Centralised Pension Payment System (CPPS): The EPFO will implement a CPPS to enable pensioners to receive their pensions through any bank, any branch.
The CPPS will be fully operational from January 1, 2025.
The system will transition to Aadhaar-based payments, eliminating the need for physical verification.
Challenges and Solutions:
Pensioners face delays in transferring Pension Payment Orders (PPOs) and limited banking options.
The CPPS will streamline the process, reduce delays, and expand banking options.
While pensioners generally welcome the development, concerns remain about implementation challenges.
Pensioners and trade unions are urging the government to increase the minimum pension amount.
The government has cited financial constraints but has been increasing its allocation for the EPS-95.
Pensioners are disappointed with the government's response and believe they deserve a more substantial increase.
The Supreme Court approved the payment of pension on higher wages in November 2022.
The EPFO has been processing applications for pension on higher wages, but many are still pending.
The EPFO faces challenges in verifying documents and assessing the impact on the Pension Fund's sustainability.
Way Forward:
The government should increase its contributions to the EPS-95 and revise the PF contribution ceiling.
Employees should be given the option to invest in the EPF or NPS.
The exclusion of employees who joined after September 1, 2014, should be removed.
The EPFO should improve its efficiency in processing applications and reduce bureaucratic hurdles.
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