Tamil Nadu government to recover excess interim pension payout under TAPS

CHENNAI: The Tamil Nadu government has stated that any excess amount credited to pensioners as interim payout under the Tamil Nadu Assured Pension Scheme (TAPS) will be recovered.

In a circular issued by Finance Secretary N Venkatesh to the Director of Treasuries and Accounts, the Finance Department said retired government servants 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.

“Based on relevant rules and procedures, the actual admissible payout will be calculated for each person based on their qualifying service. Retired government staff who have completed 18 years of service and above will be eligible for 30% of their last drawn monthly basic pay or Rs 10,000 as interim payout, whichever is higher,” the department stated. Venkatesh added that if pensioners were credited with a payout of 30% despite not having completed 18 years of qualifying service, the excess amount would be recovered from their bank accounts in 10 equal instalments.

The TVK-led government has decided to continue with TAPS, which was 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. The Finance Department clarified that local bodies and corporations staff are not eligible for interim payout under the new pension scheme.