FINANCE DEPARTMENT

DEMAND No.50

Pension and Other

Retirement Benefits

POLICY NOTE
2024-2025

THANGAM THENARASU
Minister for Finance and
Human Resources Management

©
Government of Tamil Nadu
2024
 DEMAND No.50

PENSION AND OTHER RETIREMENT BENEFITS

POLICY NOTE FOR 2024-2025

The employees in the State are covered under two

pension schemes viz., Defined Benefit Pension Scheme (Old
Pension Scheme) and Contributory Pension Scheme. The
employees who have been appointed prior to 01-04-2003 are
covered under Defined Benefit Pension Scheme and those
appointed on or after 01-04-2003 are covered under
Contributory Pension Scheme. Under Defined Benefit
Pension Scheme, 6,97,236 Pensioners and Family
Pensioners are receiving pension and family pension. As on
31-05-2024, total number of 6,14,175 employees are
serving under Contributory Pension Scheme.

I. CONTRIBUTORY PENSION SCHEME

1. Introduction

(i) Based on the recommendations of the Fifth

Tamil Nadu Pay Commission, Central Pay scales were
extended to the State Government employees with effect from
01-06-1988. Consequently, the pension of the retired

2
employees were revised based on the revised pay scales
applicable to the posts held by the employees concerned. The
fiscal burden became unsustainable to the State Exchequer
due to increasing salary and pension expenditure and this
constrained the resources available for public welfare and
infrastructure expenditure.

(ii) A High Level Expert Group (HLEG) was set up by

the Union Government on 26-06-2001 under the
Chairmanship of [Link], Chief Secretary
(Retired), Government of Karnataka to make
recommendations for restructuring the pension scheme. The
High Level Expert Group in its report submitted in
February 2002, suggested for a new hybrid scheme that
combines contributions from employees and the Government
on a matching basis, on one hand, while committing to the
employees a defined benefit as pension. The objective of the
Union Government was to design a scheme for new entrants
to Government service where the contribution is defined, with
the infrastructure being created in course of time capable of
serving other groups like State Government employees,
middle class self-employed people and even those in the
lower income bracket in the unorganized sector.

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 (iii) As a follow up of the Union Government’s initiative
on pension reform, an announcement was made in the
Tamil Nadu Budget for 2002-2003 as follows:

“Tamil Nadu has the highest pension-related

commitments when compared to other States in the
Country. It is also one of the fastest growing
components of the total revenue expenditure. It has
already been announced that all employees recruited
from December 1, 2001, will be governed by a new
contributory pension scheme similar to the one being
formulated by the Union Government.”

(iv) Based on the Budget announcement, the

Contributory Pension Scheme (CPS) was introduced for the
employees of the State Government appointed on or after
01-04-2003. Necessary amendments have also been issued
to the Tamil Nadu Pension Rules, 1978 accordingly.

2. Methodology of Contributory Pension Scheme:

(i) In respect of employees under the Contributory

Pension Scheme, a subscription at the rate of 10% of basic
pay plus Dearness Allowance is being recovered from the
employees with an equal matching contribution from
Government.

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 (ii) 6,14,175 employees including employees of Local
Bodies have been enrolled under this scheme as on
31-05-2024 and a sum of Rs.73,974.64 Crore has been
accumulated upto 30-04-2024 as Employee / Employer
contribution with interest and the same is invested with the
Life Insurance Corporation of India (LIC).

3. Interest
Interest is currently being sanctioned towards the
Contributory Pension Scheme accumulation at the same
quarterly rate as applicable to General Provident Fund
accounts. At present, the rate of interest sanctioned for
GPF for the period from 01-04-2024 to 30-06-2024 is
7.1 percent.

4. Investments made from Contributory Pension Scheme

accumulations

The entire accrued amount under Contributory

Pension Scheme have been invested in the Life Insurance
Corporation Superannuation Fund.

5. Settlement so far made to retirees

In the absence of framing rules under Contributory

Pension Scheme, orders have been issued to settle the
accumulated amounts inclusive of Employee and

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Government contribution along with interest in one
lumpsum. The Commissioner of Treasuries and Accounts has
received final settlement applications from 38,129
subscribers who have retired / resigned/died/terminated
from service requesting final settlement in the Contributory
Pension Scheme upto 31-05-2024. Out of which, final
settlement clearance have been made to 37,095 employees
for a sum of Rs.3,143.61 Crore. During the year 2023-24,
7,738 employees have retired and settlements to the tune of
Rs.1158.28 Crore have been made.

