TN CM announces new assured pension scheme for govt employees

Fulfilling a long-pending demand of government employees and teachers, Tamil Nadu Chief Minister M K Stalin on Saturday announced the launch of the Tamil Nadu Assured Pension Scheme (TAPS), a new pension framework designed to offer benefits on par with the Old Pension Scheme.Under the new scheme, government employees will be entitled to an assured pension amounting to 50 per cent of the last drawn salary. While employees will continue to contribute 10 per cent of their salary, the state government will provide the entire additional funding required to sustain the Pension Fund.Pensioners covered under TAPS will also be eligible for Dearness Allowance revisions every six months, in line with serving government employees. In the event of a pensioner’s death, 60 per cent of the pension amount will be extended as family pension to the nominee.
The scheme also provides for a death gratuity of up to ₹25 lakh, depending on the length of service, in cases where an employee dies while in service or at the time of retirement. Further, employees who retire without completing the qualifying service period for pension eligibility will be assured a minimum pension once TAPS is implemented.
For employees who joined government service under the Contributory Pension Scheme and retired before the rollout of TAPS, the government has proposed a Special Compassionate Pension.The introduction of the new pension scheme will require the state government to infuse an additional ₹13,000 crore into the Pension Fund, while the annual expenditure towards the government’s contribution is estimated at around ₹11,000 crore. This contributory burden is expected to rise annually in line with salary increases.
Acknowledging the prevailing fiscal challenges, the chief minister said the government would fully bear the financial responsibility of the scheme to safeguard the interests of government employees and teachers. He urged them to extend cooperation for the smooth implementation of TAPS, describing it as equivalent to the Old Pension Scheme in terms of benefits.The government termed TAPS as a balanced and forward-looking initiative that addresses the long-standing aspirations of employees while securing the future of their families. Employee organisations, including the Joint Action Council of Tamil Nadu Teachers Organisations and Government Employees Organisation (JACTO-GEO), welcomed the announcement, noting that it addressed a demand pending for over two decades.
In a social media message, Stalin said the Dravidian Model government had honoured a 20-year-old demand of government employees through the new pension scheme, describing it as a New Year and Pongal gift. He added that the initiative reflected the government’s commitment to fulfilling the expectations of various sections of society as the state’s fiscal position improves.Political parties, including the CPI(M), also expressed support for the introduction of the Tamil Nadu Assured Pension Scheme.