The Employees’ Pension Fund Organisation (EPFO) has initiated a large-scale, accelerated campaign to disburse long-awaited pension arrears under the Employees’ Pension Scheme (EPS-95).
This decisive action comes in response to the Supreme Court’s November 2022 order, which granted eligible employees the right to opt for a significantly higher pension. After months of application collection and recalculation, the EPFO began releasing the first phase of arrears in July 2025.
The Digital Engine: Centralised Pension Payment System (CPPS)
The key driver behind this rapid turnaround is the EPFO’s recently deployed Centralised Pension Payment System (CPPS).
As reported by Zee News, the CPPS acts as a digital backbone, automating complex monthly pension calculations and making the entire arrears settlement process far more efficient. The integration of improved digital verification alongside this automated workflow is expected to provide substantial, long-term streamlining for all future pension disbursements.
Disbursement Figures Highlight Rapid Acceleration
The CPPS has immediately impacted the volume of payments, demonstrating a clear upward trend in the clearance of pending cases and arrears:
| Period | Total Payout (Arrears & Regular Pension) | Rate of Increase (M-o-M) |
|---|---|---|
| July 2025 | ₹2,819 crore | – |
| August 2025 | ₹3,050 crore | +8.2% |
| September 2025 | ₹4,010 crore | +31.5% |
The significant jump to over ₹4,010 crore in September 2025 underscores the success of the new centralised system in tackling the backlog and delivering financial relief to pensioners faster than ever before.
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