CHENNAI: The Federation of Tamil Nadu State Transport Retired Employees' Welfare Associations has urged the state government to release dearness allowance (DA) arrears to the legal heirs of retired transport employees and family pensioners who died before receiving the benefit.
The federation cited the Madurai Bench of the Madras High Court's orders in a writ petition and several contempt petitions, including an order dated August 21, 2026, in support of its demand.
In a representation to the Additional Chief Secretary of the Transport Department, federation general secretary S Natarajan said the government had ordered the release of Rs 3,637 crore towards DA arrears for retired employees and family pensioners for the period from November 2015 to 2026, through a GO dated August 31, 2026.
The federation said around 98,000 retired employees of state transport undertakings had been denied DA since 2015. Following court orders and protests, the DA was revised on December 31, 2025 from 119% to 262% for those who retired before 2016 and from 5% to 60% for those who retired on or after September 1, 2016.
The government subsequently ordered payment of the arrears in 48 monthly instalments of Rs 75 crore each, followed by a final instalment of Rs 37 crore. The first payment was made on September 5 to retired employees and family pensioners, the federation said.
However, the federation pointed out that some employees who retired between November 2015 and June 2026 had died, and their spouses who later became family pensioners had also died.
It sought an order allowing the DA arrears due to such deceased pensioners to be paid to their sons or daughters, who are their legal heirs.