New Assured Pension Scheme for Government Employees
Sweets were also distributed at the Secretariat as the union office-bearers personally expressed their gratitude to the Chief Minister and others.
Chennai: Putting an end to the over two decades long pique of State government employees and teachers over the cancellation of their pension in 2003 and acceding to their long-pending demand for its restoration, Chief Minister M K Stalin announced a new pension scheme that assured 50 percent of the last drawn salary as pension to a wide range of government staff and teachers leading to the unions affiliated to the JACTTO-GEO calling off their proposed strike from January 6.
The government had agreed to fully fund the Tamil Nadu Assured Pension Scheme (TAPS) that would require an additional one time contribution of Rs 13,000 crore to the pension fund and provide around Rs 11,000 crore annually, which would increase based on the expenditure since the scheme promised periodic dearness allowance hikes, family pension and gratuity benefits.
With JACTTO-GEO and a host of other unions and federations of government staff welcoming the new scheme, celebrations broke out across the State with the distribution of sweets at government office premises.
Sweets were also distributed at the Secretariat as the union office-bearers personally expressed their gratitude to the Chief Minister and others. The decision to implement TAPS was taken after Stalin held a series of meetings with top officials and his ministerial colleagues, Finance Minister Thangam Thenarasu, PWD Minister E V Velu and School Education Minister Anbil Mahesh Poyyamozhi.
The employees and teachers’ unions, raising concerns over the uncertainty of the Contributory Pension Scheme that did not guarantee post-retirement income and financial security, had been fighting for the restoration of the Old Pension Scheme and intensified their demand after the DMK came to power, citing a promise in its manifesto for the 2021 Assembly elections.
Ahead of Saturday’s announcement, the government, acknowledging the concern of its employees, constituted a committee under Additional Chief Secretary K Gangandeep Singh Bedi to suggest a viable alternative.
Based on the committee’s recommendation, the government came up with TAPS despite fiscal pressures exerted by reduced Central tax devolution, GST related revenue constraints and an increase in expenses for welfare schemes.
Beneficiaries of TAPS will contribute 10 percent of their salary while in service towards the fund and the government would bear the rest of the financial burden for the scheme that provides for DA revisions every six months on par with employees in service.
In the event of the pensioner’s passing, 60 percent of the pension would be paid as family pension to eligible descendants and a gratuity of up to Rs 25 lakh will be paid based on the duration of service both during retirement and in case of death in harness. Those who joined service under the Contributory Pension Scheme and retired without pension before TAPS will be eligible for a special compassionate pension and those retiring without completing qualifying service will be eligible for a minimum pension.
