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Retirement comes with a much needed break from work, but it often comes with financial stress. From stressing about the monthly expenditure to becoming picky when buying essentials, retirement life comes with its own financial struggles. However, receiving a monthly pension that reduce the financial stress to some extent.
Employee Pension Scheme (EPS), a part of Employee Provident Fund (EPF) is one such pension scheme aimed to provide retired individuals with financial support, as well as financial security so that they can live their golden years without financial stress.
That said, when it comes to EPS there’s a term that often confuses pensioners the most. A most common question that arises is, “What is PPO?”. If you have come across this term numerous times but didn’t quite understand the concept, read on to more about the Pension Payment Order or PPO.
What is PPO Number?
The answer to “What is PPO” is simple. PPO, also known as Pension Payment Order, is a unique 12-digit number designated to every pensioner under the Employee Provident Fund (EPF). This unique 12-digit number acts as a reference number for transactions and communications associated with the Employee Pension Scheme or EPS.
The bifurcation of the 12 digit number is like this –
- The first 5 digits of the PPO number represents the code number of the PPO issuing authority.
- The next 2 digits represent the issue year
- The next 4 digits indicate the PPO's sequential number, and
- The last digit acts as a digital check digit.
The PPO number is of utmost importance. Here’s why:
- It enables pensioners to keep a track of their pension, as well as receive it.
- Pension Payment Order Number can come in handy when filing grievances with EPFO (Employee Provident Fund Organization).
- Knowing your PPO number is also mandatory when you are submitting the annual life certificate. Failure to submit a life certificate can lead to pension being stopped.
- A PPO number is also mandatory for receiving pension in a new bank account due to closure of the earlier bank account.
How to Check PPO Number?
Now that we know what is PPO & PPO number, it is important to know how you can find your PPO number.
The importance of PPO number has been well established above. If you are a pensioner who is enrolled in Employee Provident Scheme but doesn’t know their PPO number, you can easily find yours.
The Pension Payment Order Number is provided to subscribers of the Employee Provident Fund (EPF) after their retirement by the Employee Provident Fund Organization (EPFO). In case you didn’t get yours or forgot it, you can retrieve your PPO number through the EPFO portal.
Now that we know what is PPO & PPO number, it is important to know how you can find your PPO number.
The importance of PPO number has been well established above. If you are a pensioner who is enrolled in Employee Provident Scheme but doesn’t know their PPO number, you can easily find yours.
The Pension Payment Order Number is provided to subscribers of the Employee Provident Fund (EPF) after their retirement by the Employee Provident Fund Organization (EPFO). In case you didn’t get yours or forgot it, you can retrieve your PPO number through the EPFO portal.
Step 1: Head to the official website of EPFO
Step 2: Look for the link to the Pensioners' Portal. It will be available under online services on the home page.
Step 3: Click the 'Know your PPO number' button.
Step 4: Mention your bank account number or Employee Provident Fund (EPF) account number
Your Pension Payment Order (PPO) number will be displayed after the successful submission of these details.
How Does EPS Work?
By now you know what a Pension Payment Order number is, its importance and how you can find your PPO number if you have lost or misplaced it. However to better understand how you pension from EPF is calculated, you should have better understanding of the EPS or Employee Pension Scheme.
Employee Pension Scheme (EPS) was launched in 1995 with the objective of providing post-retirement financial security to salaried individuals who subscribed and contributed to EPF during their working years. The scheme ensures that the employees get a regular monthly pension when they reach their retirement age. Both new EPF members and existing members can avail the monthly pension benefits of EPS.
How much is Contributed Toward EPS (Employee Pension Scheme)
Employee Pension Scheme is a contribution-based scheme and it includes a portion of the EPF contribution made by both the employee and the employer.
The employee contributes a set percentage up to 12% of their basic salary and the dearness allowance every month in the EPF account. While the employer contributes equally, i.e. up to 12% of basic salary and dearness allowance (DA) of the employee into the account. Out of this total contribution equal to 24% of basic salary and DA, 8.67% is contributed towards EPS and the remainder is contributed to the EPF scheme.
FAQs
Q1. What is Pension Payment Order?
PPO is a unique 12-digit number provided to every pensioner who is covered by EPS (Employee Pension Scheme) under the Employee Provident Fund (EPF). A Pension Payment Order number is essential if you want to track the status of your pension.
Q2. How to check PPO number?
PPO number can be found using your bank account number or EPF account number. Simply visit the official website of EPFO, click the “Know your PPO number” and enter your bank account details or PF number to find your unique 12 digit PPO number.
Q3. What do the first five digits signify in a PPO number?
The first five digits in a PPO number represent the issuing authority’s unique code.
Q4. Is PPO mandatory if I need to transfer my PF account from one bank branch to another?
Yes, a PPO number is mandatory if you want to receive your EPS pension after transferring your account from one bank to another.
Q5. Are EPS and EPF the same?
No, EPS and EPF are not the same, however, they are often confused with one another. Employee Provident Fund (EPF) is mandatory for salaried individuals working in an organization employing 20 or more people. EPS (Employee Pension Scheme) is a part of the EPF and is designed to provide pension to EPF subscribers after retirement. The contribution made by the employee and the employees go toward the EPF scheme. Following further bifurcation, a portion of the total EPF contribution goes into the EPS scheme.
Q6. How do I get a new 12-digit PPO number instead of the old one issued to pensioners who retired before 1st January 1990?
The 12-digit PPO number is unique for every pensioner. It acts as a reference number for any communication made to Central Pension Accounting Officer (CPAO). Pensioners have the facility to monitor the status of their pension and file for grievances through the PPO number as the CPAO database can recognize the 12 Digit PPO numbers. CPAO was established on 1st January 1990 and, therefore, does not have a record of pensions before 1990.
If you are a pensioner who retired before 1990, you can be added to the CPAO database's list for retirees prior to 1990. The details of such pensioners can be submitted by the PAO of the pensioner's parent office or the related CPPC, accompanied by authenticated photocopies of old pension papers, in order to obtain a 12-digit PPO number.
Sources:
https://economictimes.indiatimes.com/wealth/save/how-to-find-ppo-number-for-pension-in-epf/articleshow/89496063.cms
https://economictimes.indiatimes.com/wealth/save/how-to-find-ppo-number-for-pension-in-epf/articleshow/89496063.cms
https://www.livemint.com/money/personal-finance/how-pensioners-can-get-their-ppo-number-using-bank-account-or-pf-number-11637032221954.html
https://economictimes.indiatimes.com/wealth/invest/who-can-join-employee-pension-scheme-and-who-cant/articleshow/76334990.cms
ARN No: May23/Bg/12G