Private sector employees will soon benefit from a significant change in retirement planning. Starting January 1, 2025, pensioners under the Employees' Provident Fund Organisation (EPFO) will be able to access their pensions from any bank branch, thanks to a recent approval by the central government.

Previously, pensioners faced limitations in accessing their pension funds. However, under the new system, known as the Centralized Pension Payment System (CPPS), they will be able to withdraw their pensions from any branch of any bank across India. This move is set to streamline the process and make pension management more convenient.

The new system is expected to benefit over 7.8 million EPS pensioners. Labor Minister Dr. Mansukh Mandaviya highlighted that the approval of CPPS marks a milestone in the modernization of EPFO.

With this new system, pensioners will no longer need to visit a branch for verification when their pension begins. Funds will be directly deposited into their accounts, and EPFO anticipates reduced costs in pension distribution. The CPPS is part of EPFO's broader modernization efforts, integrating with their Centralized IT Enabled System (CITES 2.01), and setting the stage for future enhancements like the Aadhaar-based Payment System (ABPS).

Additionally, pensioners will not need to transfer their Pension Payment Order (PPO) number when relocating or switching banks, simplifying the process for retirees.

This upgrade promises to make pension access more efficient and user-friendly for all EPFO beneficiaries.