In a significant move addressing a long-standing demand, the Tamil Nadu government has formally issued the order detailing the rollout of the Tamil Nadu Assured Pension Scheme (TAPS). This comes a week after Chief Minister M K Stalin's announcement, effectively bringing an end to the two-decades-old protest by the JACTTO-GEO union.
Key Features of the New TAPS Scheme
The order, dated January 9 and issued by Additional Chief Secretary T Udhayachandran, provides statutory backing to the CM's announcement. The scheme will become operational after the notification of rules and completion of necessary statutory and accounting requirements. It is designed with the welfare of employees in mind, while also considering the state's long-term financial health.
TAPS will be mandatory for all government employees who enter service from January 1, 2026. Crucially, it also provides a major relief to more than six lakh existing government employees currently under the Contributory Pension Scheme (CPS). These employees will now have the option to choose between the benefits of TAPS and those available under the CPS at the time of their retirement.
Financial Benefits and Employee Contributions
The scheme guarantees an assured pension equivalent to 50% of the last drawn monthly salary, which includes basic pay and dearness allowance. To fund this, employees will contribute 10% of their monthly salary, with the state government bearing the additional financial burden.
Pensioners under TAPS will receive dearness allowance revisions twice a year, matching the revisions for serving employees. The order also materialized other announcements, including eligibility for a gratuity of up to Rs 25 lakh upon retirement or death in service. In case of a pensioner's death, 60% of the last drawn pension will be paid as family pension to the nominee or legal heir.
Choice for Employees and Special Provisions
A key highlight is the choice offered to CPS employees. Those opting for TAPS will be allowed to commute a portion of their pension, subject to certain conditions. Furthermore, employees who joined service under the CPS and retired during the intervening period will be eligible for a special compassionate pension, proportionate to their service period.
The government's decision follows a careful examination of the recommendations made by the committee led by Gangandeep Singh. Welcoming the order, Tamil Nadu Secretariat Association President G Venkatesan stated that offering employees a choice between CPS and TAPS was a positive step.
This landmark reform aims to balance employee welfare with fiscal responsibility, ensuring uninterrupted payment of salaries and pensions for the long term.
