New pension reform in Tamil Nadu: Assured retirement benefits introduced

Key Highlights

• Designed as a balanced reform, the Tamil Nadu Assured Pension Scheme blends features of the former defined pension system with the contributory pension model, ensuring long-term financial stability for state employees and teachers.
• Under TNAPS, eligible employees will receive a guaranteed pension equivalent to 50 per cent of their last drawn basic pay and dearness allowance (DA).
• Pensioners under the scheme will continue to receive DA revisions twice a year, on par with serving government employees.
• The rollout fulfils a long-standing demand from employee and teacher unions since the Contributory Pension Scheme (CPS) replaced the old pension model.
• To support the enhanced pension benefits, the state has reiterated that 10 per cent of an employee’s salary will be deducted as a contribution.