Ahead of 2026 assembly polls, Stalin announces Assured Pension Scheme for govt employees

Keeping an important segment of the electorate in good humour ahead of the 2026 assembly election, Chief Minister MK Stalin on Saturday announced the Tamil Nadu Assured Pension Scheme (TAPS) for government employees, providing 50% of the last drawn basic pay.

Following the new arrangement, pension will be equal to that of the last drawn pay of the government servant. Reverting to the Old Pension Scheme was a poll pledge of the ruling DMK and government servants, including teachers, have launched protests since last month to press Stalin to honour his assurance made in the 2021 election manifesto. With this announcement, Stalin has won over a vital segment, whose support is vital for the DMK’s return to power.

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Following the introduction of TAPS, the state government will incur an additional expenditure of Rs 13,000 crore for the pension fund. Further, the state government will be required to contribute an additional Rs 11,000 crore annually as its contribution. TAPS has been designed to continue to provide pension as well as various other benefits which the government servants and teachers were receiving previously under the Old Pension Scheme.

Under the TAPS, employees will have to contribute 10% of their basic pay for the pension fund while the state government will bear the additional fund required for the scheme, an official release said. The chief minister further announced that pensioners will be given dearness allowance (DA) hike twice a year at par with government servants and in the event of death of a pensioner, 60 % of the pension will be paid as family pension to the nominated beneficiary.

At the time of retirement or in case of death in harness, government servants are entitled to gratuity not exceeding Rs 25 lakh on the basis of tenure of service. With the onset of the TAPS, employees retiring without completing the mandatory qualifying period of service for receiving pension will be extended with a minimum pension, the release said. A ‘Special Compassionate Pension’ will be provided to those employees who entered service under the CPS and retired in the intervening period before the implementation of TAPS, it added.

The reaction of the Unions and Associations of government servants and teachers was on predicted lines with functionaries calling on Stalin to thank him.