After exchequer burden talk, government stands by TAPS of DMK regime

CHENNAI: A day after stating that the State government has to shell out a few crores more for the Tamil Nadu Assured Pension Scheme (TAPS) introduced during the previous DMK regime, the TVK-led government has decided to continue with and has issued detailed guidelines for interim pension payments to eligible government employees retiring on or after January 1, 2026.

According to an order issued by the Finance Department, government servants who have completed at least 10 years of qualifying service and retire on or after January 1, 2026, will be eligible to opt for a monthly interim payout until the final TAPS rules are formally notified.

As per the order, the interim payout will be calculated at 30 per cent of the last drawn basic pay or Rs 10,000 per month, whichever is higher. In addition, beneficiaries will receive dearness relief at 60 per cent of the payout amount.

The government has also provided for family benefits under the scheme. In the event of the death of a retired employee receiving the interim payout, eligible family members will be entitled to 60 per cent of the monthly payout as family assistance.

"The interim payout or family payout shall commence from the day following the employee's exit from government service, either on superannuation or in the event of death," the order stated.

The Finance Department clarified that the interim arrangement would remain in force until comprehensive rules governing the TAPS are finalised and notified by the government.

The decision is expected to provide financial certainty to thousands of government employees retiring after January 1, 2026.

The government order also spells out the eligibility criteria for family pension beneficiaries. In the case of a deceased male retiree, his wife will be eligible to receive the interim monthly family payout. Similarly, if a retired female employee dies, her husband will be entitled to receive the benefit.

The order further states that a son or an unmarried daughter who has not attained the age of 25 years will also be eligible to receive the family payout, subject to the conditions prescribed under the scheme.