Coal Pension Hike: CMPFO Rules Out Immediate Increase, Fund Sustainability Under Review
The response offers no immediate relief to retired coal employees seeking an increase in their monthly pensions
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The Coal Mines Provident Fund Organisation (CMPFO) has ruled out any immediate enhancement of pensions for retired coal employees, citing the findings of an actuarial evaluation of the Coal Mines Pension Fund.
In a letter dated October 27, 2026, the organisation said the issue of pension enhancement had been examined from time to time, but the actuarial assessment did not permit an increase at present. The sustainability of the pension fund is currently under examination by a high-level committee constituted by the Ministry of Coal.
The letter was issued by Madhuresh Kumar Singh, Assistant Commissioner, CMPFO, in response to a representation seeking higher pensions and improved medical facilities for retired coal employees. The representation was submitted by D R Ramchander Rao, president of the Singareni Retired Employees Welfare Association, Hyderabad.
Minimum Pension Fixed at ₹1,000 Per Month
CMPFO stated that the minimum pension of ₹1,000 per month has been extended to eligible pensioners under the Coal Mines Pension Scheme (CMPS), 1998, and the Coal Mines Family Pension Scheme (CMPFS), 1971, in accordance with the relevant government notifications.
The organisation cited Gazette Notification No. G.S.R. 165(E), dated March 8, 2024, and G.S.R. 370(E), dated May 15, 2026, in this regard.
According to the letter, the minimum monthly pension under CMPS, 1998, currently stands at ₹1,000, while the average monthly pension under the scheme is more than ₹10,000.
CMPFO also clarified that the scheme does not prescribe a maximum pension limit. Pension is determined on the basis of pensionable salary and qualifying service, in accordance with the scheme’s provisions.
High-Level Committee Examining Pension Fund Sustainability
The organisation’s response indicates that the immediate hurdle to a pension increase is the financial sustainability of the pension fund.
CMPFO said the actuarial evaluation did not permit any enhancement at present. It added that the sustainability of the Coal Mines Pension Fund was being examined by a high-level committee constituted by the Ministry of Coal.
Any further action on pension enhancement will depend on the outcome of this examination and the decision of the competent authority.
The letter, however, does not specify when the committee is expected to complete its examination or whether a revised pension structure will be considered subsequently.
Medical Facilities Demand Outside CMPFO’s Mandate
On the demand for improved medical facilities for retired coal employees, CMPFO stated that the matter does not fall within its mandate.
The clarification separates the pension-related demand from the issue of healthcare facilities for retired coal workers, leaving the latter to be pursued through the appropriate authorities.
Pensioners Await Relief
The response offers no immediate relief to retired coal employees seeking an increase in their monthly pensions. Any future enhancement will depend on the findings of the high-level committee examining the fund’s sustainability and the subsequent decision of the competent authority.
For pensioners dependent on the scheme, the outcome of this examination will be crucial in determining whether the existing pension structure can be revised.
