The Tamil Nadu government on Saturday, December 3, announced the Tamil Nadu Assured Pension Scheme (TAPS), fulfilling a 23-year-old demand by government employees seeking reforms in the pension system.
Under the scheme, government employees are assured a pension amounting to 50% of their last drawn monthly salary. Employees will contribute 10% of their salary towards the pension, while the government will contribute the remaining share.
The scheme also provides for Dearness Allowance (DA) hikes every six months, on par with serving government employees. In addition, it includes provisions for a family pension, under which nominees will receive 60% of the employee’s pension in the event of their death.
TAPS further assures a minimum pension amount for employees who retire without completing the required service period for eligibility under a regular pension scheme.
An ex gratia pension has also been announced for employees who joined service under the Contributory Pension Scheme but retired before the implementation of TAPS.
The scheme provides for a gratuity of up to Rs 25 lakh for employees upon retirement or in the event of death, depending on their length of service.
The implementation of the scheme is expected to entail an immediate cost of Rs 13,000 crore, with an annual recurring expenditure of Rs 11,000 crore for the state government.
Government employees have long been demanding the restoration of the Old Pension Scheme, which was replaced by the Comprehensive Pension Scheme in 2003.
The reinstatement of the Old Pension Scheme was a key poll promise of the DMK in 2021. Meanwhile, government employee associations, including the Joint Action Council of Tamil Nadu Teachers’ Organisations and Government Employees’ Organisation (JACTO-GEO), had announced plans for an indefinite hunger strike to press the government to fulfil its commitment.
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