
The EPFO schemes are administered by the Central Board of Trustees; representatives from the Government (Central and State), employers, and employees. The Union Minister of Labour and Employment chairs the Central Board of Trustees.
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PRACTICE QUESTION Q.Consider the following statements: 1. The Employees' Provident Fund Organisation (EPFO) manages both provident funds and pension schemes. 2. It is mandatory for employees earning less than Rs. 15,000 to register for the Employees' Provident Fund (EPF). Which of the above statements is/are correct? A) 1 only B) 2 only C) Both 1 and 2 D) Neither 1 nor 2 Answer: C Explanation: Statement 1 is correct: The Employees' Provident Fund Organisation (EPFO) manages provident funds and pension schemes. The EPFO manages the Employee Provident Fund (EPF), a retirement savings scheme where both employees and employers contribute monthly. The EPFO is a social security agency under the Ministry of Labour and Employment, assisted by the Central Board of Trustees. Statement 2 is correct: Employees' Provident Fund (EPF) is mandatory for salaried employees earning up to Rs. 15,000 per month. Both employers and employees contribute a fixed percentage of the employee's basic salary to their EPF account. Employees earning more than Rs. 15,000 can also register for an EPF account, but require approval from the Assistant PF Commissioner. Benefits of EPF include tax savings, retirement savings, and a pension, providing regular income after retirement. |
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