Lok Sabha Question No. 1046 (UNSTARRED), answered on 2023-02-08
Subject: Coal Miners Pension Scheme
Ministry: COAL
Asked by: Uttam Kumar Nalamada Reddy

## GOVERNMENT OF INDIA MINISTRY OF COAL LOK SABHA UNSTARRED QUESTION NO. 1046

## TO BE ANSWERED ON 08.02.2023

## Coal Miners Pension Scheme

## 1046.  Shri Uttam Kumar Reddy Nalamada:

Will the Minister of COAL be pleased to state:

- (a) the last time when pension provided to retired employees of Singareni Colleries and other coal companies covered under Coal Miners Pensions Scheme (CMPS) 1998 was got revised;
- (b) whether this revision has taken place every three years as per the provisions of CMPS 1998, if so, the details there of along with all revisions, year-wise and if not, the reasons therefor; and
- (c) whether  the  Government  is  planning  to  adopt  the  revisions  in  the  pension  scheme recommended by the 12 th PAC report introduced in the Parliament on 18 th March 2020, if  so,  the  details  thereof  along  with  the  projected  timeline  and  if  not,  the  reasons therefor?

## ANSWER

## MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES (SHRI PRALHAD JOSHI)

(a) & (b): No revision has taken place in the pension provided to retired employees of Singareni Colleries and other coal companies covered under Coal Miners Pensions Scheme (CMPS) 1998 since it  came into force on 31 st day of March, 1998 due to wide gap  between contribution to the fund and pension disbursement.

Coal Mines Pension Scheme, 1998 provides for valuation and review of the pension fund. The  Commissioner,  Coal  Mines  Provident  Fund  Organisation  (CMPFO)  is  responsible  for valuation of the Pension Fund every third year by an Actuary to be appointed by the Board of Trustees, CMPFO (BoT). When the Pension Fund permits, BoT on the recommendation of an Actuary and with the approval of the Central Government may amend the rates of contribution payable under the Scheme or the scale of any benefits admissible or the period for which such benefit may be allowed.

The actuarial evaluation report, which is based on the detailed analysis and taking into account  various  critical  aspects  like  defined  contribution  for  defined  benefit,  number  of pensioners, number of active workers, their dependents etc., to make the funds sustainable, was placed before the BoT from time to time. However, due to the resistance by the Central Trade Union representatives, who are also members of the BoT, the recommendation of the actuary to enhance pension contribution could not be implemented. The contribution to the fund was revised to  14  per  cent  from  the  erstwhile  4.91  per  cent  with  effect  from  1 st October, 2017. Despite this, contribution to the fund is less than the disbursement. Upward revision of pension was not possible due to the gap between accrual and disbursement. Accrual and disbursement during the last five years 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22 are given in the table below :-

| Financial Year   |   Accrual (Rs. crore) |   in Disbursement (Rs. in crore) |
|------------------|-----------------------|----------------------------------|
| 2017-18          |               1031    |                          2459.81 |
| 2018-19          |               3084.12 |                          2842.29 |
| 2019-20          |               3519.14 |                          3369.57 |
| 2020-21          |               4520.14 |                          3831.54 |
| 2021-22          |               4187.82 |                          4449.74 |

As per actuarial valuation, net liability of pension was Rs. 40,976.64 crores as on 31 st March, 2015 which has increased to Rs. 42,391.63 crores as on 31 st March, 2019.

- (c): Government has carefully considered and agrees in principle with the recommendations of 12 th PAC report for revision in pension scheme. Accordingly, the matter was brought before the BoT in its meetings from time to time; however, no consensus could be arrived due to resistance from Central Trade Union representatives.

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