Tamil Nadu Chief Minister M.K. Stalin has announced the launch of the Tamil Nadu Assured Pension Scheme (TNAPS) for State government employees and teachers. This move is expected to add an annual financial burden of approximately Rs 11,000 crore to the State exchequer. The decision follows persistent demands from employees and teachers for the reinstatement of the Old Pension Scheme (OPS).
Ahead of the 2021 Assembly elections, the DMK party had pledged to bring back OPS if they won. However, after nearly four-and-a-half years in power, this promise remained unfulfilled, leading to discontent among the employees and teachers. The situation escalated recently, with various organizations planning an indefinite strike from January 6, with pension reform being a key demand.
The government’s quick response to the escalating situation involves introducing a new pension framework, which the Chief Minister claims retains essential elements of the old system. The Assured Pension Scheme ensures retirees’ financial security by providing a pension equivalent to 50% of their last drawn monthly salary for eligible State government employees. The state will cover the additional financial burden for the pension fund, along with the employee’s 10% contribution, to guarantee this payout.
Pensioners under the new scheme will benefit from periodic dearness allowance (DA) revisions, similar to those for current government employees, to keep up with inflation. In case of a pensioner’s demise, 60% of the last drawn pension will be paid as family pension to the nominee or eligible family members. Retiring or deceased government employees will also receive a gratuity of up to Rs 25 lakh based on their years of service.
The TNAPS includes a provision for a minimum pension for employees who retire without completing the qualifying service period under the new scheme. This is to ensure that no retiring employee is left without basic pension support. Additionally, special compassionate pensions will be provided for employees under the Contributory Pension Scheme (CPS) and those who retired without any pension before the new scheme’s implementation.
The introduction of TNAPS by the DMK government aims to address employee concerns while managing fiscal constraints. Opposition parties and employee unions will closely monitor whether the new scheme adequately matches the benefits of the Old Pension Scheme that many are still advocating for.
