After a long wait, a major relief has been announced for government employees and teachers in Tamil Nadu. The state’s DMK government has decided to implement a new pension system aimed at strengthening financial security after retirement. This scheme, named the “Tamil Nadu Assured Pension Scheme,” or TAPS, was announced by Chief Minister M.K. Stalin. This decision brings a ray of hope to thousands of employees who have been demanding benefits similar to the old pension system for the past two decades.

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The TAPS scheme is designed to incorporate the key benefits of the old pension system into the new structure. Under this scheme, retiring employees will receive half of their last basic salary as pension. This pension will be protected from the effects of inflation, as the dearness allowance will be increased twice a year, just like the benefits available to serving employees.

Family protection is a key aspect of the new pension scheme. In the event of a pensioner’s death, a family pension provision has been made to protect their family from financial hardship. Under this scheme, a nominated family member will receive 60 percent of the fixed pension, ensuring a regular income for the family.

TAPS also ensures the benefit of gratuity upon retirement. The maximum limit is set at ₹25 lakh, ensuring long-serving employees receive a respectable amount. Furthermore, a minimum pension provision has been made for employees who, for some reason, have not met the minimum pension eligibility, ensuring that no employee is left completely helpless after retirement.

The state government has also included employees who have already retired under the contribution-based pension system in this decision. In such cases, a provision for compassionate pension has been made to maintain a balance between the old and new systems.

The Tamil Nadu government will have to spend approximately ₹13,000 crore to implement this scheme. Additionally, the state will incur an additional financial burden of approximately ₹11,000 crore annually. The government believes this expenditure is a necessary investment to secure the future of employees, and this amount will increase over time in line with pay revisions.

A major reason behind this decision was the long-standing demand of employees’ and teachers’ organizations. There were frequent protests, demonstrations, and strike threats demanding the reinstatement of the OPS. In this environment, and keeping in mind the upcoming elections, the DMK government has taken this decisive step. Chief Minister Stalin stated that government employees and teachers are the backbone of delivering the state’s welfare schemes to the common people, and therefore, it is the government’s responsibility to ensure their social and economic security.

The announcement of the scheme has received mixed but positive responses from employee organizations. Many union leaders have stated that they will study the detailed guidelines of the scheme, but this is being considered a positive beginning. Employees believe that this will end the years-long confusion regarding pensions.

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It’s worth noting that the Tamil Nadu government has already expanded several benefits for employees. Schemes such as dearness allowance, housing loans, education and marriage advances, and health insurance are already in place. With the addition of TAPS, post-retirement security has now been added to this list, providing employees with complete financial protection.