CM Stalin announces Tamil Nadu Assured Pension Scheme, guarantees 50% last-drawn pay for govt employees

Tamil Nadu Chief Minister MK Stalin. (File photo)

• Tamil Nadu launches Assured Pension Scheme for govt employees and teachers
• Scheme offers 50% of last basic pay as pension, with DA revisions twice a year
• Unions withdraw strike after scheme announcement; govt to bear major costs

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Amid mounting pressure from employees’ unions and days ahead of a proposed strike, Tamil Nadu Chief Minister MK Stalin on Saturday announced the rollout of the Tamil Nadu Assured Pension Scheme (TAPS), a long-pending demand of State government employees and teachers, according to reports.

Calling it a measure to guarantee stability after retirement, the Chief Minister said the new scheme would offer benefits comparable to the Old Pension Scheme (OPS) and ensure financial security for employees and their families.

Instead, the official statement said the TAPS is aimed at providing pension certainty and long-term protection for beneficiaries.

Under the scheme, State government employees will receive an assured pension equal to 50% of their last-drawn basic pay. Employees will contribute 10% of their basic salary to the pension fund, while the State government will bear the remaining financial responsibility required to meet the assured payout.

According to an official release, pensioners will be eligible for dearness allowance revisions twice a year, in line with serving government employees. In case of the pensioner’s death, “60% of the pension that was being received by the pensioner will be paid as family pension to the nominated beneficiary.”

The scheme also provides for a gratuity of up to Rs 25 lakh at the time of retirement or in the event of death during service, calculated based on the length of service. Further, a minimum pension will be ensured for employees who retire without completing the qualifying service period required for pension eligibility.

Addressing gaps under the earlier Contributory Pension Scheme (CPS), the government said employees who joined service under the CPS and retired before the implementation of TAPS would be granted a “special compassionate pension.”

The announcement comes against the backdrop of an indefinite strike call from January 6 by employees’ unions JACTTO-GEO and FOTA-GEO. Following the Chief Minister’s decision, the unions announced the withdrawal of the strike. Representatives of the unions met the Chief Minister at the Secretariat and thanked him for the introduction of TAPS.

The financial implications of the scheme are significant. The State government will make a one-time additional contribution of Rs 13,000 crore to the pension fund. In addition, it will contribute approximately Rs 11,000 crore annually, with the amount set to increase in line with future salary revisions.

Despite fiscal constraints, the government said it would fully absorb the cost of implementing the scheme to safeguard the welfare of government employees and teachers, adding that TAPS is designed to continue the pension and retirement benefits employees earlier received under the Old Pension Scheme.