Tamil Nadu Announces Assured Pension Scheme for Employees
Tamil Nadu Chief Minister M K Stalin has announced the Tamil Nadu Assured Pension Scheme for state government employees and teachers, marking a major policy shift in the state’s retirement benefits framework. The scheme is aimed at addressing long-standing demands from employee unions seeking restoration of assured pension benefits similar to the pre-2003 pension system.
Key Features of the New Pension Scheme
Under the new scheme, eligible retired employees will receive a guaranteed pension amounting to 50 percent of their last drawn basic pay. The pension will be revised in line with Dearness Allowance increases, ensuring protection against inflation. In the event of the pensioner’s death, family members will receive a family pension set at 60 percent of the original pension amount. The scheme also includes retirement gratuity benefits linked to years of service, subject to prescribed limits.
Funding and Contributions
Government employees covered under the scheme will continue to contribute a fixed percentage of their basic pay towards the pension fund. The Tamil Nadu government will bear the remaining financial burden required to ensure assured payouts. Officials indicated that the state will make a substantial initial contribution to stabilise the pension fund, followed by recurring annual support.
Response From Employees and Next Steps
The announcement has been welcomed by government employees and teachers’ associations, many of which had planned protests over pension-related demands. The state government said detailed guidelines and implementation timelines will be issued shortly, and the scheme is expected to provide long-term financial security to retirees while maintaining fiscal balance.
