The Ministry of Finance, through a gazette notification dated July 28, 2025, has officially introduced the General Insurance (Employees') Pension (Amendment) Scheme, 2025, aimed at updating the pension entitlements of key managerial personnel in public sector general insurance companies.
The amendment, which will be deemed effective from December 21, 2023, brings Executive Directors (EDs) under the same pensionary provisions that were previously available only to Chairman-cum-Managing Directors (CMDs).
The revised provisions have been made under Section 17A of the General Insurance Business (Nationalisation) Act, 1972, and apply to employees governed under the original General Insurance (Employees') Pension Scheme, 1995.
Key Highlights of the Amendment
In Paragraph 2 of the 1995 scheme:
- Clause (g)(i) now includes "Executive Director" alongside "Chairman-cum-Managing Director."
- Clause (k), in its proviso, extends similar inclusion wherever the CMD was previously referred.
In Appendix-I of the scheme:
- The category of employees eligible for pension benefits is updated to insert "Executive Director" alongside "Chairman-cum-Managing Director."
This move is expected to bring parity in pension benefits among top-level functionaries of general insurance PSUs, aligning with evolving management structures and ensuring that Executive Directors are recognized for their leadership contributions.
The notification was issued under file number S -14011/02/2025 Ins.I, and signed by Parshant Kumar Goyal, Joint Secretary, Department of Financial Services.
Background and Impact
The original 1995 scheme provided pension benefits to employees of public sector general insurance companies, including specific provisions for CMDs. Over time, as organizational structures evolved and Executive Directors began shouldering significant operational responsibilities, there was a need to extend equivalent post-retirement benefits to them.
By incorporating EDs within the pension eligibility framework, the government seeks to improve leadership retention, ensure fairness in post-service entitlements, and boost morale within the top executive cadre.
Official copy of the notification has been attached
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