NewsStocksTamil Nadu Announces New Assured Pension Scheme Guaranteeing 50% of Last Drawn Salary for Government EmployeesTamil Nadu Announces New Assured Pension Scheme Guaranteeing 50% of Last Drawn Salary for Government Employees
Tamil Nadu Chief Minister M K Stalin announced the Tamil Nadu Assured Pension Scheme on January 3, guaranteeing 50% of last drawn salary as pension for government employees and teachers. The scheme requires ₹13,000.00 crore initial funding and ₹11,000.00 crore annual government contribution, addressing a 20-year-old demand from employees.
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Tamil Nadu Chief Minister M K Stalin announced the Tamil Nadu Assured Pension Scheme (TAPS) on January 3, addressing a demand that government employees and teachers have maintained for over two decades. The new scheme promises to deliver benefits equivalent to the Old Pension Scheme, marking a significant policy shift for the state government.
Key Features of the Pension Scheme
The TAPS guarantees 50% of the last drawn salary as assured pension for government employees. The state government will provide the required additional funding to the Pension Fund, supplementing the existing 10% contribution from employees.
| Benefit Component: | Details |
|---|---|
| Assured Pension: | 50% of last drawn salary |
| Employee Contribution: | 10% (existing) |
| Government Funding: | Complete additional requirement |
| Dearness Allowance: | Every six months, matching active employees |
| Family Pension: | 60% of pension amount to nominee |
| Death Gratuity: | Up to ₹25.00 lakh based on service length |
Financial Implications and Government Commitment
The implementation of TAPS requires substantial financial commitment from the Tamil Nadu Government. The state must provide an additional ₹13,000.00 crore to the Pension Fund for the scheme's launch.
| Financial Requirement: | Amount |
|---|---|
| Initial Fund Addition: | ₹13,000.00 crore |
| Annual Government Contribution: | ₹11,000.00 crore |
| Contribution Growth: | Increases annually with salary increments |
Despite acknowledging the state's "severe financial situation," Chief Minister Stalin emphasized the government's commitment to fully bear the expenditure to protect the interests of government employees and teachers.
Additional Provisions and Benefits
The scheme includes several protective measures for different employee scenarios:
- Minimum Pension: Employees retiring without completing the qualifying service period will receive minimum pension benefits
- Special Compassionate Pension: Available for those who joined under the Contributory Pension Scheme but retire before TAPS implementation
- Death Benefits: Comprehensive coverage including death gratuity and family pension provisions
Stakeholder Response and Implementation
Representatives of the Joint Action Council of Tamil Nadu Teachers Organisations and Government Employees Organisation (JACTO-GEO) welcomed the announcement, describing it as the end of their 23-year struggle. A JACTO-GEO office-bearer confirmed that the scheme fulfills their key demands and aligns with their expectations.
Chief Minister Stalin characterized the announcement as a "grand New Year and Pongal gift" for government employees, emphasizing his government's commitment to fulfilling electoral promises. The scheme has received support from various political parties, including the CPI(M), reflecting broad political acceptance of the initiative.
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