Amid mounting pressure from government employees’ unions and just days before an indefinite strike was scheduled to begin, Tamil Nadu Chief Minister M.K. Stalin on Saturday announced the implementation of the Tamil Nadu Assured Pension Scheme (TAPS). The announcement led to the immediate withdrawal of the proposed strike by employees’ unions Joint Action Council of Tamil Nadu Teachers Organisation and Government Employees Organisation (JACTTO-GEO) and Federation of Teachers Association (FOTA-GEO).

The Chief Minister described the new scheme as a step towards ensuring stability and financial security for government employees and teachers after retirement. According to official statements, TAPS is designed to offer benefits comparable to the Old Pension Scheme (OPS) and to provide long-term protection for employees and their families.

Calling it a measure to guarantee stability after retirement, the Chief Minister said the scheme would ensure pension certainty and safeguard the future of beneficiaries. “TAPS is aimed at providing pension certainty and long-term protection for beneficiaries,” the official statement said.

Under the Tamil Nadu Assured Pension Scheme, State government employees will receive an assured pension equal to 50% of their last-drawn basic pay. As part of the scheme, employees will contribute 10% of their basic salary towards the pension fund. The State government will bear the remaining financial responsibility required to meet the assured pension payout.

According to the official release, pensioners under TAPS will also be eligible for dearness allowance (DA) revisions twice a year, similar to serving government employees. This provision is aimed at ensuring that pension amounts keep pace with inflation and rising living costs.

The scheme also includes provisions for a family pension. In the event of the pensioner’s death, “60% of the pension that was being received by the pensioner will be paid as family pension to the nominated beneficiary,” the statement said. This measure is intended to provide financial support to the family members of deceased pensioners.

In addition, TAPS provides for a gratuity of up to ₹25 lakh at the time of retirement or in the event of death during service. The gratuity amount will be calculated based on the length of service completed by the employee. The government has also ensured that a minimum pension will be provided to employees who retire without completing the qualifying service period required for pension eligibility.

Addressing shortcomings under the earlier Contributory Pension Scheme (CPS), the government announced relief for employees who had joined service under CPS and retired before the implementation of TAPS. Such employees will be granted a “special compassionate pension,” as per the official release.

The announcement of TAPS comes against the backdrop of an indefinite strike call from January 6 by employees’ unions JACTTO-GEO and FOTA-GEO, which had been demanding the restoration of pension benefits similar to the Old Pension Scheme. Following the Chief Minister’s decision, the unions announced the withdrawal of the strike.

Representatives of JACTTO-GEO and FOTA-GEO met the Chief Minister at the Secretariat after the announcement and expressed their gratitude for the introduction of the Tamil Nadu Assured Pension Scheme. They thanked him for addressing the long-pending demand of government employees and teachers.

The financial implications of the scheme are significant. According to the government, it will make a one-time additional contribution of ₹13,000 crore to the pension fund. In addition, the State will contribute approximately ₹11,000 crore annually, with this amount expected to increase in line with future salary revisions.

Despite existing fiscal constraints, the government said it would fully absorb the cost of implementing the scheme. The official statement noted that the decision was taken to safeguard the welfare of government employees and teachers. It added that TAPS has been designed to continue the pension and retirement benefits that employees earlier received under the Old Pension Scheme.

By announcing the Tamil Nadu Assured Pension Scheme, the State government has sought to balance employee welfare with long-term financial planning, while responding to union demands and ensuring pension security for thousands of government employees and their families.