CHENNAI: Giving effect to the announcement made by Chief Minister MK Stalin last week about the Tamil Nadu Assured Pension Scheme (TAPS), the state government on Saturday issued an order to implement the scheme from January 1, 2026.
As per the G.O., TAPS will become operational after the notification of rules and completion of statutory norms and accounting procedures. The order, however, does not specify when these procedures will be completed.
Importantly, the government has sought to extend TAPS to employees recruited under the Contributory Pension Scheme (CPS). Employees who joined service under CPS and retired on or after January 1, 2026, will be covered under TAPS, subject to rules to be notified. Those who were in service before January 1, 2026, will be given an option during retirement to choose between TAPS or CPS-equivalent benefits.
Pensioners under TAPS eligible for DA hikes
Such employees will also be allowed to commute a portion of their pension, subject to conditions to be laid down. Further, employees who retired under CPS prior to the rollout of TAPS will be granted a special compassionate pension, proportionate to their length of service. The scheme also assures a minimum pension, the quantum of which will be prescribed later, and permits commutation of a portion of pension under specified conditions.
As promised by the CM, the scheme promises an assured monthly pension equal to 50% of the last-drawn salary, calculated on basic pay plus dearness allowance (DA). The employees will contribute 10% of their monthly salary, while the additional financial commitment required to ensure the assured pension will be fully borne by the state. Pensioners and family pensioners under TAPS will also be eligible for DA revisions on a par with serving government employees, addressing one of the key criticisms of CPS. In the event of a pensioner’s death, the family pension at 60% of the last pension drawn will be paid to eligible dependents. The scheme also provides for gratuity proportional to qualifying service, subject to a maximum ceiling of `25 lakh, upon retirement or death while in service.
The order further states that all employees covered under TAPS, including those who initially joined service under CPS but are subsequently brought under TAPS and opt for its benefits at retirement, will be entitled to a minimum pension, the quantum of which will be prescribed separately. TAPS has been devised after a detailed study by a high-level panel chaired by senior IAS officer Gagandeep Singh Bedi, which examined the Old Pension Scheme (OPS), CPS and the Unified Pension Scheme (UPS) notified by the union government in 2025. The committee submitted its report on December 30, 2025. The state said the move balances employee welfare with the need for long-term fiscal sustainability, ensuring uninterrupted payment of salaries and pensions in upcoming years.