With the upcoming Assembly elections, Tamil Nadu Chief Minister M K Stalin recently introduced the Tamil Nadu Assured Pension Scheme (TAPS). This scheme guarantees a pension amounting to 50% of the last-drawn monthly salary for state government employees and teachers. Following this announcement, employee unions have decided to withdraw their proposed indefinite strike, initially set to commence on January 6.
Under TAPS, government employees will contribute 10% of their basic salary to the pension corpus, while the state government will cover the remaining costs. This initiative represents a partial restoration of the benefits associated with the Old Pension Scheme (OPS), where the government solely funded pensions. Notably, pensioners under TAPS will also benefit from Dearness Allowance (DA) increments every six months, aligning with serving employees.
The scheme ensures a family pension amounting to 60% of the last-drawn pension in the event of a pensioner's death. Additionally, TAPS guarantees a gratuity of up to ₹25 lakh upon retirement or in the event of death during service, contingent on the years of service completed. Importantly, it assures a minimum pension for employees who retire without fulfilling the qualifying service period. Special compassionate pensions will also be available for employees who joined under the Contributory Pension Scheme (CPS) but retired without pension benefits.
The implementation of TAPS is anticipated to considerably elevate the financial burden on the state. The government is projected to make a one-time contribution of ₹13,000 crore to the pension fund, alongside an annual contribution of approximately ₹11,000 crore, which will be adjusted periodically in line with salary increments. According to PRS Legislative Research, Tamil Nadu currently allocates about 62% of its revenue receipts to committed expenditures, including salaries, pensions, and interest payments, a figure expected to rise further.
This announcement comes after a prolonged 23-year demand from employee unions for the restoration of the Old Pension Scheme. A committee led by IAS officer Gagandeep Singh Bedi recently presented recommendations on this matter. Although the DMK had pledged to restore OPS in its 2021 manifesto, the government has opted for TAPS instead. Union representatives under the JACTTO-GEO banner welcomed this decision and expressed gratitude to the Chief Minister, even as sources suggested that the scheme may take effect from January 1, 2027, following the upcoming Assembly elections.
Q1. What is the Tamil Nadu Assured Pension Scheme (TAPS)?
Answer: TAPS is a pension scheme for Tamil Nadu government employees, guaranteeing a pension equal to 50% of the last-drawn monthly salary, funded partly by employee contributions.
Q2. How much do employees contribute to TAPS?
Answer: Employees are required to contribute 10% of their basic salary to the TAPS pension corpus, with the state government covering the rest.
Q3. What are the benefits for pensioners under TAPS?
Answer: Pensioners receive a family pension of 60% of the last-drawn pension and gratuity up to ₹25 lakh, along with biannual Dearness Allowance hikes.
Q4. How will TAPS impact Tamil Nadu's finances?
Answer: The implementation of TAPS is expected to increase Tamil Nadu's financial burden, with an estimated one-time contribution of ₹13,000 crore and annual contributions of around ₹11,000 crore.
Q5. When is TAPS expected to be implemented?
Answer: TAPS is anticipated to come into effect on January 1, 2027, after the upcoming Assembly elections, as indicated by various sources.
Question 1: What percentage of the last-drawn salary does TAPS guarantee as pension?
A) 40%
B) 50%
C) 60%
D) 70%
Correct Answer: B
Question 2: How much do employees contribute to the Tamil Nadu Assured Pension Scheme?
A) 5%
B) 10%
C) 15%
D) 20%
Correct Answer: B
Question 3: What is the family pension percentage under TAPS?
A) 50%
B) 60%
C) 70%
D) 80%
Correct Answer: B
Question 4: When is TAPS expected to be implemented?
A) January 1, 2025
B) January 1, 2026
C) January 1, 2027
D) January 1, 2028
Correct Answer: C
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