Tamil Nadu government fixes ₹10,000 interim monthly payout for retirees under TAPS regime

The Tamil Nadu government has said eligible retired government employees with a service of more than 10 years but less than 18 years would be sanctioned an interim monthly payout at a flat rate of ₹10,000 and applicable dearness relief under the Tamil Nadu Assured Pension (TAPS) regime.

The State government also said retired government employees with a service of 18 years and above would continue to be sanctioned the interim payout at 30% of their last-drawn monthly basic pay, or ₹10,000, whichever is higher, along with applicable dearness relief under the TAPS regime.

The State government’s decision to provide ₹10,000 as a flat rate of interim monthly payout under the TAPS regime came against the backdrop of concerns that the 30% payout could be higher than the proportionate admissible payout for those with less than 18 years of qualifying service.

In a letter to the Director, Treasuries and Accounts; N. Venkatesh, Secretary (Expenditure), said it had come to the notice of the State government that for eligible government servants retiring with a qualifying service of more than 10 years but less than 18 years, sanctioning an interim monthly payout of 30% of their last-drawn monthly basic pay would result in the interim payout being higher than the proportionate admissible payout based on the length of their service.

If the interim payout was higher than the eligible admissible payout, it would lead to the recovery of the excess amount, causing unnecessary hardship to retired government servants at a later stage, the letter said. Further, the net qualifying service under TAPS was yet to be notified, and hence, it could not be calculated at present to determine the exact admissible payout. After notification of the relevant rules and procedures, the actual admissible payout will be worked out for each person based on their eligible qualifying service, and the difference will be paid as arrears, the letter said.

If the interim payout had been sanctioned at 30% of the last-drawn monthly basic pay for any person with less than 18 years of qualifying service, the excess amount paid, including dearness relief, would be recovered in 10 equal instalments from the interim payout or interim family payout from September, the letter added.