Coal pensioners seek ₹10,000 minimum payout as Centre rules out revision

Retirees seek inflation-linked revisions after the government told Parliament no enhancement proposal is under consideration following an actuarial assessment of the pension fund

Coal sector pensioners on Saturday stepped up their demand for an overhaul of the Coal Mines Pension Scheme, seeking a minimum monthly pension of ₹10,000, Industrial Dearness Allowance (IDA)-linked revisions, and improved healthcare benefits.

 

The move by the Coal Employees’ Forum (CEF), a non-political platform representing the interests of Coal India retirees, Coal Mines Provident Fund Organisation (CMPFO) pensioners and widows of coal workers, comes days after the government told Parliament that no proposal for pension enhancement was currently under consideration due to concerns over the financial sustainability of the pension fund.

 

The ministry of coal informed the Lok Sabha on July 22 that pension revision under the Coal Mines Pension Scheme, 1998, was dependent on actuarial recommendations and that the latest actuarial valuation, as of March 31, 2022, did not recommend enhancement due to a shortfall in the pension fund.

   

The ministry also said there was currently no proposal under consideration for pension enhancement, indexation, dearness relief or periodic revision under the scheme.  

 

The CEF, however, has demanded that the minimum monthly pension under both the Coal Mines Family Pension Scheme, 1971 (CMPFS-1971), and Coal Mines Pension Scheme, 1998 (CMPS-1998), be increased to ₹10,000, pointing out that pension amounts for several retired coal workers and family pensioners have remained largely unchanged for decades and are not linked to Industrial Dearness Allowance (IDA), leaving retirees vulnerable to inflation.

 

The organisation has also demanded regular inflation-linked pension revision, periodic actuarial reviews, transparent audits of pension funds, restoration of discontinued pensions due to procedural issues, improved medical coverage, and pension parity with other central government and public sector undertaking retirees.

 

In its Lok Sabha reply, the Ministry of Coal stated that the minimum monthly pension under the Coal Mines Pension Scheme, 1998, was revised to ₹1,000 with effect from March 8, 2024, benefiting eligible pensioners.

 

The Ministry said the scheme does not prescribe any maximum ceiling on pension and that pension is determined based on factors including average emoluments during the last 10 months of service, pensionable service, and the applicable category of pension.

 

The government also said that ₹515 crore was disbursed to 4.58 lakh pensioners in May 2026, averaging a monthly pension of over ₹10,000.

 

On Saturday, however, the CEF pointed to concerns among sections of pensioners who are receiving significantly lower amounts. According to the Forum, around 21,000 pensioners receive less than ₹1,000 per month, while several widow pensioners under the older pension scheme continue to receive family pension of ₹320 per month.

 

The Forum said Coal India has around six lakh pensioners and family pensioners, of whom nearly 4.76 lakh are currently drawing pensions. It further claimed that around 47,000 pensioners have stopped receiving pensions due to issues such as non-submission of life certificates, lack of awareness and procedural difficulties.

 

Apart from pension revision, healthcare access was another key demand raised by the CEF, which claimed that over four lakh retired coal workers are without Coal India medical cards, restricting their access to healthcare. It urged the government to extend Ayushman Bharat or similar medical coverage, particularly for pensioners aged 75 years and above, and to provide affordable healthcare for retired employees and widows.

 

“Retired coal workers spent decades serving one of India’s most hazardous industries and deserve a dignified life after retirement,” the CEF said, appealing to the ministry as well as the central government “to address the long-pending demands and implement meaningful pension reforms at the earliest".