5 months ago
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The Tamil Nadu Assured Pension Scheme (TAPS), which is virtually a replica of the Old Pension Scheme (OPS), is besides an improved mentation of the Unified Pension Scheme (UPS).
Except for the monthly idiosyncratic publication and pension revision astatine the clip of constitution of each wage commission, the projected pension strategy follows the wide guidelines of the OPS. One of the cardinal features of the OPS is death-cum-retirement gratuity (DCRG).
For instance, successful the lawsuit of decease successful harness of those whose magnitude of work is 20 years oregon more, gratuity not exceeding ₹25 lakh volition beryllium paid. This facet has been included successful the TAPS. As successful the lawsuit of the OPS, household pension volition beryllium equivalent to 60% of the pension. Inflation indexation volition besides beryllium made.
Pension nether the TAPS volition beryllium based connected 50% of the wage drawn successful the past period of work whereas it is 50% of the mean of the past 12 months’ basal wage nether the UPS.
On decease of the pensioner nether the UPS, lone the legally wedded spouse is eligible to person the household payout, whereas the household — meaning ineligible heirs nominated by the pensioner — volition beryllium covered successful the lawsuit of the TAPS. While successful the UPS, a minimum assured payout is made if superannuation is aft 10 years oregon much of qualifying service, nether the TAPS, it volition beryllium fixed careless of the magnitude of service.
Asked erstwhile the projected strategy volition travel into force, a elder authorities authoritative replied that ineligible formalities, including amendment to the pension rules, volition person to beryllium carried retired first.
All the existing employees nether the Contributory Pension Scheme (CPS), numbering astir 6.24 lakh, are expected to migrate to the TAPS, adjacent though they volition beryllium allowed to take their pension scheme. The authorities has decided to put pension funds with the Pension Fund Regulatory and Development Authority (PFRDA) alternatively of the Life Insurance Corporation (LIC), the authoritative observed.
Till now, the full accrued magnitude nether the CPS, which covers those who joined the authorities work connected oregon aft April 1, 2003, is invested successful the Superannuation Fund of the LIC. Hitherto, the State authorities has been getting flak from antithetic sections, including the Comptroller and Auditor General (CAG), for not utilizing the PFRDA to put funds, arsenic specified a determination would person yielded higher returns. A CAG study connected State finances for 2023-24, tabled successful the Assembly successful October 2025, stated: “Previously, the State invested DCPS [Defined Contributory Pension Scheme oregon CPS] accumulations successful some LIC and Treasury Bills, which yielded little involvement than the General Provident Fund rate. This contented was highlighted successful erstwhile SFAR [State Finances Audit Report] reports. Currently, the State is investing DCPS accumulations solely successful LIC, with involvement rates aligned with the General Provident Fund rate, presently acceptable astatine 7.1%.”
‘Viable model’
Another policymaker emphasises that capable precautions person been taken portion designing the caller pension scheme. Projections person been made regarding the maturation complaint of State Own Tax Revenue (SOTR) astatine slightest for the adjacent 15 years.
Despite the summation successful the worth of allocation each year, the proportionality of pension liability volition stabilise astir 21% to 22% of the SOTR.
As per the CAG study for 2023-24, the stock of pensions and different status benefits was 22.5%, arsenic pensions amounted to ₹37,696.81 crore and the SOTR stood astatine ₹1,67,279 crore. Only a “conservative” maturation complaint of 8% has been considered for the SOTR.
“This is wherefore we are rather assured that the pension model, worked retired by us, volition beryllium viable,” helium added.
