Centralized Pension Payment System

About Centralized Pension Payments System (CPPS):

• It is implemented by the Employees’ Provident Fund Organisation (EPFO) which allows pensioners to access their pension from any bank or branch nationwide.
• The system aims to streamline the payment process, eliminate the need for physical verifications, and ensure seamless pension disbursement for over 7.85 million pensioners.
• It is a paradigm shift from the existing pension disbursement system that is decentralised, with each zonal/regional office of EPFO maintaining separate agreements with only 3-4 banks, the ministry explained in a statement.
• Under CPPS, a beneficiary will be able to withdraw pension from any bank and there will be no need for to visit the bank for verification at the time of commencement of pension, and the amount will be immediately credited upon release.
• It will also ensure disbursement of pension throughout India without any need for transfer of pension payment orders (PPO) from one office to another even when the pensioner moves from one location to another or changes his bank or branch.

Key Facts about Employees’ Provident Fund Organisation (EPFO):

• It is a statutory body under the Employees’ Provident Funds and Miscellaneous Act, 1952. 
• It is under the administrative control of the Union Ministry of Labor and Employment. 
• Structure of EPFO:
  • The Act and all its schemes are administered by a tripartite board called the Central Board of Trustees.
  • The board comprises representatives of the Government (both Central and State), employers, and employees. 
  • The board is chaired by the Union Minister of Labour and Employment, Government of India. 
• The Central Board of Trustees operates 3 schemes:
  • The Employees’ Provident Funds Scheme, 1952 (EPF)
  • The Employees’ Pension Scheme, 1995 (EPS)
  • The Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI)
• EPFO is also the nodal agency for implementing Bilateral Social Security Agreements with other countries on a reciprocal basis. 
• Coverage: The schemes offered by EPFO cover Indian workers and international workers (from countries with whom the EPFO has signed bilateral agreements).

Q1: What is the Employees’ Deposit Linked Insurance Scheme, 1976 (EDLI)?

The EDLI scheme was launched in 1976 to provide insurance benefits to members of EPFO. The main objective of EPFO behind this scheme was to ensure that the family of members get financial assistance in case of death of the member.

Source: ET

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