The state government will incur an additional expenditure of ₹13,000 crore for the pension fund. Additionally, it will have to contribute about ₹11,000 crore every year as its annual contribution, which would increase further based on basic pay each year.
As per the announcement made by Chief Minister M K Stalin, under the new scheme the employees would get an assured pension equal to 50% of their last drawn basic pay.
Under the new scheme, employees will have to contribute 10 per cent of their basic pay, while the entire additional fund requirement for providing the assured pension would be borne by the state government.
For those receiving a 50 per cent assured pension, the Dearness allowance (DA) would be hiked twice a year, on par with the DA hikes provided to the government employees.
In case of death of the pensioner, 60 per cent of the pension that was being provided will be paid as family pension to the nominee.
At the time of retirement of the government employees or in the event of death during service, they will be provided with a gratuity not exceeding Rs 25 lakh as per tenure of their service.
Post implementation of the scheme, employees who retire without completing the qualifying service period required to receive pension will be provided with a minimum pension.
A special compassionate pension would be provided to employees who joined service under the Contributory Pension Scheme (CPS) and retired without receiving any pension during the interim period before the implementation of the TAPS.
