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Tamil Nadu Issues Order Bringing Assured Pension Scheme Into Effect From Jan. 1

Detailed rules will follow before full rollout.

Overview

  • The Finance Department issued the Government Order on January 9 and circulated it on January 10 to implement the Tamil Nadu Assured Pension Scheme effective January 1, 2026.
  • The scheme is mandatory for employees entering government service from January 1, 2026, and will also cover CPS-governed staff who retire on or after that date.
  • Employees who joined before 2026 under the CPS will be allowed at retirement to choose between TAPS benefits or benefits equivalent to the CPS.
  • The design provides an assured pension equal to 50% of last-drawn basic pay plus dearness allowance, funded by a 10% employee contribution with the State meeting the remaining cost.
  • Additional features include a 60% family pension, twice-yearly DA hikes in line with serving staff, and gratuity capped at ₹25 lakh, with operational guidelines to be notified separately.