No matter what kind of job you’re in, if you don’t have sufficient financial savings to maintain a good lifestyle, you might not be able to live comfortably. Remember that trying to purchase things and groceries may lead to financial struggles after retirement.
Thus, to combat this issue, the Government of India introduced the Employee Pension Scheme (EPS) as a part of the Employee Provident Fund (EPF) under the scheme in 1995. The EPF scheme aims to provide employees with monthly assistance and security which ensure a stress-free retirement life.
If you hold an EPF account, it’s essential to familiarize yourself with the concept of a Pension Payment Order (PPO). The Pension Payment Order, abbreviated as PPO, plays a crucial role in retirement planning. In this post, we’ll explore the significance of PPO and its relevance to retirement plans.
Understanding PPO: What is It?
To put it simply, the Pension Payment Order (PPO) is a unique 12-digit code provided to every pensioner under the Employee Provident Fund (EPF). The alphanumeric identifier is essential for seamless transactions and communications related to the Employee Pension Scheme (EPS).
The 12-digit PPO number is classified into the following parts:
- First 5 digits: It represents the PPO issuing authority’s code number.
- 6th & 7th Digits: It indicates the year in which the PPO was issued.
- 8th, 9th, 10th, & 11th Digits: These are the sequential numbers of the PPO.
- 12th Digit: It refers to the digital check digit.
Why is a Pension Payment Order (PPO) important?
Here is a list of the aspects that show the importance of PPO comes in!
- Pension Tracking
One aspect is that the PPO number acts as a unique identifier that enables pensioners to efficiently track and receive their pension payments. Furthermore, pensioners can easily use standardized references and monitor the status of pension disbursements. Remember that this streamlined process can reduce the likelihood of errors and ensure timely payments.
- Grievance Filing
Another major significance of the PPO is that if pensioners encounter any issues or discrepancies in their payments, the PPO number is a mandatory requirement for filling grievances with the Employee Provident Fund Organization (EPF0). Remember that these unique identifiers ensure that complaints or concerns are addressed systematically and transparently.
- Life Certificate Submission
There is no denying that if you want to continue receiving payments, pensioners are typically required to submit an annual life certificate. Remember that this certificate serves as proof that the pensioner is alive and eligible for ongoing pension benefits. Therefore, pensioners need to ensure the accurate submission of their PPO number during the life certificate verification process.
- Bank Account Changes
One of the most significant aspects of the PPO is that the PPO number acts as an important reference point to ensure a smooth transition. When you associate the PPO number with the new bank account, the EPFO can redirect pension payments accurately without disruption.
Steps to Check the Pension Payment Order (PPO)
Here is the list of the steps to check the PPO.
- In the first step, you will need to visit the EPFO website using your smartphone or your laptop.
- After that, on the top, you will see the services section and when you hover over the “Services” section, you will see “For Employees”. Click on it.
- When you scroll down a bit on the page, you will see the “Pensioners’ Portal” under the services.
- The moment you click on it, you can easily find “Knows your PPO No.” on the left-hand side. When you click on it, you will have two options, namely “Bank Acc. Search” and “Mem. ID Search”. Ensure you choose any of the options and proceed with the checking of the PPO number.
Steps to Download Pension Payment Orders Online
Listed below are the steps to download the Pension Payment Order Online.
- In the first step, you will need to visit the DigiLocker website. After that, you will need to log in. For that, click on “Sign in” and enter your Aadhar Number, mobile number, or username.
- In the second step, an OTP will be sent to the registered mobile number. After that, enter the OTP and the security PIN generated.
- Once you successfully log in, click on “Issued Documents” and then a webpage will appear. After that, you will need to click on the “Get More Issued Documents” button.
- Then, a new webpage will appear. Click on UAN & enter your UAN when prompted. After that, click “Get Document” and after fetching the data, the PPO will appear under “saved documents”.
Final Thoughts
So, there you have it! That’s a wrap to everything you need to know about PPO! Remember that it represents your financial security and well-being after retirement. It ensures that you all will receive all the financial benefits you have earned through your long years of hard work. Therefore, both employers and employees need to contribute to the Employees Pension Scheme (EPS).
As an employee, you will need to contribute 12% of your basic salary and Dearness Allowance (DA) each month to your Employee Provident Fund (EPF) account. Remember that your employer also contributes the same amount. In total, 24% of your salary is deposited into the EPF account, with 8.67% of this amount directed to the EPS scheme.
Frequently Asked Questions
Listed below are the frequently asked questions related to the Pension Payment Order.
Yes, the PPO number is required to receive your EPS scheme after transferring your PF account from one back to another.
No, EPS & EPF are not the same, although they are often confused. The Employee Provident Fund (EPF) is mandatory for salaried individuals working in organizations with 20 or more employees. The EPS scheme is a part of the EPF scheme and provides a pension to EPF subscribers after retirement.
If the pensioner’s portion of the PPO is lost, damaged, or worn out, the paying branch will forward the request for renewal to the CPAO through the branch link along with both disburser’s half of the PPO, according to the rules in force.
Yes, the PPO number is mandatory if your previous bank account is closed and you need to receive your pension in a new bank account.
The Pension Payment Order (PPO) is a unique 12-digit number issued to a pensioner under the Employee Provident Fund (EPF). It acts as a transaction ID or reference number for any transactions or communications related to the Employee Pension Scheme (EPS).