Overview
- A Finance Department order dated January 9, circulated January 10, brings the Tamil Nadu Assured Pension Scheme into effect from January 1, 2026.
- The scheme is mandatory for all eligible recruits who join on or after the effective date, and CPS-covered employees retiring on or after that date will come under TAPS subject to notified rules.
- Employees will contribute 10% of basic pay, and the State will fund any shortfall to guarantee a pension equal to 50% of last drawn basic pay plus dearness allowance.
- Those who joined before 2026 under CPS may choose at retirement between TAPS benefits or CPS-equivalent payouts, with features including a minimum pension, commutation, a 60% family pension on death, biannual DA hikes, and gratuity up to ₹25 lakh.
- Employee bodies welcomed the decision, while AIADMK leader Edappadi K. Palaniswami criticized it as election-driven and likened it to the Centre’s Unified Pension Scheme.