DA Hike: Although the central government has not reinstated the old pension scheme, the Tamil Nadu government has surprised everyone by taking a historic decision for some of its employees. The Tamil Nadu government has given good news to government employees and teachers. The pension of state employees will now be completely secure, ensuring that they will not face any problems.
The pension will increase in line with inflation, and they will also receive the benefit of family security. The DMK government has surprised everyone by deciding to implement a new pension scheme. It is called the Tamil Nadu Guaranteed Pension Scheme. It was announced by Chief Minister M.K. Stalin. This move by the government could prove to be very effective.
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Government Employees and Teachers Will Receive Pensions
Following the Tamil Nadu government’s announcement, government employees and teachers will be entitled to a pension after retirement. They will receive 50 per cent of their last drawn basic salary as a pension. This facility is similar to the Old Pension Scheme (OPS). The Dearness Allowance (DA) on the pension will increase twice a year, just like the benefit received by current employees.
If a pensioner dies during the pension period, 60 per cent of the pension will be provided as a family pension. Gratuity will also be available upon retirement, with a maximum limit of Rs. 25 lakh.
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If an employee has not completed the required service to be eligible for a pension according to the rules, they will still receive the benefit of a minimum pension. There is also a provision to provide a compassionate pension to employees who retired after joining the Contributory Pension Scheme (CPS).
How the Expenses Will Be Managed
After the implementation of the Tamil Nadu Guaranteed Pension Scheme, the burden on the government treasury will increase. The state government will need to spend approximately Rs. 13,000 crore as a one-time expense. An additional Rs. 11,000 crore will be needed annually. This amount will also increase annually with employee salary increments.
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Why Was This Decision Taken?
It is worth noting that employee unions were continuously demanding the reinstatement of the old pension scheme. Government employee organisations and education unions were also protesting and threatening to go on strike. Amidst this pressure, the DMK government has taken this major decision before the upcoming assembly elections, providing significant relief to the employees. This is being considered a major decision by the Tamil Nadu government.