CHENNAI: Fulfilling a 23-year demand of state government employees and teachers, Tamil Nadu Chief Minister M K Stalin on Saturday announced the Tamil Nadu Assured Pension Scheme (TAPS), which he said would offer benefits equivalent to the Old Pension Scheme (OPS).
According to a statement, the CM said the TAPS aims to provide pension certainty and financial security to them and their families.
The TNIE was the first to report on January 2 that the employees are anticipating an Assured Pension Scheme.
JACTTO-GEO and FOTA-GEO had earlier announced an indefinite strike from January 6, which they now said was being withdrawn. Representatives of employees’ unions called on the Chief Minister at the State Secretariat and thanked him for the TAPS.
Under TAPS, government employees and teachers will receive a guaranteed pension equal to 50% of the last drawn monthly salary. Employees will contribute 10% of their salary, while the entire additional financial burden required to ensure the assured pension will be borne by the Tamil Nadu government.
Pensioners will be eligible for Dearness Allowance (DA) increases every six months, on par with serving government employees. In the event of the pensioner’s death, 60% of the last drawn pension will be paid as a family pension to the nominated family members.
Gratuity up to Rs 25 lakh will be paid on retirement or in the event of death during service, based on the length of service.
After the implementation of TAPS, a minimum pension will be ensured for all employees who retire without completing the qualifying service for pension. Employees who joined service under the Contributory Pension Scheme (CPS) and retired without a pension before the implementation of TAPS will be provided a special compassionate pension.
The state government will make a one-time additional contribution of Rs 13,000 crore to the pension fund. The Tamil Nadu government will also contribute around Rs 11,000 crore annually, with this amount increasing each year in line with salary revisions.
Despite financial constraints, the state government will fully bear the cost of implementing TAPS to safeguard the welfare of government employees and teachers, an official statement said.