In a bid to put an end to the growing demands of the government employees in the state, chief minister M.K. Stalin announced the implementation of Tamil Nadu Assured Pension Scheme (TAPS). The announcement comes as a major relief to lakhs of government employees and teachers who have been protesting for the past 20 years since 2004, demanding the implementation of the old pension scheme.
According to an official release from the government the new scheme called as TAPS, the employees will have to contribute 10 per cent of their basic pay to the pension fund, while the additional fund requirement needed to provide the assured pension will be borne by the state government. The new scheme ends a two-decade-long demand by the employees who have been under the Contributory Pension Scheme since 2003. While the official release did not mention on the timeline of the implementation of TAPS, the employees say that the chief minister assured that it will be implemented from the current financial year.
Through the scheme the pensioners will be given Dearness Allowance (DA) hike twice a year on par with government employees. In the event of the death of a pensioner, 60 per cent of the pension that was being received by the pensioner will be paid as family pension to the nominated beneficiary. At the time of retirement, or in the event of death during service, government employees, through TAPS, are eligible to receive a gratuity not exceeding Rs 25 lakh, based on the tenure of their service. Apart from this, the employees who retire without completing the qualifying service period, which is required to receive pension, are also eligible to receive a minimum pension. This will come into effect after the implementation of the TAPS.
The employees who joined service under the Contributory Pension Scheme (CPS) and retired in the intervening period before the implementation of TAPS are eligible for a special compassionate pension. With the introduction of TAPS, the Tamil Nadu government will incur an additional expenditure of Rs 13,000 crore for the pension fund and the government will additionally have to contribute approximately Rs 11,000 crore every year as its annual contribution, which will increase year on year.
In the four-page release Stalin described the employees as the “wheels of administration” who deliver the welfare scheme to the last mile. Emphasising on the DMK government’s commitment to welfare, chief minister in the statement said “this government, following the path of Kalaignar Karunanidhi, has always prioritised the well-being of government employees and teachers. Giving out the details on DMK’s pro-government employee initiatives since 2021, he listed out the various schemes announced by his government in the past four years including restoring DA hikes on par with the Centre, reintroducing earned leave encashment from October 2025, unique insurance, which includes Rs 1 crore for death in accident, and Rs 10 lakh for natural death, enhanced educational and marriage advances, higher house-building advance up to Rs 50 lakh, increased retirement gratuity to Rs 25 lakh and medical insurance to Rs 10 lakh for pensioners and maternity leave to 12 months.
The umbrella organisation of the government employees and teachers (JACTTO -GEO) had called for an indefinite strike from January 6, a move that could disrupt the functioning of the government. The employees had called for the strike with a charter of 10 demands, including the withdrawal of the Contributory Pension Scheme and the restoration of the Old Pension Scheme. The government constituted a three-member committee comprising ministers E.V. Velu, Thangam Thennarasu and Anbil Mahesh Poyyamozhi to hold discussions with the unions.
The indefinite strike call by the employees has now been withdrawn after the chief minister announced the assured pension scheme for the government employees. The announcement will benefit all the employees over 6.2 lakh employees and those who retired.
With TAPS, the government has done a fine balancing act by opting for a pension scheme that assures 50 per cent of the last drawn salary as pension and also retains the contributory component.
