Background of the Committee
Tamil Nadu Pension Committee Report: The Tamil Nadu government constituted a three-member Pension Committee to review the existing pension frameworks.The comm ittee submitted its final report in Chennai, marking a key development in the state’s pension policy debate.
The committee was headed by Gagandeep Singh Bedi, with K.R. Shanmugam and Pratik Tayal as members. Its mandate was to study and compare OPS, CPS, and UPS in terms of sustainability and employee welfare.
Static GK fact: Pension is a post-retirement social security measure funded either fully by the state or through joint contributions.
Old Pension Scheme Overview
The Old Pension Scheme (OPS) applies to employees who joined government service before April 1, 2003. Under OPS, pensions are paid directly from the state’s current revenues, without any employee contribution.
OPS currently benefits around 1.98 lakh serving employees. It also supports nearly 6.94 lakh pensioners and family pensioners, making it a major fiscal responsibility.
Static GK Tip: OPS pensions are generally linked to last drawn salary, unlike market-linked schemes.
Contributory Pension Scheme Structure
The Contributory Pension Scheme (CPS) applies to employees recruited after April 1, 2003. Under CPS, employees contribute 10% of their salary, matched by an equal government contribution.
CPS covers around 6.24 lakh individuals, including employees of local bodies. The number of pensioners under CPS is currently about 44,000, reflecting its relatively recent introduction.
Static GK fact: CPS follows a defined contribution model, shifting risk from government to individuals.
Financial Accumulation Under CPS
Under CPS, total contributions with interest have reached approximately ₹84,507 crore up to March 2025.
These funds are invested, and pension payouts depend on accumulated corpus and returns.
This structure reduces immediate fiscal pressure on the state. However, it introduces market risk for employees compared to OPS.
Unified Pension Scheme Assessment
The committee also examined the Unified Pension Scheme (UPS) introduced for Central government employees from April 1, 2025. UPS aims to balance assured pension benefits with contributory discipline.
The scheme seeks to address dissatisfaction with CPS while avoiding the fiscal stress of OPS. Its relevance for Tamil Nadu lies in offering a middle-path pension model.
Static GK Tip: UPS is designed as a hybrid pension framework combining predictability and sustainability.
Fiscal Impact of Pension Spending
Pension-related expenditure in 2024–25 stood at about ₹42,509 crore. This constituted nearly 14.2% of Tamil Nadu’s total revenue receipts, highlighting its fiscal weight.
Rising pension commitments reduce funds available for developmental spending. Hence, pension reforms are closely linked with state financial health.
Static Usthadian Current Affairs Table
Tamil Nadu Pension Committee Report:
| Topic | Detail |
| Pension Committee | Three-member committee submitted final report in Chennai |
| Committee Head | Gagandeep Singh Bedi |
| OPS Coverage | Employees before April 1, 2003 |
| OPS Beneficiaries | 1.98 lakh employees and 6.94 lakh pensioners |
| CPS Coverage | Recruits after April 1, 2003 |
| CPS Contribution | 10% employee plus equal government share |
| CPS Corpus | ₹84,507 crore accumulated till March 2025 |
| UPS Reference | Implemented for Central employees from April 1, 2025 |
| Pension Spending | ₹42,509 crore in 2024–25 |
| Fiscal Share | 14.2% of total revenue receipts |
