- The General Insurance (Employees’) Pension (Amendment) Scheme 2025 now includes pension benefits for Executive Directors, giving them the same benefits as CMDs.
- The amendment updates important clauses and legal rules of the original 1995 Pension Scheme, effective from December 21, 2023.
- This change helps keep leadership, promotes fairness, and lifts morale within public sector general insurance companies.
If you work in the public sector general insurance field, it’s important to know about the General Insurance (Employees’) Pension Scheme and its latest 2025 amendment. This update makes sure Executive Directors get pension benefits similar to those of Chairman-cum-Managing Directors, reflecting their current leadership roles. The Ministry of Finance’s recent update focuses on fairness and recognition of top executives’ work, as mentioned in the official gazette notification dated July 28, 2025.
Pension Benefits Now Extended to Executive Directors
Executive Directors (EDs) are now officially included in the pension benefits that were earlier only for Chairman-cum-Managing Directors (CMDs). This change makes sure EDs have the same financial security after retirement as CMDs in public sector general insurance companies. The amendment applies retroactively from December 21, 2023, recognizing that EDs play key leadership roles in today’s corporate structures.
Legal and Procedural Updates in the Amendment
The 2025 amendment brings specific changes to the General Insurance (Employees’) Pension Scheme, 1995, especially in Paragraph 2:
- Clause (g)(i): Now includes “Executive Director” along with “Chairman-cum-Managing Director,” expanding pension eligibility.
- Clause (k) Proviso: Extends the mention to Executive Directors wherever CMD was previously stated.
Also, Appendix-I of the scheme updates employee categories, adding Executive Directors alongside CMDs as eligible for pension benefits. These legal changes are backed by Section 17A of the General Insurance Business (Nationalisation) Act, 1972, giving them strong legal support.
Also Read – PM VIKAS Scheme Launches New Skill Development Centre at Tilak Nagar, Delhi
Why This Amendment Matters
Adding Executive Directors to pension benefits is an important step toward equal treatment among senior leaders in public sector general insurance firms. This change is expected to:
- Keep leaders from leaving by making pension benefits fair for top executives.
- Promote fairness and recognize the important responsibilities EDs have that are on par with CMDs.
- Raise morale and motivation among senior management, supporting steady leadership.
These steps help public insurance companies keep strong leadership while matching benefits to today’s business needs.
Background of the General Insurance (Employees’) Pension Scheme, 1995
The original General Insurance (Employees’) Pension Scheme, started in 1995, mainly gave retirement benefits to employees and CMDs of public sector insurance companies. As company structures changed, leadership roles grew, especially with Executive Directors taking on more duties. Updating the pension scheme with the 2025 amendment reflects this shift, making sure senior executives get the recognition and post-retirement security they deserve.
| Key Detail | Information |
|---|---|
| Notification Date | July 28, 2025 |
| Effective Date | December 21, 2023 |
| Governing Act | General Insurance Business (Nationalisation) Act, 1972, Section 17A |
| File Number | S -14011/02/2025 Ins.I |
| Authority | Parshant Kumar Goyal, Joint Secretary, Department of Financial Services |
| Official Gazette URL | https://finmin.gov.in/ |
This amendment shows the government’s commitment to updating policies with changes in organizations. If you’re an Executive Director or part of the leadership in public sector general insurance, you can expect fair pension benefits that recognize your role and service. Keep an eye on official sources at ministry of finance for more updates and guidance.