6. Contributory Pension Scheme to Local Bodies

The Commissioner of Treasuries and Accounts has

been designated as the State Nodal Officer for implementing
the Contributory Pension Scheme for the employees of
Municipal Corporations, Municipalities, Town Panchayats
and Panchayat Unions. A software application for Local
Bodies has been developed and the related data are being
maintained.

7. National Pension System (NPS) for All India Service

Officers (AIS) in Government of Tamil Nadu

The Government of Tamil Nadu signed an agreement

on 28-06-2017 appointing National Securities Depository
Limited (NSDL) as Central Record Keeping Agency (CRA) for

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the National Pension System (NPS) and the NPS Trust of the
Pension Fund Regulatory and Development Authority
(PFRDA) as the Trustee Bank, Pension Fund Manager (PFM)
and Annuity Service Provider (ASP) for operationalizing the
National Pension System (NPS) for All India Service (AIS)
Officers of Tamil Nadu cadre. A sum of Rs.59.26 Crore has
been transferred to National Securities Depositary Limited
(NSDL) as subscription amount and Government
contribution for All India Service Officers up to 31-05-2024.

8. Constitution of Expert Committee

An Expert Committee was constituted by the

Government of Tamil Nadu in the year 2016 to examine the
feasibility of implementing the demand of various
Government employees/Associations for continuing the
defined benefit Pension Scheme and make recommendation
on the possible options to Government for appropriate
decision. The said Committee has submitted its report to
Government and the same is under consideration by the
Government.

II. GOVERNMENT DATA CENTRE

The Government has established the Central Budget

Data Processing Centre in 1971. For the Management
Information System (MIS) for Government a full-fledged

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Government Data Centre was established in 1972. For
administrative convenience both the above centres were
merged and the Government Data Centre (GDC) was
established in 1975.

The Government Data Centre deals with the following

functions :

i) Contributory Pension Scheme (CPS) for Government

employees

ii) Contributory Pension Scheme for Employees of

Local Bodies

iii) GPF Scheme for the employees of Puratchi

Thalaivar MGR Nutritious Meal Programme (NMP) and
Integrated Child Development Services (ICDS)

iv) Direct Benefit Transfer of Funds to the Bank

Accounts of Farmers supplying Sugarcane to Sugar Mills

1) Government Data Centre has been maintaining

Contributory Pension Scheme accounts of the Panchayat
Union Schools, Aided Educational Institutions, Municipal
Schools and Local Body Employees as per [Link].201,
Finance (Pension) Department, dated 21-05-2009.

In Government Order No.463, Finance (PGC)

Department, dated 27-12-2013, the Government have revised
the order of maintaining the accounts of Contributory

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Pension Scheme (CPS) of Government Employees previously
maintained in Accountant General’s Office and transferred all
the CPS related works of Government Employees to
Government Data Centre. After transferring of all CPS works
to this office, the CPS index numbers to all the Government
employees and Teachers and the non-provincialised
employees of Local Bodies in the time scale are being allotted
and the accounts are maintained in Government Data
Centre.

The details of Contributory Pension Scheme (CPS)

Subscribers as on 31-05-2024 is as follows:

Sl. CPS Subscribers as on

Type
No. 31-05-2024
Government employees 4,97,904
1
Aided Schools/Colleges 46,059
2
Panchayat Union Schools 38,822
3
Municipal Schools 1,803
4
Local Body Employees 29,587
5
Total 6,14,175

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 CPS Index Numbers allotted up to 31-05-2024

Issue of Final Account Slip

The Final Account Slips for 37,140 retired / resigned /

deceased employees have been issued by Government Data
Centre.

2) Local Body Employees - Contributory Pension Scheme

The number of non-provincialised employees working

in Local Bodies under the Contributory Pension Scheme is
29,587. Based on the online Data Entry of subscription,
Matching Contributions by Local Bodies are being audited
and authorized for settlement by the Local Fund Audit
Department.

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3) General Provident Fund Scheme for the Employees of
Puratchi Thalaivar MGR Nutritious Meal Programme
(NMP) and Integrated Child Development Services (ICDS)

The Government, in [Link].108, Social Welfare

and Nutritious Meal Programme Department, dated
19-04-2010 has entrusted the work of maintaining the
General Provident Fund Account for the Puratchi Thalaivar
MGR Nutritious Meal Programme (NMP) and Integrated Child
Development Services (ICDS) Scheme Employees to the
Government Data Centre. The number of subscribers
enrolled in this Scheme is 2,12,773 as on 31-05-2024.

