Pension Payment Order (PPO) - The Key to a Happy Retirement

All of us look forward to the day we can retire peacefully and enjoy the fruits of our labour. But a happy retirement requires a good deal of planning. Knowing your rights as a working citizen of India is also necessary to get all the benefits that come with retirement. The key to a happy retirement is having a source of regular income even when you’re not working. This passive income can come from numerous sources, the most common of which is ‘pension’.  

Salaried employees in India have to put a small part of their earning into the Employee Provident Fund (EPF). And a small part of the EPF is then credited to an Employee Pension Scheme (EPS). Your EPS funds grow over time until the day you retire. This fund can then be accessed post-retirement via your Pension Payment Order (PPO). The pension payment order is an official document given to you at the time of your retirement. This document contains numerous important details regarding your EPS account, including your pension payment amount, nominees, and your PPO number. 

How EPS Contributions Work? 

Before learning about PPO, it is necessary to understand how contributions are made to your EPS account. Both you and your employer make equal contributions to your provident fund account. Your can contribute up to 12% of your salary towards your EPF, and your employer have to contribute an equal amount whenever a deposit is made. Once contributions are made to your EPF, about 8.67% will be further deducted and added to your pension account (EPS). The funds in your EPS account will then be paid out as regular pension post your retirement.   

Details Tracked in Your PPO Document 

All details regarding your pension payment will be listed down on your PPO document. Important details include: 

• Your basic information including your name, age, birth date, and address.  

• Your last drawn salary and the amount credited to your EPS account.  

• Retirement date as well as the monthly pension amount payable. 

• Your PPO Number. 

• Details of nominees. 

• Division of Pension (if applicable in case of spouse maintenance etc). 

Ensure that all the details mentioned in your PPO document are accurate and up to date to ensure smooth pension payments post-retirement. 

What is a PPO Number? 

Your PPO or Pension Payment Order Number is the most important detail to remember when it comes to your EPS account. This number is used for all transactions connected to your EPS account. Moreover, you will also need your PPO number to communicate with the EPS support in case of any payment errors regarding your pension. 

Your PPO number is a unique 12-digit code that is assigned to you at the inception of your EPS account. The first 5 digits of your code are alphabetical and represent issuing authority’s code. The 6th and 7th digits represent the year in which your PPO was issued. The next 4 digits are your sequential, unique identification number for your PPO account, and the last digit is simply a check digit (used for error detection when your PPO number is generated).  

Your PPO number is required for: 

• Logging into your EPS account.  

• Filing grievances with the Employee Provident Fund Organization (EPFO).  

• Tracking the status of your pension payment and checking the amount still saved in your EPS account.  

• Your PPO number is mandatory if you want to transfer your pension account to a new bank.  

• PPO number is also needed while you are submitting your annual life certificate – required to keep your pension running. 

• If you are a government employee, you will need to submit your annual life certificate each year to receive your pension benefits. Your PPO number will be required during the submission of your certificate.  

How to Find Out Your PPO Number? 

The first step to accessing your pension account is to find out your PPO number. Retirees should receive their PPO number from their organisation. But if you don’t remember your number or haven’t received it for some reason, you can simply find your PPO number via the EPFO website. 

Follow the steps below to discover your PPO number and access your EPS account: 

• First open the EPFO website and open the ‘Services’ drop-box on the upmost tab. Then, click on the ‘For Employees’ link to open the next page. 

• On the For Employees page, scroll down until you find the link to the ‘Pensioner’s Portal’. 

• Upon clicking the link, you will be taken to the pension enquiry page.  

• Here, you must click on the ‘Know Your PPO Number’ link to proceed.  

• You can discover your PPO number by either entering your bank account number (linked to your EPF account) or your PF membership ID.  

Download Your Pension Payment Order Online 

Didn’t get your pension payment order in-hand? No issues! You can now download your PPO online through the official DigiLocker website. 

• Open the Digi Locker website and log-in via your Aadhaar number, registered mobile number, or username.  

• A One Time Password (OTP) will be shared on your registered mobile number.  

• Enter the OTP and Security PIN to log-in to your account.  

• Click on the ‘Issued Documents’ link. You will then be redirected to a new page.  

• On this page, click on 'Get more issued documents'.  

• Find the ‘Employee Provident Fund Organisation’ link.  

• Enter your UAN on the next page to download your PPO document.  

Conclusion 

Knowing your PPO number is crucial for accessing and tracking your pension payments. But know that EPS is not the only source of pension that you can rely upon during your retirement years. If you want to further enhance your retirement funds, think about getting an annuity plan like Edelweiss Life- Active Pension Plus. Annuity plans ensure that you have a steady source of income post-retirement. Plan for your golden years today so that you can enjoy your freedom stress-free!