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Tamil Nadu Unveils Assured Pension Scheme Guaranteeing 50% of Last Pay

The move answers a two-decade demand from employees by reviving OPS-style security with a contributory design.

Overview

  • Chief Minister M. K. Stalin announced the Tamil Nadu Assured Pension Scheme, offering retirees 50% of last-drawn basic pay as a guaranteed pension.
  • Employees will contribute 10% of basic pay while the state covers the additional funding, with pensioners receiving dearness hikes twice a year.
  • In case of a pensioner’s death, 60% of the pension goes to the nominee, and gratuity up to ₹25 lakh is available at retirement or death in service.
  • Those retiring without the qualifying service will receive a minimum pension, and CPS-era retirees before TAPS takes effect will get a special compassionate pension.
  • The state pegs the immediate fund need at about ₹13,000 crore and a recurring annual outlay near ₹11,000 crore; unions have withdrawn a planned January 6 strike, though an official start date was not specified, with employee representatives saying rollout was assured within the current financial year.