New Delhi: EPS pensioners will now be able to receive their pension in any bank account, according to a proposal cleared by the Centre. The proposal was made by the Central Pension Payment System (CPPS) for the Employees Pension Scheme of 1995.
Union labour minister Mansukh Mandaviya stated that this decision was taken as part of Prime Minister Narendr aModi’s emphasis on ‘shramev jayate’.
78 लाख EPS पेंशनर्स के लाभार्थियों के हित में एक महत्वपूर्ण निर्णय लिया गया है। जल्द ही EPS पेंशनर्स सेंट्रल पेंशन पेमेंट्स स्कीम (CPPS) के तहत देशभर के विभिन्न बैंकों की किसी भी शाखा से अपनी पेंशन राशि प्राप्त कर सकेंगे।
प्रधानमंत्री श्री @narendramodi जी के निरंतर प्रयासों से…
— Dr Mansukh Mandaviya (@mansukhmandviya) September 4, 2024
When can you receive EPS in any bank account?
In an official notification, the EPFO said it will allow the credit of EPS pension in any bank account from January 1, 2025. This will take place after EPFO has modernised its IT systems towards an Aadhaar-based payments system. Nearly 78 lakh pensioners are expected to benefit from the changes to CPPS. Going forward, a pension payment order will not be required to credit the pension in a bank account even if there is a change in the bank location. This will be immensely beneficial to pensioners who have changed residence.
Once the IT updates are made, EPS pensioners will not be required to conduct branch visits for the purpose of verification. Instead, there will be an instant pension credit, according to the official statement. These changes are expected to benefit the pensioner and result in cost savings for the EPFO. Going forward, EPFO zonal or regional offices will not be required to ink separate agreements with a limited number of banks.
What is EPS pensiom?
EPS or Employees Pension Scheme is offered by the EPFO to subscribers on retirement. EPS is calculated by multiplying the subscriber’s average salary with their pensionable service. This amount is then divided by 70. EPS partial pension withdrawal is allowed after age 50 with full benefits kicking in from age 58.
If a person with below 10 years of service remains unemployed for over 2 months, they are eligible for EPS withdrawal. EPS is not a voluntary scheme but a benefit available to EPFO subscribers in a default manner. EPS contribution is deducted from the employer’s contribution.
EPFO has notified that subscribers who have retired will be eligible for Employees Pension Scheme pension payout from any bank soon. Know exact date and more details Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
