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Tamil Nadu Launches TAPS, Guaranteeing Half of Last Basic Pay as Pension

The announcement defuses a planned strike pending union scrutiny of the fine print.

Overview

  • Employees will contribute 10% of basic pay, with the state covering the balance to deliver the 50% assured pension.
  • The government estimates a ₹13,000 crore one-time infusion and about ₹11,000 crore in annual contributions, rising with salary revisions.
  • Key features include twice‑yearly DA hikes, 60% family pension after the pensioner’s death, gratuity up to ₹25 lakh, a minimum pension, and a special compassionate pension for CPS retirees.
  • Major federations have withdrawn the January 6 indefinite strike call, while implementation awaits legal rule changes and administrative orders, including migration options for roughly 6.2–6.5 lakh CPS employees.
  • Officials describe the design as closely aligned with OPS yet contributory, with pension funds to be invested via PFRDA instead of LIC.