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 In [Link].53, Social Welfare and Nutritious Meal
Programme Department, Dated 20-07-2015, guidelines were
issued for this Scheme accordingly, the recovery under
General Provident Fund is being made from the Nutritious
Meal Programme and Integrated Child Development Services
employees since August 2015. Account slips for the
employees of Nutritious Meal Programme and Integrated
Child Development Services have been hosted in the web site.

Temporary Advance / 90% Part Final withdrawal to

Nutritious Meal Programme and Integrated Child
Development Services Employees

As per the Government Letter No.9831/SW 4-2/

2020-3, dated 18-06-2021, Temporary Advance can be
applied by the NMP / ICDS employees who have completed 5
years of service and 90% of Part Final Withdrawal can be
applied before one year of retirement by the concerned
employee. Balance 10% can be sanctioned by the Drawing
and Disbursing Officer (DDO) only after obtaining the final
authorization from Government Data Centre.

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Final Settlement Work

Upto 31-05-2024 total number of 28,461 GPF Final

Settlement Authorisation orders for the employees of this
scheme were issued by the Government Data Centre for a
total amount of Rs.138.61 Crore.

4. Direct Benefit Transfer of Funds (DBT) to the Bank

Accounts of farmers supplying sugarcane to Sugar Mills.

The Government introduced the Direct Benefit

Transfer Scheme to the sugarcane growers for the payment of
incentive through Electronic Clearing Services from
2017-2018 crushing season.

13
 In this scheme the payment of incentive to the farmers
supplying sugarcane to Sugar Mills are transferred through
Direct Benefit Transfer of funds to the Bank Accounts of the
farmers.
No. of Farmers

14
Details of Payments made to farmers through Direct
Benefit Transfer of Funds

The Government Data Centre has successfully doing

the above work from 2018 onwards.

III. DEFINED BENEFIT PENSION SCHEME (OLD

PENSION SCHEME):

The Defined Benefit Pension Scheme (Old Pension

Scheme) covers all employees who have been appointed prior
to 01-04-2003. As on 31-05-2024, 2,29,525 employees are
covered under this Scheme. In 2023-2024, 23,792
pensioners have retired and expenditure to the tune of

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Rs.7,256.23 Crore have been incurred towards pensionary
benefits. In addition, 6,97,236 Pensioners and Family
Pensioners are receiving pension and family pension under
this Scheme. During 2023-2024, 11,631 existing pensioners
have been converted into family pensioners due to death of
the pensioners and a sum of Rs.1002.55 Crore has been
incurred as expenditure. Demand No.50 provides for a total
expenditure of Rs.42,509.25 Crore towards pension and
other pensionary benefits for the financial year 2024-2025.

The Expenditure on Pension and Retirement Benefits

over the past years is given below:

The substantial increase in Pension expenditure is due to the

increase in retirement age of Government Employees from
58 to 59 years in 2020 and 59 to 60 years in 2021.

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The details of Service (Civil) Pensioners as on 31-05-2024
is given below:

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The details of Family Pensioners as on 31-05-2024 is
given below:

25,143

78

3,860
2,16,674

State Civil Family Pensioners (Includes [Link], Govt.

School Teachers, Govt. College Professors)
Aided School Teacher / College Professor Family Pensioners

High Court Judges Family Pensioners

Other Category Family Pensioner (Village Office Assistant

Family Pensioners / Ex-VAO Family Pensioners)

Pension

(i) A minimum qualifying service of 10 completed

years is necessary to become eligible for Pension. The
minimum qualifying service of 30 years is required to become
eligible for full Pension. Further, Pension is being determined
based on 50% of pay last drawn at the time of retirement

18
or 50% of average emoluments drawn during the last
10 months of service rendered whichever is higher.

(ii) Minimum pension of Rs.7,850/- per month

has been fixed with effect from 01-10-2017.

Additional Pension / Additional Family Pension

The Pensioners / Family Pensioners who have

completed 80 years of age i.e., at the commencement of age
of 81 years are eligible for Additional Pension / Additional
Family Pension. The total number of Pensioners/ Family
Pensioners drawing Additional Pension/ Additional Family
Pension as on 31-05-2024 is 93,621.

Additional Pension /Additional Family Pension being

drawn (Age wise)

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Pension to Staff of Aided Educational Institutions
(Schools and Colleges)

The staff of aided educational institutions are allowed

to avail the same pensionary benefits such as minimum
pension of Rs.7,850/- per month and other pensionary
benefits as applicable to the State Government employees.

