NMOPS-TN Demands Tamil Nadu Restore Old Pension Scheme, Scrap New Scheme

The National Movement for Old Pension Scheme–Tamil Nadu (NMOPS-TN) has urged the State government to abolish the Tamil Nadu Assured Pension Scheme (TAPS) and implement the Old Pension Scheme (OPS) for government employees and teachers. The organisation said this would be in line with the election promise of the Tamilaga Vettri Kazhagam (TVK).

Addressing presspersons here on Sunday, members of the organisation said the introduction of TAPS is contrary to the commitment made by the previous government during the 2021 Assembly election to address the concerns of employees covered under the Contributory Pension Scheme (CPS). The OPS provides a defined benefit based on the last drawn salary, whereas the CPS is a defined contribution scheme where both employees and employers contribute a percentage of salary. TAPS was introduced as a replacement for CPS, but the organisation argues it does not offer the same security as OPS.

NMOPS-TN claimed that nearly 50,000 government employees who retired under the CPS before January 1, 2026, are yet to receive a monthly pension. It also said that contributions from around 6.5 lakh serving employees and teachers, together with the government's share, have accumulated to nearly ₹1 lakh crore, reportedly invested through LIC. The organisation said these funds could be redirected to finance the restoration of OPS.

Referring to the 2026–27 Interim Budget, NMOPS-TN noted that an additional ₹11,000 crore was allocated for TAPS towards the Pension Commission. However, the revised budget subsequently reduced the overall allocation for pension and other retirement benefits to continue administering pensions directly rather than transferring their management to the Pension Commission. According to the organisation, this demonstrates the government's capacity to pay pensions directly.

The organisation has called on the government to utilise the ₹7,500 crore contributed annually under the CPS to finance the implementation of the Old Pension Scheme. It appealed to the Chief Minister to immediately announce a monthly pension for the nearly 50,000 employees and teachers who retired under the CPS before January 1, 2026.

The demand for OPS restoration has been a recurring issue among employee unions across several states, with arguments that the CPS exposes retirees to market risks. In Tamil Nadu, the issue gained political traction after TVK's election promise, which NMOPS-TN is now citing. The State government has not yet issued an official response to the organisation's demands.