Tamil Nadu Assured Pension Scheme starts for State government employees from January 1, 2026

The Hindu
The Hindu
25m ago
Tamil Nadu brought the Tamil Nadu Assured Pension Scheme into effect from January 1, 2026 for eligible State government employees, with coverage rules tied to entry into service and retirement dates under the Contributory Pension Scheme.
Tamil Nadu Assured Pension Scheme starts for State government employees from January 1, 2026
A What happened
Tamil Nadu brought the Tamil Nadu Assured Pension Scheme (TAPS) into effect from January 1, 2026. TAPS is mandatory for eligible State government employees who enter service from January 1, 2026, and it covers eligible employees governed by the Contributory Pension Scheme (CPS) who retire on or after January 1, 2026. Employees in service before January 1, 2026 who were covered under CPS get an option at retirement to choose TAPS benefits or benefits equivalent to what they would have received under CPS. The scheme provides an assured pension equal to 50% of last-drawn basic pay and dearness allowance, requires a 10% basic pay contribution from employees, and provides family pension, dearness allowance hikes, and gratuity up to ₹25 lakh under specified conditions.

Key insights

  • 1

    Coverage depends on service and retirement dates under CPS: Eligibility and choice under TAPS are tied to whether an employee entered service before or from January 1, 2026 and whether retirement occurs on or after January 1, 2026.

  • 2

    Operational rollout depends on rule notification and compliance steps: TAPS will be made operational only after rules are notified and statutory and accounting requirements are completed.

Takeaways

Tamil Nadu implemented TAPS from January 1, 2026 with mandatory coverage for new eligible entrants, coverage for eligible CPS retirees from that date, and an opt-in choice at retirement for pre-2026 CPS employees.

Topics

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