Pension & Public Grievances (P & PG) Department was created on 02/09/1986 vide Administrative Reforms Department's Notification NO. AR. 52/83/7, dated 02/09/1986 for administration of all Legislation, Rules and Monitoring relating to Pension, Provident Fund and Group Insurance Scheme and to exercise the financial powers so far exercised by Finance (A & F) Department as Administrative Department.

Due to provincialization of many Government aided schools, a large number of employees serving in those schools came under the pension benefits schemes as are admissible to State Government employees. This has in turn led to a huge backlog of pending pension cases in the Education Department. The Directorate of Pension was conceptualized in the year 1989 and was constituted on 4th January, 1990 by the Government of Assam - mainly to quickly finalize the pension cases and to reduce the backlog. All works relating to Directorate of Pension are also monitored by PPG Department.