Mon Nov 18 19:55:00 UTC 2024: ## New Pension System Launched, but Higher Pension Delays Persist

**NEW DELHI, November 19, 2024** – A new Centralised Pension Payments System (CPPS) for Employees’ Pension Scheme (EPS) 1995 pensioners went live today, allowing recipients to access their payments from any bank branch nationwide. This simplifies the process for new pensioners, eliminating the need for specific bank accounts and in-person verification.

However, the launch overshadows ongoing delays in processing applications for higher pensions, a significant concern for lakhs of Employees’ Provident Fund Organisation (EPFO) members and pensioners. While the Supreme Court approved higher pension payments based on wages exceeding the PF ceiling two years ago, progress has been slow. As of August 7th, 1.3 million applications remained pending.

The EPFO’s response has been limited to issuing payment orders to a mere 8,400 applicants and demand notices to 89,000 others, requiring them to contribute the difference between their actual salary and the wage ceiling. Further complicating matters are difficulties in obtaining decades-old pay slips and the imposition of stringent conditions for pre-September 2014 retirees.

The government and EPFO cite concerns about the actuarial deficit of the pension fund, despite the EPFO’s 2022-23 annual report showing no cash flow problems and a steady increase in contributions over the past five years. While the EPFO suggests an estimated ₹9,500 crore deficit based on sample data, experts propose solutions such as a one-time government injection or increased employer/employee contributions.

Calls to increase the minimum pension from ₹1,000 and raise the wage ceiling from ₹15,000 remain unanswered. Employee representatives and trade unions are pushing for a ₹9,000 minimum pension and a ₹40,000 wage ceiling. The government has yet to publicly address these demands or outline a clear timeline for resolving the backlog of higher pension applications.

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