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Tamil Nadu Announces Assured Pension Plan Paying 50% of Last Drawn Basic Pay

Unions that threatened an indefinite strike on January 6 will review the offer to decide their next steps.

Overview

  • Chief Minister M. K. Stalin unveiled the Tamil Nadu Assured Pension Scheme, promising an assured pension equal to half of a retiree’s last-drawn basic pay.
  • Employees will contribute 10% of basic pay to the fund, while the State covers the balance, with an estimated ₹13,000 crore initial outlay and about ₹11,000 crore in annual contributions.
  • Pension features include twice-yearly dearness allowance revisions, a 60% family pension after a pensioner’s death, and gratuity up to ₹25 lakh based on service.
  • The scheme provides a minimum pension for those retiring without qualifying service and a special compassionate pension for CPS employees who retired before implementation.
  • Federations representing government staff and teachers, after failed December 22 talks and a committee review led by Gagandeep Singh Bedi, will meet to decide on the planned January 6 strike.