TAPS Pension Scheme: Tamil Nadu Unveils Major Welfare Initiative for State Employees

• Tamil Nadu Chief Minister MK Stalin launched the Tamil Nadu Assured Pension Scheme (TAPS), effective January 1, 2026.
• TAPS is mandatory for new government employees joining on or after January 1, 2026; existing CPS members can opt-in at retirement.
• Pension will be 50% of the last drawn salary (basic pay + DA); employees contribute 10% of monthly salary.
• Family pension is 60% of the last drawn pension; dearness allowance and up to Rs 25 lakh gratuity are included.
• Special compassionate pension for employees who joined after April 1, 2003, and served until December 31, 2025.

Why It Matters: Tamil Nadu's new TAPS scheme offers assured pension benefits, significantly changing the state's pension framework.