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The Government of Tamil Nadu has issued G.O.Ms.No.07 (Finance – Pension Department) dated 09 January 2026, introducing a new assured pension system for its employees called the Tamil Nadu Assured Pension Scheme (TAPS).
This decision aims to provide long-term pension security while balancing the State’s fiscal sustainability.
Tamil Nadu New Pension Scheme 2026 | TAPS G.O.Ms.No.07 Explained
Key Highlights
- G.O Number: G.O.Ms.No.07 Date: 09-01-2026
- Department: Finance (Pension) Department
- Scheme Name: Tamil Nadu Assured Pension Scheme (TAPS)
- Applicable To: Tamil Nadu State Government employees
Background: CPS and NPS
From 01.04.2003, Tamil Nadu implemented the Contributory Pension Scheme (CPS) for its employees.
From 01.01.2004, the Government of India introduced the National Pension System (NPS) for Central Government employees.
Based on representations from various employee associations, the Tamil Nadu Government decided to review existing pension structures.
Pension Review Committee
The Government constituted a committee to examine:
- Old Pension Scheme (OPS)
- Contributory Pension Scheme (CPS)
- Unified Pension alternatives
After detailed analysis and consultations with stakeholders, the committee submitted its report on 30.12.2025.
Introduction of Tamil Nadu Assured Pension Scheme (TAPS)
After examining the committee’s recommendations, the Government decided to introduce TAPS, ensuring assured pension benefits to employees while maintaining the State’s financial responsibility.
Major Features of TAPS
1. Employee Contribution
Employees shall contribute 10% of their monthly salary towards pension.
2. Government Responsibility
Any additional financial requirement to ensure assured pension will be fully borne by the Government of Tamil Nadu.
Family Pension Provisions
In the event of the death of a pensioner,
👉 Family pension equal to 60% of the last drawn pension shall be paid to eligible family members.
Dearness Allowance (DA)
Pensioners and family pensioners under TAPS will be eligible for Dearness Allowance increases on par with serving Government employees.
Gratuity Benefits
- Upon retirement or death while in service:
- Gratuity will be paid proportionate to the length of qualifying service.
- Maximum gratuity ceiling: ₹25 lakh.
Special Provision for CPS Retirees
Employees who joined under CPS and retired before the implementation of TAPS will be granted a special compassionate pension, proportionate to their length of service
Option at the Time of Retirement
- Employees initially covered under CPS and later brought under TAPS will be given an option at retirement to choose between:
- Benefits under TAPS, or
- Benefits equivalent to what they would have received under CPS.
Minimum Pension and Commutation
- Employees covered under TAPS shall be entitled to:
- A minimum assured pension (as prescribed), and
- Commutation of a portion of pension, subject to notified conditions.
Detailed Rules and Guidelines
The Government will issue separate notifications detailing:
- Eligibility conditions
- Operational guidelines
- Implementation procedures for TAPS
Who Will Benefit?
- Serving Government employees under CPS
- Retired CPS employees
- Family pensioners
TAPS ensures pension stability, assurance, and social security for Government employees and their families.
Conclusion:
The Tamil Nadu Assured Pension Scheme (TAPS) marks a significant reform in the State’s pension system. By assuring pension benefits and linking DA increases with serving employees, the Government has addressed long-standing concerns of CPS employees while safeguarding fiscal discipline.
Tamil Nadu Government introduced the Assured Pension Scheme (TAPS) through G.O.Ms.No.07 dated 09-01-2026. Check pension, family pension, gratuity, DA and CPS options.Tamil Nadu Pension Scheme 2026, TAPS Pension, G.O.Ms.No.07 Pension, CPS vs TAPS, New Pension Rules Tamil Nadu
Tamil Nadu New Pension Scheme 2026 | TAPS G.O.Ms.No.07 Explained Download Copy
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