The Tamil Nadu Assured Pension Scheme (TAPS) seeks to achieve inter-generational equity, according to a perusal of features of the scheme.
In respect of the Old Pension Scheme, where the government absorbs the entire burden of pension which, inherently, allows a considerable portion of the burden - if not substantial - to be passed on to future generations as there is no mandatory contribution from the employees. But, under the TAPS, a government employee will bear a portion of the pension that they will get on retirement and after.
The principle of contribution, as a component of any pension scheme, is nothing new, as this element is there in the Contributory Pension Scheme (CPS), which covers nearly six lakh employees of the State government, as also in the National Pension System (NPS) and the Unified Pension Scheme (UPS).
But, beneficiaries of the CPS are given a one-time settlement and it is up to them to invest their money for annuity schemes, offered by insurance companies. Technically, not every CPS beneficiary will get a pension. But, the key feature of the TAPS is the arrangement for the payment of pension. Only when operational guidelines are issued, a complete picture will emerge with finer details of the scheme.
