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The Tamil Nadu Secretariat Association has written to Chief Minister Vijay expressing their objection to the reduction of the allocation for pensions and retirement benefits in the state’s first full Budget presented by the Tamilaga Vettri Kazhagam (TVK) government.
In its representation to the Chief Minister on Thursday, August 6, the association said the reduction of nearly Rs 14,000 crore in pension-related allocations for government employees and teachers, had come as a “major shock” at a time when government employees and teachers were expecting the new government to restore the Old Pension Scheme (OPS).
The Budget for 2026-27 was presented in the Assembly by the Finance Minister Marie Wilson on August 5.
According to the association, the total allocation under various pension and retirement benefits has been reduced from Rs 57,207.16 crore in the interim Budget estimates for 2026-27 to Rs 43,203.81 crore in the revised Budget estimates with a decline of Rs 14,003.32 crore.
The association pointed to reductions across several categories of expenditure. The allocation for Superannuation and Retirement Allowances has been reduced from Rs 21,624.32 crore to Rs 19,946 crore, while Commuted Value of Pension has been lowered from Rs 2,227.93 crore to Rs 2,047.93 crore.
The allocation for Gratuities has been reduced from Rs 3,668 crore to Rs 3,218 crore, Family Pension from Rs 6,872.76 crore to Rs 6,597.76 crore, and Pensions to Employees of State Aided Educational Institutions from Rs 6,816.47 crore to Rs 6,396.47 crore.
The significant reduction, the association said, was under the Government Contribution for Defined Contribution Pension Scheme, where the allocation has been cut from Rs 15,997.05 crore to Rs 4,997.05 crore, amounting to a reduction of Rs 11,000 crore.
In its letter, the association said the entire annual allocation of Rs 11,000 crore earmarked for the Tamil Nadu Assured Pension Scheme (TAPS), which had been announced by the previous Dravida Munnetra Kazhagam (DMK) government, had been removed in the revised estimates.
It further claimed that an additional Rs 3,000 crore had been reduced across other pension-related categories.
“On behalf of the Tamil Nadu Secretariat Association, we register our strong objection to this decision,” the association said.
The association urged the Chief Minister Vijay to clarify in the Assembly the reasons behind the reduction in pension-related allocations.
It also requested the government to announce the implementation of the Old Pension Scheme, describing it as the “lifelong dream” of government employees and teachers in the state.