Overview
- The Cabinet led by Chief Minister M. K. Stalin cleared the Tamil Nadu Assured Pension Scheme for government employees, with an assured pension equal to 50% of last-drawn basic pay.
- Officials present the model as inter-generational equity, shifting part of pension costs to employees rather than the state bearing the full liability.
- The scheme’s payment structure differs from the Contributory Pension Scheme and the National Pension System, where CPS members receive a lump sum and may buy annuities, meaning not all receive a lifelong pension.
- Detailed operational guidelines and formal fiscal costings have not yet been issued by the government.
- An editorial estimates a one-time payout of about ₹13,000 crore and an annual burden near ₹11,000 crore and suggests the move could spur similar demands in other states, including Kerala.