FinMin Brings Executive Directors Under General Insurance Pension Scheme

The Ministry of Finance, through Notification No. S.O. 3470(E) dated July 28, 2025, introduced the General Insurance (Employees’) Pension (Amendment) Scheme, 2025 to amend the existing General Insurance (Employees’) Pension Scheme, 1995.

The amendment is deemed to have come into effect retrospectively from December 21, 2023.

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Key Change Introduced

The amendment officially includes Executive Directors of general insurance companies and corporations under the scope of the pension scheme. Specifically, it ensures that:

• Wherever the term "Chairman-cum-Managing Director" appears in the 1995 scheme, the words "and Executive Director" will now also be added.
• This inclusion appears in:
• Paragraph 2(g)(i) and Paragraph 2(k) of the scheme
• Appendix-I, which defines categories of employees eligible for pension benefits.

Previously, only Chairman-cum-Managing Directors (CMDs) were explicitly mentioned for certain pension-related provisions. Now, Executive Directors (EDs) will be equally entitled to pensionary benefits under the same rules.

Explanatory Note

The accompanying explanatory memorandum clarifies that Executive Directors (EDs) will now be entitled to the same pension benefits as those already applicable to Chairman-cum-Managing Directors (CMDs) under the General Insurance (Employees’) Pension Scheme.

Their pensionary benefits will be calculated per the Central Civil Services (Pension) Rules, 1972 and the Central Civil Services (Commutation of Pension) Rules, 1981, as applicable to Central Government employees. Importantly, the amendment is stated to be non-adverse, meaning it does not negatively impact the rights or benefits of any existing employees.

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