Changes were incorporated in order to make the pension scheme more effective and beneficial as of the year 2025. Therefore, in April 2025, various new pension schemes were launched by the Employees’ Provident Fund Organization (EPFO) toward the achievement of financial stability of the millions of pensioners. The reforms are aimed toward granting greater benefits to pensioners to secure their lifestyles.
Increase In Minimum Pension
EPFO has increased the minimum pension from ₹ 1,000 to ₹ 7,000, which is going to benefit especially those pensioners who fall within the low-income group. Besides this, for the very first time, dearness allowance (DA) will be given to EPFO pensioners for maintaining their purchasing capacity with respect to inflation.
Launch Of Unified Pension Scheme
EPFO has adopted the Unified Pension Scheme (UPS), which will be effective from April 1, 2025. The scheme will be applicable to three classes of employees: i.e., those already covered under NPS, those who will join after April 1, 2025, and employees who have retired before March 31, 2025. Eligible employees will have to apply under the scheme within three months from the implementation of the scheme.
Digital Pension Process
In order to promote digital services for all pensioners, Aadhar-based biometric verification or face authentication app can now be used by the pensioners for the submission of their annual life certificate. This makes it easy and fast for these pensioners, as they will not have to travel to their bank or pension office.
Improved Family Pension
Under the new scheme, family pensions have been improved. For a pensioner who dies, his family will get a higher pension amount than before. In addition, the family pension payment process has also been expedited, ensuring that the dependents get timely financial aid.
Pension Collection System Across The Country
By implementing the Centralized Pension Payment System (CPPS), EPFO has ensured that the pensioners will now be able to receive their pension from any bank branch. Priorly, pensioners underwent cumbersome procedures to change or transfer banks; now the procedures have been simplified and made user-friendly.
Conclusion
The reforms implemented in April 2025 are an important milestone for pensioners. The rise in minimum pension, growth in digital services, and reforms in family pension will help millions. The government envisions a pension system that will be fully effective and inclusive to help provide financial security to people post-retirement.
Also Read: New Pension Rules 2025: Key Changes Every Government Employee Must Know, See Details