EPFO big update: Pension body mulls central system to credit funds at a time

In what could be a big move, the Employees' Provident Fund Organisation (EPFO) is likely to accept a proposal to establish a central pension disbursal system during its next meeting scheduled to be held on July 29 and 30.

If the retirement fund body accepts the proposal, it will enable EPFO to credit pension to the bank accounts of over 73 lakh pensioners throughout the country in one go. 

"A proposal for setting up a central pension disbursal system will be placed in the EPFO's apex decision-making body Central Board of Trustees (CBT) in a meeting scheduled on July 29 and 30," a source told news agency PTI.

“Pensions would be disbursed through a central database of 138 regional offices in the country, enabling the benefit to be credited into 73 lakh beneficiaries' bank accounts simultaneously,” PTI reported quoting the source.

It is worthwhile to mention here that EPFO is responsible for managing and regulating provident funds in the country.  In case of untimely death of a member, the body offers provident fund benefits, pension benefits to the members while family pensions and insurance benefits are provided to the members' families.