Chennai: In a landmark decision fulfilling a demand over two decades old, Tamil Nadu Chief Minister M.K. Stalin on Saturday announced the launch of the Tamil Nadu Assured Pension Scheme (TN APS) for government employees and teachers. The new scheme promises to provide benefits comparable to the Old Pension Scheme (OPS), addressing long-standing concerns of state employees about retirement security.

Key Features of the New Pension Scheme

Under the TN Assured Pension Scheme:

• Employees retiring from government service will receive 50% of their last drawn salary as assured pension.
• The state government will bear the additional funding required for the pension fund beyond the 10% contribution of employees, ensuring full implementation.
• Pensioners under the scheme will receive Dearness Allowance (DA) hikes every six months, aligned with government employees’ DA increments.
• In the event of a pensioner’s death, 60% of the pension amount will be granted as family pension to the nominee.
• If an employee dies while in service or at the time of retirement, up to ₹25 lakh will be provided to the family depending on the length of service.
• Employees retiring without completing the qualifying service period for pension will be provided a minimum assured pension.
• For those who joined under the Contributory Pension Scheme (CPS) prior to the new TN APS, a Special Compassionate Pension will be granted.

Financial Implications

The implementation of the TN Assured Pension Scheme requires a one-time additional contribution of ₹13,000 croreto the Pension Fund. Furthermore, the annual government contribution to maintain the scheme is expected to be around ₹11,000 crore, with the contributory amount increasing each year in line with employees’ salaries.

Despite acknowledging the state’s current severe financial situation, CM Stalin assured that the government would fully bear the expenditure to safeguard the interests of government employees and teachers.

Government Employees and Teachers Welcome the Scheme

Representatives of the Joint Action Council of Tamil Nadu Teachers Organisations (JACTO) and the Government Employees Organisation (GEO) welcomed the announcement, describing it as the end of a 23-year struggle for a fair pension system.

“The new scheme fulfills our key demand and aligns with our expectations,” a JACTO-GEO office-bearer told reporters.

Office-bearers from these associations met the CM at the Secretariat to personally thank him for the historic decision, which they termed a grand New Year and Pongal gift for state employees.

CM Stalin’s Statement

In a social media post, CM Stalin said the Dravidian Model government led by him had fulfilled the 20-year-old demand of government employees by announcing the TN Assured Pension Scheme. He added that this decision demonstrates the government’s commitment to the people who have placed trust in his party, asserting:

“The Dravidian model of good governance alone will continue! The demands of all sections will be fulfilled automatically, without even asking for it, as Tamil Nadu’s fiscal status improves.”

Political and Public Response

The scheme has received widespread appreciation from government employees, teachers, and political parties, including the Communist Party of India (CPI). The state government termed the TN Assured Pension Scheme as both visionary and practical, balancing fiscal responsibility with the welfare of employees and the security of their families.

With this historic move, Tamil Nadu joins the select few states offering assured pensions for all government employees, fulfilling a demand that has persisted since the phasing out of the Old Pension Scheme more than two decades ago.