The labour ministry will change to a centralised pension-payment system from 2025, permitting retirees to obtain month-to-month payouts from any financial institution or its branches in any location all through the nation, for which a large-scale take a look at run was not too long ago carried out.
The brand new platform for subscribers of the Staff’ Provident Fund Organisation (EPFO), the state-run retirement fund supervisor, is geared toward chopping down paperwork and enabling faster processing, labour minister Mansukh Mandaviya stated on Monday.
The tech-based system will eradicate the necessity to transfer cost orders bodily from one financial institution or location to a different in case beneficiaries change their banks or place of residence, the minister stated.
The transfer will cowl almost 7.8 million subscribers of the Staff’ Pension Scheme 1995, a “outlined contribution, outlined profit” financial-security plan relevant for all staff with a wage ceiling of ₹15,000 a month.
The centralised system will change the present decentralised pension disbursement system of the EPFO. Presently, every regional workplace of the EPFO maintains separate agreements with solely a handful of banks, tying pensioners to these banks and their house branches.
As soon as the centralised platform is rolled out, recent retirees won’t be required to go to an assigned financial institution’s department for verification to arrange their pension accounts, enabling faster cost transfers.
Below the trial run, carried out on October 29-30, the EPFO disbursed pensions value ₹11 crore to over 49,000 accounts on an enhanced information-technology-based monetary platform.
“Below the present system, it may typically take three-four months for subscribers to get their first pension as soon as they retire, if there may be some discrepancy in paperwork or due to small issues. This requires plenty of working round. An upgraded system was overdue,” stated a former EPFO board member, requesting anonymity.
