The middle path: On the Tamil Nadu Assured Pension Scheme

The DMK government in Tamil Nadu has introduced the Tamil Nadu Assured Pension Scheme (TAPS) to balance fiscal prudence with a key electoral promise. The new scheme blends aspects of the Old Pension Scheme (OPS) and the Unified Pension Scheme (UPS), offering 50% of the last drawn pay as pension, while retaining employee contributions. This decision comes ahead of the Assembly elections in April-May, amidst concerns about the state's debt levels and a projected slowdown in tax revenue growth. The scheme aims to address the needs of nearly two lakh employees under the OPS and six lakh under the CPS, but faces criticism from the opposition AIADMK for not fully restoring the OPS.