CHENNAI: The State government has withheld an order to recover excess pension payments already transferred to pensioners under the Tamil Nadu Assured Pension Scheme (TAPS) after opposition from government employees and their associations.

The government said it will rectify the difference between the interim payout and the final pension amount in the future.

In a recent circular issued by Finance Secretary (Expenditure) N Venkatesh to the Director of Treasuries and Accounts, the Finance Department stated that retired government employees with more than 10 years but less than 18 years of qualifying service would be sanctioned an interim monthly payout of Rs 10,000 at a flat rate, excluding applicable dearness relief.

Venkatesh had stated that if pensioners were credited with a payout equivalent to 30 per cent despite not having completed 18 years of qualifying service, the excess amount would be recovered from their bank accounts in 10 equal instalments.

The announcement triggered protests among government employees and teachers, prompting the government to withhold the Finance Secretary's order.

The TVK-led government has decided to continue the TAPS introduced during the previous DMK regime and issued detailed guidelines for interim pension payments to eligible government employees retiring on or after January 1, 2026.