Tamil Nadu government outlines Tamil Nadu Assured Pension Scheme

The Hindu
The Hindu
7h ago
A senior government official says legal formalities, including amendment to the pension rules, will have to be carried out first for the proposed scheme to come into force.
Tamil Nadu government outlines Tamil Nadu Assured Pension Scheme
A What happened
The Tamil Nadu Assured Pension Scheme (TAPS) is described as virtually a replica of the Old Pension Scheme (OPS) and an improved version of the Unified Pension Scheme (UPS). The article states that pension under TAPS will be based on 50% of the pay drawn in the last month of service. A senior government official says legal formalities, including amendment to the pension rules, will have to be carried out first for the proposed scheme to come into force. The article says the government has decided to invest pension funds with the Pension Fund Regulatory and Development Authority (PFRDA) instead of the Life Insurance Corporation (LIC).
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Key insights

  • 1

    CAG report cites LIC investment: A CAG report on State finances for 2023-24 states the State is investing DCPS accumulations solely in LIC, with interest rates aligned with the General Provident Fund rate, currently set at 7.1%.

  • 2

    Pension liability projection stated: Another policymaker says the proportion of pension liability will stabilise around 21% to 22% of the State Own Tax Revenue (SOTR).

  • 3

    CAG figures for 2023-24 cited: The article cites a CAG report for 2023-24 stating pensions amounted to ₹37,696.81 crore and the SOTR stood at ₹1,67,279 crore.

Takeaways

The article says TAPS has been outlined, legal formalities are pending for it to come into force, and the government has decided to invest pension funds with PFRDA instead of LIC.

Topics

Business & Markets Economy World & Politics Policy & Regulation Governance

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