Tamil Nadu’s new pension scheme to come into effect from Jan 1, 2026: Govt order

The detailed rules, eligibility conditions, operational guidelines and implementation procedures for TAPS shall be notified separately by the Government, the order said. 

The Tamil Nadu Finance Department on Friday issued an order for the implementation of its new pension scheme, the Tamil Nadu Assured Pension Scheme (TAPS).  

“The Tamil Nadu Assured Pension Scheme shall come into effect from 01. 01. 2026, and will be operational after notification of the rules, completion of necessary statutory and accounting requirements,” the order said. 

The detailed rules, eligibility conditions, operational guidelines and implementation procedures for TAPS shall be notified separately by the Government, it added. 

TAPS will be mandatory for all eligible Government employees who enter the service from January 1, 2026. 

All eligible Government employees who are governed by the current Contributory Pension Scheme (CPS) and who retire on or after January 1, 2026, shall be covered under TAPS, subject to the rules to be notified. 

Similarly, all Government employees who were in service before January 1, 2026, and were covered under CPS will be provided an option at the time of retirement to choose between the benefits under TAPS or those equivalent to what they would have received under CPS. 

Tamil Nadu CM MK Stalin announced the implementation of TAPS on January 3 under which State government employees will be provided with an assured pension equal to 50 per cent of their last-drawn basic pay and dearness allowance. However, they will be contributing 10 per cent of their basic pay to the pension fund under TAPS. The additional fund requirement needed to provide the assured pension will be borne by the State government.

Published on January 10, 2026