Tamil Nadu Announces New Assured Pension Scheme for Government Employees

The Tamil Nadu government has unveiled a new pension framework aimed at meeting a long-standing demand of government employees and teachers, promising retirement benefits aligned with the old pension structure, as per PTI reports. 

Key Features of the New Pension Scheme 

Chief Minister M K Stalin announced the Tamil Nadu Assured Pension Scheme, under which government employees will receive an assured pension equal to 50% of their last drawn salary.  

The state government will fully fund the pension requirements beyond the employees’ 10% contribution to the pension fund. Pensioners under the scheme will also be eligible for dearness allowance revisions every 6 months, in line with serving government employees.  

In the event of a pensioner’s death, 60% of the pension amount will be paid as family pension to the nominee. 

Death, Minimum and Special Pension Provisions 

The scheme provides for a death gratuity of up to ₹25 lakh, depending on the length of service, if an employee dies while in service or at the time of retirement.  

Employees who retire without completing the qualifying service period after the scheme comes into force will be entitled to a minimum pension.  

In addition, those who joined government service under the Contributory Pension Scheme and retired before the implementation of the new framework will receive a Special Compassionate Pension, as stated in the official release. 

Fiscal Impact and Stakeholder Response 

The Tamil Nadu government will make an additional provision of ₹13,000 crore to the pension fund, while the annual expenditure due to the scheme is estimated at around ₹11,000 crore, with contributions expected to rise each year based on salary levels.  

Employee body JACTO-GEO welcomed the move, with an office-bearer stating, “The new scheme fulfils our key demand and is in alignment with our expectations,” describing it as the end of a 23-year struggle. 

Read More: Tamil Nadu RERA Implements Three-Account Rule for Real Estate Projects from January 1, 2026! 

Conclusion 

With the launch of the Tamil Nadu Assured Pension Scheme, the state government has committed to long-term retirement security for employees and teachers, addressing a decades-old demand while taking 

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