Stalin launches Tamil Nadu Assured Pension Scheme

Fulfilling the over 2-decade-old demand of Government employees and teachers, Chief Minister MK Stalin on Saturday announced a new plan, the “Tamil Nadu Assured Pension Scheme,” and said it would provide the benefits of the Old Pension Scheme.

Fifty per cent of the last drawn salary of Government employees would be the assured pension, the chief minister announced.

For this purpose, the state Government would provide, alongside the 10 per cent contribution of the employees, the required entire additional funding to the Pension Fund.

Pensioners receiving a 50 per cent assured pension would be granted a Dearness Allowance hike every six months on a par with Government employees.

In case of the death of pensioners, 60 per cent of the pension amount would be granted as family pension to the nominee of the deceased.

If an employee dies in harness, or in case of death at the time of retirement, upto a maximum of Rs 25 lakh (Death gratuity) would be provided in keeping with the length of service.

After the implementation of the new Assured Pension Scheme, all who retire without completing the qualifying service period for receiving pension will be provided a minimum pension, the chief minister said in an official release.

In case of retirement, ahead of the implementation of the TN Assured Pension Scheme, of those who joined the Government service under the Contributory Pension Scheme, they would be provided a Special Compassionate Pension.

In view of the introduction of the TAPS, the Tamil Nadu Government has to provide an additional Rs 13,000 crore to the Pension Fund.  Also, annually, the TAPS implementation would entail an expenditure of approximately Rs 11,000 crore as the Government’s contribution.

“This contributory amount will increase every year depending upon the salary of the employees.” Despite the “severe financial situation” currently faced by the Tamil Nadu Government, in order to protect the interests of Government employees and teachers, the state Government will fully bear such expenditure, the CM said.

Stalin appealed to Government employees and teachers to extend full cooperation for the implementation of the new scheme and assured them that it is equivalent to the benefits under the Old Pension Scheme.

The TAPS is visionary and practical, considering the interests of Government employees, teachers and the future of their families, and the new scheme fulfills their 20-year-old demand, the Government said.

Representatives of the Joint Action Council of Tamil Nadu Teachers Organizations and Government Employees Organisation (JACTO-GEO) welcomed the new scheme and thanked the chief minister, adding it marked the end of their 23-year-old struggle.