What Is a Pension Payment Order (PPO) and Why Is It Important?

If you possess an EPF (Employees’ Provident Fund) account, a fraction of your EPF deposits will be allocated to the Employee Pension Scheme (EPS) account. The EPS account is the segment of Employees’ Provident Fund (EPF) that administers a pension scheme designed to furnish retired EPF subscribers with financial assistance, along with financial security, allowing them to enjoy their golden years without financial worries. However, concerning EPS, there exists a term that often baffles numerous subscribers. Thus, a frequently asked question arises: “What is PPO? ”. If you have encountered the term Pension Payment Order or PPO for short a few times but did not fully grasp the concept, continue reading to learn more about its significance in retirement planning.

What is PPO Number?
The response to “What is PPO” is straightforward. PPO, which is also referred to as Pension Payment Order, is a distinct 12-digit number assigned to every pensioner under the Employee Provident Fund (EPF). This unique 12-digit number serves as a reference number for transactions and communications linked to the Employee Pension Scheme or EPS.
The breakdown of the 12-digit number is as follows –
The first 5 digits of the PPO number signify the code number of the PPO issuing authority.
The next 2 digits denote the issue year
The subsequent 4 digits reflect the PPO’s sequential number, and
The final digit serves as a digital check digit.
The PPO number holds great significance. Here are the reasons:
It allows pensioners to monitor their pension, as well as receive it.
Pension Payment Order Number can be useful when lodging complaints with EPFO (Employee Provident Fund Organization).
Being aware of your PPO number is also essential when you are submitting the annual life certificate. A failure to submit a life certificate may result in the cessation of your pension.
A PPO number is also required for receiving pension in a new bank account due to the closure of the previous bank account.

How to Check PPO Number?
Now that we understand what PPO and PPO number are, it is vital to know how you can locate your PPO number.
The significance of the PPO number has been clearly outlined above. If you are a retiree who is part of the Employee Provident Scheme but does not know your PPO number, you can easily locate it. The Pension Payment Order Number is given to Employee Provident Fund (EPF) subscribers upon their retirement by the Employee Provident Fund Organization (EPFO). If you did not receive yours or have forgotten it, you can obtain your PPO number via the EPFO portal.

Step 1: Go to the official EPFO website
Step 2: Search for the link to the Pensioners’ Portal. It will be found under online services on the homepage.
Step 3: Click on the ‘Know your PPO number’ button.
Step 4: Provide your bank account number or Employee Provident Fund (EPF) account number.
Your Pension Payment Order (PPO) number will be shown once you have successfully submitted these details.

How Does EPS Function?
By now, you understand what a Pension Payment Order number is, its significance, and how to find your PPO number if it has been lost or misplaced. However, for a clearer understanding of how your pension from EPF is determined, you should gain a better insight into the EPS or Employee Pension Scheme.
The Employee Pension Scheme (EPS) was introduced in 1995 with the aim of offering post-retirement financial stability to salaried individuals who subscribed and contributed to EPF during their employment years. The scheme guarantees that employees receive a regular monthly pension upon reaching their retirement age. Both new EPF members and current members can access the monthly pension benefits of EPS.

What is the Contribution to EPS (Employee Pension Scheme)?
The Employee Pension Scheme is a contribution-based initiative, and it comprises a portion of the EPF contribution made by both the employee and the employer. The employee contributes a fixed percentage of up to 12% of their basic salary and the dearness allowance to the EPF account each month. The employer makes an identical contribution of up to 12% of the employee’s basic salary and dearness allowance (DA) into the account. From this total contribution, amounting to 24% of the basic salary and DA, 8. 67% is allocated to EPS, while the remainder goes to the EPF scheme.

What is a Pension Payment Order (PPO)