Tamil Nadu has introduced the Tamil Nadu Assured Pension Scheme (TAPS), designed as an improved version of the Old Pension Scheme (OPS) and the Unified Pension Scheme (UPS). TAPS follows OPS guidelines, including the death-cum-retirement gratuity (DCRG), where employees with 20+ years of service receive gratuity up to ₹25 lakh if they die in service. Family pension will be 60% of the pension, with added inflation indexation. Under TAPS, pension is based on 50% of the last drawn pay, unlike UPS which calculates pension on the average of the last 12 months’ pay. Unlike UPS, TAPS allows all nominated legal heirs to receive family pensions after the pensioner's death, not just the legally wedded spouse. Minimum pension payouts under TAPS will apply irrespective of the length of service. Currently, about 6.24 lakh government employees enrolled in the Contributory Pension Scheme (CPS) will have the option to migrate to TAPS. Pension funds will now be invested with the Pension Fund Regulatory and Development Authority (PFRDA), replacing the Life Insurance Corporation (LIC). Previously, pension funds were invested only in LIC’s Superannuation Fund, which yielded lower returns than PFRDA could provide. The shift aims for higher pension fund returns, addressing concerns raised by the Comptroller and Auditor General (CAG). A CAG report for 2023-24 noted pension payouts were 22.5% of Tamil Nadu's State Own Tax Revenue (SOTR). Policymakers are confident the new scheme is financially viable with pension liabilities stabilizing around 21-22% of SOTR, even with conservative 8% revenue growth projections over the next 15 years. A senior official said that formal legal changes are pending before TAPS officially starts. The government believes TAPS will provide a more secure and fair pension plan for its employees.