Coal Pensioners Seek Coal Minister’s Intervention, Propose Joint Exercise for Pension Revision

The All India Association of Coal Pensioners (AIACE/AICPA) has sought the Coal Minister’s personal intervention to resolve the long-pending issue of pension enhancement under the Coal Mines Pension Scheme, 1998 (CMPS-1998), proposing a joint exercise involving the government, coal companies and pensioners’ representatives to arrive at a financially sustainable solution.

In a letter dated October 1, 2026, addressed to the Union Minister for Coal, the association called for a structured, transparent and time-bound Government–Pensioner Convergence Exercise to address concerns over inadequate pensions and the long-term financial sustainability of the pension fund.

The proposal seeks to bridge the gap between the government’s concerns over the fund’s actuarial position and pensioners’ demands for better retirement benefits amid rising living costs and declining purchasing power.

AIACE/AICPA Convenor P. K. Singh Rathor said the two concerns need not be contradictory and called for a collaborative approach instead of a prolonged standoff between the government and pensioners.

Independent actuarial assessment proposed

The association has proposed a joint exercise involving the Ministry of Coal, Coal Mines Provident Fund Organisation (CMPFO), Coal India Limited (CIL), Singareni Collieries Company Limited (SCCL), relevant representatives of the Ministry of Finance, independent financial experts and recognised pensioners’ organisations.

The first step, according to the proposal, should be to establish a common factual position on the pension fund’s corpus, contributions, investment income, pension expenditure, administrative costs, number of pensioners and contributors, and existing and projected liabilities.

An independent actuary would then assess different pension restructuring options and calculate their financial implications, including the additional annual expenditure, future liabilities, funding requirements and the impact of inflation, investment returns and increasing life expectancy.

The association believes that a common assessment of the facts would help the government and pensioners understand what level of pension enhancement is possible and how it could be funded without compromising the scheme’s long-term viability.

Minimum pension, Dearness Relief under consideration

The study paper accompanying the letter outlines several options for restructuring CMPS-1998. These include a comprehensive review of the pension structure, periodic revision of the minimum pension, an inflation-protection mechanism through Dearness Relief or another sustainable arrangement, and a possible grade- or service-linked pension structure based on the principle of “Same Grade, Same Pension”.

The association has also called for specific protection for existing pensioners and family pensioners, cautioning against a restructuring exercise that primarily benefits future beneficiaries while leaving current pensioners with inadequate pensions.

The paper acknowledges the March 8, 2024, amendment that raised the minimum monthly pension to ₹1,000, but argues that periodic review should become an integral feature of the restructured scheme.

AIACE/AICPA has proposed examining multiple funding sources, including government support, employer contributions, improved investment returns, investment portfolio restructuring and legally permissible sector- or production-linked mechanisms.

It has emphasised that every additional pension benefit must have an identifiable and sustainable source of funding.

Calls for permanent pension review mechanism

The association has argued that repeated amendments and prolonged periods without revision have left the scheme in need of a comprehensive review. It has proposed regular actuarial valuations and periodic assessments of pension adequacy, contributions, investment performance and inflation protection, with corrective action wherever necessary.

The study paper also traces developments between 2020 and 2026, including the Public Accounts Committee’s 12th Report, the February 2024 meeting of the CMPF Board of Trustees, the 2024 minimum pension amendment and the appointment of CRISIL Ltd. in February 2025 for investment monitoring and suggestions on intervention measures.

It also refers to the Ministry of Coal’s October 2025 public consultation on the Draft Coal Mines Employees’ Provident Fund and Miscellaneous Provisions Bill, 2025, in which AIACE/AICPA says it participated by submitting suggestions.

The association has urged the Ministry to constitute or authorise an appropriate senior-level mechanism to examine the issue and develop a sustainable restructuring framework within a defined timeframe.

Pensioners offer cooperation

Making its position clear, AIACE/AICPA said it was not asking the government to accept a pension enhancement proposal without examining its financial implications. Instead, it offered to share documentary records, pensioner data, information on beneficiaries’ difficulties and alternative proposals, and to participate constructively in actuarial and financial discussions.

The association has also expressed its willingness to consider alternatives if an independent assessment finds a particular proposal financially unsustainable.

The central demand is for pension adequacy and fund sustainability to be examined together rather than treated as competing objectives.

The proposed exercise, if taken forward, would provide a formal platform for the government, coal companies and pensioners’ representatives to assess the available options and their costs before deciding on a restructuring model for CMPS-1998.

AIACE/AICPA has called for a pension framework that is adequate for beneficiaries, sustainable for the fund, fair to existing pensioners and secure for future retirees.