New assured pension scheme for govt employees, teachers in TN

Chennai, Jan 3 Tamil Nadu Chief Minister M.K. Stalin on Saturday announced the implementation of a new Tamil Nadu Assured Pension Scheme (TNAPS) for State government employees and teachers, a move expected to impose an additional annual financial burden of around Rs 11,000 crore on the State exchequer.

The announcement comes against the backdrop of long-standing demands by government employees and teachers for the restoration of the Old Pension Scheme (OPS).

Ahead of the 2021 Assembly elections, the DMK had promised to reinstate OPS if voted to power.

However, nearly four-and-a-half years after assuming office, the government had not fulfilled that promise, leading to growing discontent among employees and teachers.

The issue had escalated in recent weeks, with various employees and teachers' organisations declaring an indefinite strike from January 6, making pension reform one of their primary demands.

With the Assembly elections approaching, the government appears to have moved swiftly to defuse the situation by unveiling a new pension framework that it says incorporates key features of the old system.

According to the Chief Minister, the newly announced Assured Pension Scheme guarantees enhanced financial security for retirees while ensuring long-term fiscal sustainability for the State.

Under the scheme, eligible State government employees will receive an assured pension equivalent to 50 per cent of their last drawn monthly salary.

To ensure this guaranteed payout, the state government will bear the entire additional financial liability required for the pension fund, along with the employee's 10 per cent contribution.

The scheme also provides for periodic dearness allowance (DA) revisions, similar to those granted to serving government employees.

Pensioners will receive DA hikes every six months, ensuring that pensions keep pace with inflation.

In the event of a pensioner's death, 60 per cent of the pension last drawn will be paid as the family pension to the nominee or eligible family members.

Additionally, upon retirement or death during service, government employees will be entitled to a gratuity of up to Rs 25 lakh, calculated based on the length of their service.

Another significant feature of the scheme is the provision of a minimum pension to employees who retire without completing the qualifying service period after the new scheme comes into effect. This is aimed at ensuring that no retiring employee is left without basic pension support.

The government has also announced special compassionate pensions for employees who joined the Contributory Pension Scheme (CPS) and for those who retired during the interim period without receiving any pension before the implementation of the new assured scheme.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor