CM Stalin announces Tamil Nadu Assured Pension Scheme for govt. employees

Tamil Nadu Chief Minister M.K. Stalin on Saturday (January 3, 2026) announced that the State government will implement the Tamil Nadu Assured Pension Scheme (TAPS) for State government employees. Under the new arrangement, State government employees will be provided with an assured pension equal to 50% of their last-drawn basic pay.

According to an official release, under the TAPS, employees will have to contribute 10% of their basic pay to the pension fund, while the entire additional fund requirement needed to provide the assured pension will be borne by the State government.

Pensioners will be given dearness allowance (DA) hikes twice a year, on a par with the DA increases granted to government employees. In the event of the death of a pensioner, 60% of the pension that was being received by the pensioner will be paid as family pension to the nominated beneficiary.

At the time of retirement, or in the event of death during service, government employees will be provided with a gratuity not exceeding ₹25 lakh, based on the tenure of their service.

After the implementation of the TAPS, employees who retire without completing the qualifying service period required to receive pension will be provided with a minimum pension.

Employees who joined service under the Contributory Pension Scheme (CPS) and retired without receiving any pension during the interim period before the implementation of the TAPS will be granted a ‘special compassionate pension’.

With the introduction of the TAPS, the Tamil Nadu government will have to incur an additional expenditure of ₹13,000 crore for the pension fund. Additionally, the State government will have to contribute approximately ₹11,000 crore every year as its annual contribution.

The scheme is designed to continue providing the pension and various benefits that government employees and teachers were earlier receiving under the Old Pension Scheme, the release added.