What is the new Tamil Nadu Assured Pension Scheme (TAPS)? Key details inside

Tamil Nadu Chief Minister M K Stalin recently announced an assured pension scheme for government employees and teachers, restoring the Old Pension Scheme. Introducing the new Tamil Nadu Assured Pension Scheme (TAPS), Stalin said that the new scheme will provide the benefits of the old scheme. 

Under the scheme, government employees and teachers will receive a guaranteed pension equivalent to 50% of their last drawn monthly salary. This benefit was also available under the old pension scheme, but was eliminated in 2003. 

Key details of Tamil Nadu Assured Pension Scheme

1. Under the scheme, 50% of the last drawn salary of government employees would be offered as the assured pension.

2. To provide 50% of the last drawn monthly salary as pension, 10% contribution will be given by the employees, and the rest will be provided by the state government. 

3. Pensioners will also receive a Dearness Allowance hike every six months, on par with government employees.

4. If a pensioner dies, 60% of the pension amount would be granted as a family pension to the nominees. 

5. If any employee dies in harness, or in case of death at the time of retirement, death gratuity of up to ₹25 lakh would be provided. The amount of death gratuity would depend on how long the employee has worked.

6. After this scheme is implemented, all who retire without completing the qualifying service period for receiving a pension will be provided a minimum pension.

7. Employees who joined service under the Contributory Pension Scheme and retired without a pension before the implementation of TAPS will be given a special compassionate pension. 

8. For the introduction of this scheme, the Tamil Nadu government has to provide an additional ₹13,000 crore to the Pension Fund, and has to bear an expenditure of nearly ₹11,000 crore as the government's contribution every year. 

"This contributory amount will increase every year depending on the salary of the employees." Despite the "severe financial situation" currently faced by the Tamil Nadu government, to protect the interests of government employees and teachers, the state government will fully bear such expenditure, a PTI report quoted CM Stalin as saying.

For two decades, JACTTO-GEO (Joint Action Council of Tamil Nadu Teachers’ Organisations and Government Employees’ Organisations) has been demanding the restoration of the benefits under the old scheme. 

The Tamil Nadu government announced this following the recent report by a three-member Pension Committee headed by Additional Chief Secretary (Rural Development and Panchayat Raj) Gagandeep Singh Bedi. The committee studied various pension schemes to suggest a suitable pension model for Tamil Nadu.

In a social media post on X, the CM said that the government has given a major New Year and Pongal gift to government employees by announcing this scheme.

“The #DravidianModel government has fulfilled a 20-year-long demand!” the CM said.

Following the announcement, JACTTO-GEO withdrew its indefinite strike that was scheduled to begin on January 6.