Tamil Nadu Chief Minister M.K. Stalin has announced that the government will re-implement a pension plan similar to the Old Pension Scheme for state government employees and teachers, ending years of uncertainty and prolonged agitation by staff associations.
Under the new framework, called the Tamil Nadu Assured Pension Scheme (TAPS), beneficiaries will receive a pension calculated at 50% of their last drawn salary. Of this, 10% will be contributed by the employee, with the remainder financed by the government.
Key Features of the New Pension Plan
50% assured pension based on last salary after retirement.
Employee’s share of 10% will be deducted, while the government bears the balance.
Family pension at 60% of the pension if the retiree passes away.
Periodic dearness relief increases every six months for those receiving the pension.
Minimum pension safeguards are included even if service tenure is incomplete at retirement.
Employees could receive a lump-sum payout of up to ₹25 lakh on retirement or in the event of death during service, linked to service duration.
This announcement comes amid rising pressure from government employees’ and teachers’ unions — including JACTTO-GEO and POTA-GEO — who had threatened an indefinite strike beginning January 6 to press for reinstatement of a guaranteed pension system.
Officials held several rounds of talks with union leaders after a committee, headed by senior IAS officer Gagandeep Singh Bedi, submitted its final report on pension reforms.
With the new pension plan, the state hopes to address long-standing demands while avoiding the full fiscal burden of the original old pension model that was discontinued in 2004.