The Department of Pension & Public Grievance is the nodal department for formulation of policies relating to pension and other retirement benefits of Assam Government employees. The Department administers and monitors the Acts and Legislations relating to Pension, General Provident Fund, Group Insurance Scheme, Commutation of Pension, Special Family Pension for which purpose, exercises the Financial Powers as the Administrative Department and acts as the Referral Department for interpretation of the Acts/rules governing pension and other related matters.

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 conceptualised in the year 1989 and was constituted on 4th January, 1990 by the Government of Assam - mainly to quickly finalise the pension cases and to reduce the backlog. All works relating to Directorate of Pension are also monitored by PPG Department.

Additionally, all Sanction Order of Commutation of Pension are issued by the Department in a chronological manner depending on the date of receipt of authority from Office of the Accountant General, Assam and Directorate of Pension, Assam.