Tamil Nadu Assured Pension Scheme (TAPS) Comes into Effect for State Government Employees
The Tamil Nadu government has implemented the Tamil Nadu Assured Pension Scheme (TAPS) effective January 1, 2026. This scheme targets state government employees who entered service on or after January 1, 2003, and were previously under the Contributory Pension Scheme (CPS). Under TAPS, retirees are guaranteed a pension equal to 50% of their last-drawn basic pay and dearness allowance. Employees contribute 10% of their basic pay, while the government covers the remaining funding. The scheme also includes provisions for family pensions (60% of the pensioner's amount) and gratuity up to ₹25 lakh based on service tenure.
Key Points
- TAPS provides an assured pension of 50% of the last-drawn basic pay plus dearness allowance for eligible retirees.
- It is mandatory for employees entering service from January 1, 2026, while existing CPS employees have an option to switch at retirement.
- Employees contribute 10% of their basic pay to the pension fund, with the government bearing the additional fund requirements.
- The scheme includes a family pension provision where nominees receive 60% of the pension in the event of the pensioner's death.
- Retirees are entitled to a gratuity not exceeding ₹25 lakh based on their tenure of service under the TAPS.
Exam Facts
- Effective date: January 1, 2026.
- Pension amount: 50% of last-drawn basic pay and dearness allowance.
- Maximum gratuity: ₹25 lakh.
- Family pension: 60% of the original pension amount.
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