The Coal Mines Provident Fund Organisation (CMPFO) has declined to take a decision on a demand for enhancement of pension for retired coal employees, stating that the matter is primarily related to government policy and falls outside its administrative jurisdiction.
The issue concerns a demand to fix a minimum monthly pension of ₹10,000 for retired coal employees and provide Dearness Relief (DR) to existing pensioners from January 1, 2027, in order to help them cope with inflation.
In a letter dated August 31, 2026, the Office of the Commissioner, CMPFO, said the grievance had been examined by the Policy Division at CMPFO Headquarters, Dhanbad. The organisation informed the complainant that the matter was policy-related and therefore could not be decided at the CMPFO administrative level.
Pension fund’s financial position cited
A crucial aspect of the internal office note enclosed with the CMPFO response is the financial condition of the pension fund.
According to the Hindi office note dated August 19, 2026, the fund’s Actuarial Valuation Report indicated that the Coal Mines Pension Fund was running with a financial deficit of about ₹48,000 crore as of March 2022.
The note also points out that the existing Coal Mines Pension Scheme, 1998 (CMPS-1998) does not contain any statutory provision for providing Dearness Relief to pensioners.
The office note consequently states that, in view of the severe financial constraints of the fund and the absence of a corresponding provision in the pension scheme, the proposal to increase the existing pension and provide Dearness Relief cannot be implemented under the prevailing circumstances.
Matter shifted to policy level
CMPFO’s response also refers to an Office Memorandum issued by the Department of Administrative Reforms and Public Grievances (DARPG) on December 10, 2014.
The memorandum, reproduced as the third page of the document, provides that grievances involving policy decisions, statutory amendments or matters pending before or connected with courts may be disposed of after informing the complainant of the factual position. It also provides that such matters can be reconsidered if a future development warrants a fresh examination.
The CMPFO has accordingly disposed of the grievance under this framework, while indicating that any future development or change in the applicable rules could provide grounds for reconsideration.
A setback for retired coal employees
The response is likely to disappoint retired coal-sector employees seeking higher pensions and inflation-linked relief. Their demand for a ₹10,000 minimum pension and Dearness Relief now faces two major hurdles: the substantial actuarial deficit in the pension fund and the absence of a provision for DR under the existing CMPS-1998.
The CMPFO’s position, however, does not necessarily amount to a permanent rejection of the demand. The August 31 communication makes clear that the issue has been treated as a policy matter, while the 2014 government memorandum allows policy-related grievances to be reconsidered if there is a fresh development warranting such action.
Key points
- Demand: Minimum pension of ₹10,000 per month.
- Additional demand: Dearness Relief for existing pensioners from January 1, 2027.
- CMPFO’s position: The issue is primarily policy-related and outside its administrative jurisdiction.
- Fund position cited: Around ₹48,000 crore deficit according to the actuarial valuation referred to in the office note.
- DR provision: The CMP Scheme, 1998 does not provide for Dearness Relief.
- Future possibility: The matter may be reconsidered if a new development or change in applicable rules warrants it.
