The Tamil Nadu government has introduced the Tamil Nadu Assured Pension Scheme (TAPS) for its employees. Instead of bringing back the Old Pension Scheme (OPS), the DMK government has chosen a middle path. This scheme mixes features from OPS and the Unified Pension Scheme (UPS) used by central government staff. TAPS promises pensioners 50% of their last drawn salary. It keeps employees' contributions, as found in the Contributory Pension Scheme (CPS) and UPS. The scheme also offers death-cum-retirement gratuity, a benefit from the OPS. Nearly two lakh employees still follow the OPS, while about six lakh work under the CPS since 2003. These CPS employees had urged the government to restore OPS. The timing of the announcement is close to the April-May Assembly elections. Tamil Nadu’s debt stands at 26.1% of its Gross State Domestic Product, higher than the pre-pandemic 21.5%, but it is falling. The government must pay for both OPS retirees and TAPS contributors until 2033. On revenue, the state’s Own Tax Revenue grew only 3.94% in the first half of the current year, far below the projected 22.6%. Officials are cautious about GST changes starting September 2022 and their impact on finances. The DMK faces pressure to deliver election promises but remains cautious. The main issue with OPS is pension resets after each Pay Commission, which strains budgets. The main opposition AIADMK criticized DMK for not restoring OPS but also does not promise to bring it back if elected. Both parties seem aware of the financial risks involved and aim to avoid jeopardizing the state’s fiscal health.