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Are You Eligible For Tamil Nadu’s New Pension Scheme In 2026?

Pragya Pathak

Author

Updated: 06-01-2026 at 3:31 PM

Recently, the Chief Minister of the state of Tamil Nadu, Mr. M.K Stalin, announced the launch of a new pension scheme called the Tamil Nadu Assured Pension Scheme. The new pension scheme is almost the same as the Old Pension Scheme (OPS) and an improved version of the Unified Pension Scheme (UPS).

For the last 20 years, the people residing in the state of Tamil Nadu, particularly public sector workers, like teachers and govt employees, have been requesting and protesting regarding the absence of a sturdy pension scheme. Their demands were temporarily met with the replacement of the Old Pension Scheme with the Contributory Pension Scheme (CPS) in 2003, but pensioners were not satisfied with it. With the creation and introduction of the new pension scheme Tamil Nadu, the state govt is hoping to satisfy the demands of the public sector workers, once and for all.

Read the article to learn more about the new pension scheme Tamil Nadu, ranging from its meaning and specifics to information on the use of the Tamil Nadu assured pension scheme taps calculator.

Overview

The table below summarises some key details about the new govt scheme that one should know.

Name of the scheme	TAPS
Full form	Tamil Nadu assured pension scheme
Introduced by	State govt of Tamil Nadu
Objective	To provide public sector employees with a fixed pension equal to 50% of the last drawn basic pay, along with other provisions

What Is The Tamil Nadu Assured Pension Scheme?

The Chief Minister of the state of Tamil Nadu recently announced a new pension scheme called the Tamil Nadu Assured Pension Scheme, also known as the TAPS scheme. The primary objective of this new pension scheme is to provide public sector employees with a fixed pension equal to 50% of the last drawn basic pay. This new scheme is very much like the Old Pension Scheme and a form of financial security that people of the state of Tamil Nadu were desperately demanding and waiting for.

Under the new pension scheme tamilnadu, employees contribute a portion of their monthly salaries during service, and the government provides them with regular and updated Dearness Allowances (DA), provisions related to gratuity, and the family members of the pensioner.

Specifics Of The Tamil Nadu Assured Pension Scheme

Several components make the Taps scheme in Tamilnadu unique and secure. All the major components of the new govt pension scheme are described below in detail for one’s better understanding:

Under the new pension scheme tamilnadu, eligible public sector employees will receive a monthly pension equal to 50% of the last drawn basic pay after their retirement. This feature is one of the major features that make this scheme extremely similar to the Old Pension Scheme.
The employees under the Taps scheme in Tamilnadu will contribute 10% of their monthly basic pay towards their respective pension accounts, and the pending amount will be deposited by the state govt of Tamil Nadu to meet the total amount of the required pension amount. This feature ensures that the monetary responsibilities are shared so that no side gets burdened.
Eligible employees under the new taps scheme are entitled to receive Dearness Allowance twice a financial year to secure the pension against monetary fluctuations due to various reasons, like inflation. This protects the pensioners’ income against the changing dynamic market conditions.
In instances of unfortunate deaths of the pensioners registered under the new govt pension scheme, 60% of the monthly pension will be provided to the family members of the deceased pensioner in the name of ‘family pension’. The new pension scheme has provisions for gratuity as well, which can go up to a maximum of Rs. 25 lakh based on the years of service served by the pensioner.
Those employees who were a part of the Contributory Pension Scheme before the introduction of the new taps scheme and never received pensions will now receive a special compassionate pension. Please note that employees who retired before completing the minimum years of service will receive a minimum pension guarantee, as outlined in the new guidelines of the scheme.

Difference Between OPS & CPS

To understand the new taps scheme better, one needs to understand some related pension schemes as well, namely the Old Pension Scheme and the Contributory Pension Scheme. Both of them are explained below in brief points:

Old Pension Scheme (OPS): The Old Pension Scheme used to work in the early 2000s, wherein the government employees were entitled to a fixed pension amount, calculated as per their last drawn salary. The pension was also subjected to change as per inflation by giving dearness allowances (DA) and helping pensioners keep up with the changing times, also called the defined benefit model. However, the OPS was dependent on revenues generated from taxes to fund the pensioners’ accounts, which was a burden for the governmen,t which is the primary reason that led to the development of other models of the pension schemes.
Contributory Pension Scheme (CPS): The Contributory Pension Scheme was launched back in the year 2003 in several states, including Tamil Nadu. As per this model of pension scheme, both employer and employee contribute to the pensioners’ account, but the payout after retirement depends on the ever-changing market conditions, which makes this model unreliable and unpredictable. Many people under this pension scheme got below-par payouts and were left extremely dissatisfied.

Conclusion

The Tamil Nadu Assured Pension Scheme (TAPS scheme) is a significant step taken by the state govt of Tamil Nadu for the welfare of the public sector workers. The pension scheme resembles the model of the Old Pension Scheme with features, like contributions by both employees and the govt and provisions on Dearness Allowance, gratuity, etc.

This is not merely a pension scheme but a solution that has been brought after 20 years of protests and struggles of the people of the state. We still have to see the kind of impact this pension scheme makes on the lives of working and retired public sector workers of the state of Tamil Nadu.

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