Chennai: Tamil Nadu Chief Minister M K Stalin, on 3 January, announced the Tamil Nadu Assured Pension Scheme (TAPS), addressing a long-standing demand of government employees and teachers for pension benefits similar to the Old Pension Scheme.
Under TAPS, government employees will receive an assured pension equal to 50 per cent of their last drawn salary.
The state government will contribute the required amount to the Pension Fund in addition to the 10 per cent employee contribution. Pensioners will also be entitled to Dearness Allowance hikes every six months, in line with serving employees.
In case of a pensioner’s death, 60 per cent of the pension will be paid as a family pension.
The scheme provides death gratuity of up to Rs 25 lakh based on length of service if an employee dies while in service or at retirement.
A minimum pension will be ensured for those retiring without qualifying service, while retirees under the Contributory Pension Scheme will receive a Special Compassionate Pension.
The government will make an additional provision of Rs 13,000 crore, with annual expenditure estimated at Rs 11,000 crore.