In January 2026, Tamil Nadu (TN) Chief Minister (CM) Muthuvel Karunanidhi (M.K.) Stalin announced the ‘TN Assured Pension Scheme (TAPS)’ for State government employees and teachers, providing pension and retirement benefits equivalent to the Old Pension Scheme (OPS).
- What? TN Announces Tamil Nadu Assured Pension Scheme (TAPS)
- Announced by? M.K. Stalin, CM of TN
- For whom? State government employees and teachers
- Pension: Assured pension of 50% of last-drawn basic pay
- Employee Contribution: 10% of basic pay
- State Contribution: Entire additional requirement
- Benefits: DA revision twice a year, 60% family pension, gratuity up to Rs.25 lakh
About Tamil Nadu Assured Pension Scheme (TAPS):
Objective: Provides assured post-retirement income security to State government employees by restoring OPS-equivalent benefits while retaining a contributory structure.
Contribution: Requires employees to contribute 10% of basic pay, with the TN Government bearing the entire additional financial liability.
Safeguards: Ensures minimum pension for employees retiring without qualifying service and special compassionate pension for Contributory Pension Scheme (CPS) employees who retired without pension before TAPS implementation.
Benefits: Guarantees a pension equal to 50% of last-drawn basic pay with Dearness Allowance (DA) revised twice yearly, provides 60% family pension to nominees, and grants gratuity up to Rs. 25 lakh on retirement or death during service based on service length.
Finance: Involves a one-time government contribution of Rs.13,000 crore and an annual contribution of around Rs. 11,000 crore, expected to rise with future salary revisions.
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