CHENNAI – Tamil Nadu Chief Minister M.K. Stalin recently announced the Tamil Nadu Assured Pension Scheme (TAPS) . The new scheme aims to provide government employees and teachers with benefits similar to the Old Pension Scheme (OPS). This initiative addresses a demand active for over two decades. The state government plans to spend an additional Rs 13,000 crore initially to fund the scheme.
TAPS will ensure a pension equivalent to 50 per cent of an employee’s last drawn salary . The state government will contribute the necessary additional funds to the Pension Fund. This is alongside the employees’ 10 per cent contribution.
Key Pension Benefits
The new scheme includes several benefits for eligible individuals:
- Assured Pension: 50 per cent of the last drawn salary.
- Dearness Allowance (DA): Pensioners will receive DA hikes every six months, matching increases for government employees.
- Family Pension: In case of a pensioner’s death, 60 per cent of the pension amount will be paid to the nominee.
- Death Gratuity: If an employee dies during service or at retirement, a maximum of Rs 25 lakh will be provided. The amount depends on the length of service.
- Minimum Pension: Employees retiring without completing qualifying service will receive a minimum pension.
- Special Compassionate Pension: This applies to those who joined under the Contributory Pension Scheme and retired before TAPS implementation.
Financial Commitment
Implementing TAPS requires significant financial outlay. The Tamil Nadu government must provide an initial Rs 13,000 crore to the Pension Fund. Annually, the government’s contribution to TAPS will be approximately Rs 11,000 crore . This annual figure will increase based on employee salaries. Chief Minister Stalin stated the state government will bear all expenditures. This commitment comes despite the government facing a challenging financial situation.
Employee Response and Scheme Background
The announcement fulfills a 20-year-old demand from government employees and teachers. Representatives from the Joint Action Council of Tamil Nadu Teachers Organisations and Government Employees Organisation (JACTO-GEO) welcomed the scheme. They thanked the Chief Minister, calling it the end of their 23-year struggle. JACTO-GEO leaders confirmed the scheme aligns with their key demands.
The DMK government had promised to implement the Old Pension Scheme in its 2021 Assembly election manifesto. A committee led by senior State official Gagandeep Singh Bedi was appointed to study the matter. This committee recently submitted its final report to Chief Minister Stalin.
Political Reactions
The scheme received mixed political reactions. CPI(M) State Secretary P. Shanmugam and CPI State Secretary M. Veerapandian welcomed the move. Shanmugam stated it brought joy to nine lakh government employees and teachers. He also urged the government to issue a Government Order for immediate implementation and address other pending demands. PMK founder S. Ramadoss thanked the Chief Minister and called for regularizing contract personnel.
However, PMK leader Anbumani criticized the timing. He claimed the DMK government could have implemented the scheme earlier. He suggested the announcement was a deceptive act to attract votes during the end of its term.
Chief Minister Stalin referred to TAPS as a New Year and Pongal gift for government employees. He affirmed his government’s commitment to fulfilling public demands.