Retirement Benefits for Employees both under Defined

Benefit Pension Scheme and Contributory Pension
Scheme

Encashment of Earned Leave, Encashment of

Unearned Leave on Private Affairs and Transfer Travelling
Allowance are permitted to their native place or to any other
place where an employee wishes to settle down after
retirement.

Gratuity under Defined Benefit Pension Scheme

(i) Service Gratuity

Service Gratuity is admissible for those who have put

in less than 10 completed years of qualifying service. This is
a lumpsum payment for the service rendered in addition to
the Retirement Gratuity admissible.

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(ii) Death Gratuity

In the event of death in harness, Death Gratuity is

admissible at the following rates with effect from
01-10-2017:-

[Link]. Length of Service Rate of Gratuity

1 Less than one year Two times of monthly

emoluments

2 One year or more but Six times of monthly

less than five years emoluments

3 Five years or more Twelve times of

but less than eleven monthly emoluments
years

4 Eleven years or more Fifteen times of monthly

but less than twenty emoluments
years

5 Twenty years or more Half month’s emoluments for

every completed six monthly
period of qualifying service
subject to a maximum of 33
times of monthly emoluments
provided that the amount of
Death Gratuity in no case
exceeds Rs.20 lakh.

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(iii) Retirement Gratuity

A Government servant who has completed 5 years of

qualifying service and above is granted Retirement Gratuity
on his/her retirement. In respect of employees retired on or
after 01-04-1998, gratuity is calculated based on basic pay
and Dearness Allowance last drawn. The ceiling limit of
Death Gratuity / Retirement Gratuity is Rs.20 lakhs with
effect from 01-01-2016.

Family Pension under Defined Benefit Pension Scheme

(i) Family pension is payable to a family of a

Government servant or a retired Government servant who
has completed continuous qualifying service for a period of
not less than one year and died on or after 1st April 1979.

(ii) The revised family pension shall not be lower

than 30% of the minimum of the pay in the prescribed Level
in the Pay Matrix corresponding to the pre-revised pay
scale / pay band and grade pay from which the pensioner
had retired as per [Link].313, Finance (Pay Cell)
Department, dated 25-10-2017.

(iii) The minimum family pension payable is

Rs.7,850/- per month with effect from 01-10-2017.

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Ex-Gratia Payment

At present, ex-gratia payment of Rs.645/- per month

is being granted along with Dearness Allowance at the rate of
404 percent with effect from 1st April 2023 to the families
of deceased Contributory Provident Fund / Non-Pensionable
beneficiaries of State Government and the employees of
former District Board who had retired / died in harness prior
to 1st January 1986 and who are not eligible for family
pension.

Commutation of Pension

Pensioners are eligible to commute pension upto

33 1/3 % of pension and receive a lumpsum payment. This
concession has also been extended in the case of voluntary
retirement. However, Dearness Allowance is allowed on the
original pension prior to Commutation.

Dearness Allowance

The Pensioners / Family Pensioners including

Provisional Pensioners / Provisional Family Pensioners are
paid Dearness Allowance at par with the serving employees of
the Government.

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Medical Allowance

The Pensioners / Family Pensioners including

Provisional Pensioners / Provisional Family Pensioners are
allowed to draw Medical Allowance of Rs.300/- per month
with effect from 01-10-2017.

Pongal Prize

A lumpsum Pongal Prize amount of Rs.500/- is

sanctioned to all Government Pensioners those who retired
from the categories of ‘C’ and ‘D’ Group including all ‘C’ and
‘D’ Group Pensioners of Aided Educational Institutions, Local
Bodies, Ex-Village Establishment (Ex-Village Officers and
Village Servants / Assistants), adhoc pensioners of all
categories and to all Family Pensioners irrespective of the
Groups from which Pensioners / Deceased Government
employee had retired / died while in service.

Festival Advance

Pensioners are sanctioned festival advance of

Rs.4,000/- with effect from 02-08-2019 which is recovered
at ten equal installments.

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e-PENSION

A web-enabled software to process the pension

payment and to have a Centralized Database of the
pensioners is implemented in all the Districts and Pension
Pay Office, Chennai. Under this scheme, the monthly pension
and other retirement benefits to the pensioners are now
credited directly to the bank account of pensioners through
Electronic Clearing Service / Regional Electronic Clearing
Service. Further, migration of pension related information
from Accountant General’s database into the e-pension
Central Server is being done to ensure data accuracy and
saving of time and resources.

e-Mustering

The State Government pensioners/ Family Pensioners

submit their Life Certificate during the months of July,
August and September every year for annual mustering.

