The Employees’ Provident Fund Organisation (EPFO) initiated some critical updates aiming to enhance the functioning, accessibility, and benefits of the Employees’ Pension Scheme (EPS) for the members since 2025.
1, Centralized Pension Payment System (CPPS)
Implementing the CPPS from January 1, 2025, permits the pensioners to draw their pensions from any bank branch in India without being required to transfer their Pension Payment Order (PPO) when shifting bases or changing banks. This would be a boon for retirees, thus giving over 78 lakh EPS pensioners the flexibility and convenience of drawing their dues. 212turn0search12
2, Joint Declaration Simplified
In January 2025, the EPFO issued a revised circular to clarify the problematic Joint Declaration for correcting discrepancies in the personal records of the EPFO regarding names, dates of birth, and/or gender, taking precedence over some recommendations of the previous Standard Operating Procedure (SOP Version 3.0) distributed on July 31, 2024, with the ambition of further streamlining corrections, thus reducing delay.
3, Higher Pension Eligibility Clarifications
Clarifications have been issued by EPFO with regard to the processing of pensions on higher wages. Employers are liable to upload employee wage details by January 31, 2025, while clarification, if requested, is to be provided by January 15, 2025, for processing applications for higher pension. Employees will be made aware of the rejection of their application, after which they would be given one month from the date of communication of rejection to either correct their details or submit any other documents pertaining to their higher pension claim.
4, Minimum Pension Increase Proposal
EPFO has proposed a minimum pension under the EPS to increase from the current ₹1,000 to ₹3,000 per month. The basic concern behind this proposition is to give greater financial security to retirees, particularly to those in lower-income groups, since the current pension scheme is unable to provide for even their basic living costs against galloping inflation. 212turn0search0
5, Betterment of Insurance Benefits
A minimum life insurance benefit of ₹50,000, under the revised EDLI scheme, will now be paid if an EPF member dies while in service, having had less than a year of continuous service. This will enhance the insurance cover for over 5,000 in-service death cases every year, thus ensuring greater monetary protection for bereaved families of the members.
These changes testify to the EPFO’s urge to improve the pension framework and service delivery for its members while also enhancing their financial welfare. Members must now stay updated with such changes and take maximum advantage of the newly enhanced services and welfare.
