CHENNAI: Finance Minister Thangam Thennarasu said the state government has allocated Rs 11,000 crore as its additional contribution for implementing the newly introduced Tamil Nadu Assured Pension Scheme (TAPS) for government employees.
He said government employees will receive pensionary benefits comparable to those under the Old Pension Scheme (OPS), fulfilling a long-standing demand of nearly 22 years. The scheme, which has been widely welcomed by employee associations, assures a monthly pension of 50% of the last pay drawn, Dearness Allowance hikes on a par with serving employees, family pension, minimum pension, commutation and death-cum-retirement gratuity benefits.
As per 2025-26 policy note, there were around 6.94 lakh pensioners and family pensioners in the state and 43,912 employees who retired under the Contributory Pension Scheme (CPS) were receiving retirement benefits under the Defined Benefit Pension Scheme and CPS, respectively. Expenditure on pensions and retirement benefits accounted for 14.2% of the total revenue expenditure in 2024–25.
Under the CPS, introduced in April 2003, 6.24 lakh employees, including those of local bodies, were enrolled as of March 31, 2005. A total of Rs 84,507 crore had been accumulated as employee and employer contributions along with interest. These employees are now covered under the Tamil Nadu Assured Pension Scheme.