TN Unveils 50% Assured Pension for Govt Staff Ahead of Polls
TN Unveils 50% Assured Pension for Govt Staff Ahead of Polls
Tamil Nadu launches the Tamil Nadu Assured Pension Scheme, promising 50% of last drawn basic pay as pension with biannual DA hikes, plus family pension and gratuity provisions.
In a move aimed at addressing a long-standing demand from government staff, Tamil Nadu Chief Minister M.K. Stalin announced on Saturday the Tamil Nadu Assured Pension Scheme (TAPS). The plan, prepared after a three-member Pension Committee studied multiple models, would extend the benefits of the Old Pension Scheme to current and future retirees.
Under TAPS, an employee's pension would be 50% of their last-drawn basic pay. Employees would contribute 10% of their basic pay to the pension fund, while the state government would cover the remaining funding. Pensioners would receive dearness allowance hikes twice a year, aligned with serving employees.
In the event of a pensioner's death, 60% of the pension would be paid as a family pension to the nominee. At retirement or in the event of death during service, gratuity would be capped at ₹25 lakh, based on length of service. Those who retire before meeting the qualifying service period would receive a minimum pension.
For those who joined under the Contributory Pension Scheme and had not drawn a pension before TAPS, a 'special compassionate pension' would be granted.
The state estimates an additional ₹13,000 crore will be required to seed the Pension Fund, with annual state contributions of around ₹11,000 crore, a figure expected to rise with salary scales.
Officials stressed that the scheme aims to safeguard workers' livelihoods even as the government faces a tight fiscal situation ahead of polls.
