CHENNAI: The Tamil Nadu Assured Pension Scheme (TAPS) for State government employees and teachers has come into effect from January 1, according to a Government Order issued on Saturday.
TAPS will be mandatory for all eligible government employees and teachers who enter service on or after January 1. All eligible employees governed by the Contributory Pension Scheme (CPS) who retire on or after January 1, 2026, will be covered under the new pension framework.
Employees who joined service before January 1 and were covered under the CPS will be given a one-time option at the time of retirement to choose between the benefits under the TAPS or benefits equivalent to what they would have received under the CPS.
Government employees covered under the TAPS, including those who initially joined service under the CPS and later come under the new scheme and opt for its benefits at retirement, will be entitled to a minimum assured pension and will be permitted to commute a portion of their pension.
The Government Order said the scheme would be made fully operational after the notification of rules and the completion of necessary statutory and accounting procedures. Detailed rules, eligibility conditions, operational guidelines and implementation procedures will be notified separately by the Tamil Nadu government.
Under the scheme, State government employees will be provided an assured pension equal to 50% of their last-drawn basic pay and dearness allowance. Employees will contribute 10% of their basic pay towards the pension fund, while the additional financial requirement to provide the assured pension will be borne by the State government.
In the event of the death of a pensioner, 60% of the pension will be paid as family pension to the nominee. Pensioners and family pensioners will also be entitled to DA revisions twice a year, on a par with serving government employees.
At the time of retirement or in the event of death during service, employees will be eligible for gratuity based on the length of service, subject to a maximum of Rs 25 lakh.