The Pensioners at their convenience were allowed to

choose any one of the following facilities:-

1) Digital Life Certificate (DLC) through Jeevan Pramaan

Portal by using the services of any one of the
following entities as per the option of the pensioners

25
 a. India Post Payments Bank (IPPB) with Door Step
Service
b. e-Seva Centres/Common Service Centres.
c. Pensioners’ Associations having biometric device
connected with Jeevan Pramaan Portal

2) Submission of Life Certificate through Post

3) Direct Mustering (Physical Appearance).

It is ensured that at least 80% Annual mustering is

done through Jeevan Pramaan Portal utilizing the door step
services of the India Post Payments Bank (IPPB)/ e-Seva
Centres / Common Service Centres /Pensioners’ Associations
having Biometric Devices thereby avoiding hardship to the
aged Pensioners / Family Pensioners coming to the Pension
Office / Treasuries in person for Mustering.

Accordingly, out of total number of 7,00,198

Pensioners, 5,85,465 (83%) Pensioners have been mustered
by Digital Life Certificate (Online) in which 84,468 (12%)
pensioners were mustered by providing the door step services
of India Post Payment Bank (IPPB).

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 The Government of Tamil Nadu has issued orders for
conducting the mustering process throughout the year with
effect from 01-07-2023 onwards as below:-

i. Mustering in respect of Service Pensioners

shall be conducted in month of retirement of the
Pensioner’s every year

ii. In the case of Pensioners drawing both Service

and Family Pension (double Pension) the month of
mustering shall be the retirement month of the
Service pensioners every year

iii. In respect of Family Pensioners, Ex-gratia

Pensioners and Special category Pensioners (Ulema
Pensioners and State Freedom Fighters Pension etc.)
the mustering shall be conducted in the month of
commencement of Family Pension, Ex-gratia Pension
and Special category Pension every year.

iv. If the Pensioners, Family Pensioners and

Special Category Pensioners failed to do the mustering
process then the pension will be stopped in the
succeeding month of the grace period of the year.

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Digitization of Pension Records

Government has sanctioned a sum of Rs.95.53 lakh

towards digitization of pension records by the Office of the
Accountant General (A&E) Chennai for Phase-I and a sum of
Rs.132.16 lakh has been sanctioned under Phase-II for the
above purpose.

Pensioners’ Portal

Due to the implementation of the IFHRMS in

the year 2020, the pensioners details are updated and
available in the IFHRMS portal. Pensioners can visit
[Link] (IFHRMS) and to visit
Kalanjiyam Mobile App to view and download their pension
details.

IV. DIRECTORATE OF PENSION:

The Government established the Directorate

of Pension with effect from 01-09-1994. This Directorate is
now headed by a Director who is in the rank of Additional
Secretary to Government, Finance Department. The major
activities of this Directorate is as follows:

(i) Redressal of the grievances of the State and

Teacher pensioners.

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 (ii) Settlement of pensioners grievances through
Pensioners’ Adalat.

(iii) Attending to the clarifications sought for by the

pensioners.

(iv) Administering and implementing the Tamil

Nadu Government Industrial Employees Provident Fund
Scheme for Government Departments.

(v) Settlement of old cases under the Tamil Nadu

Government Pensioners’ Health Fund Scheme, 1995 for
Pensioners / Family Pensioners.

(vi) Administering and implementing Tamil Nadu

Government Pensioners’ Family Security Fund Scheme,
1997.

(vii) Estimating, Reconciling and Controlling

Authority for Tamil Nadu Government Employees Special
Provident Fund cum Gratuity Schemes, 1984 and 2000.

(viii) Administering and implementing Tamil Nadu

Social Security Scheme, 1974 for unorganized daily wages,
labourers and Public.

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Tamil Nadu Government Pensioners' Family Security
Fund Scheme

The Government introduced the Tamil Nadu

Government Pensioners' Family Security Fund Scheme with
effect from 01-01-1997 and implemented it from
01-01-1998. In the case of death of pensioner after one
month of contribution to the fund, a sum of Rs.50,000/- is
paid to the eligible family members or nominee of the
pensioners.

The Government have ordered the enhancement of

pensioner’s contribution towards Tamil Nadu Government
Pensioners Family Security Fund Scheme from Rs.80/- to
Rs.150/- per month with effect from 01-07-2021. Based on
this contribution on an average, a sum of Rs.6.50 Crore is
received every month and 1300 claims made by the spouse /
nominees of the deceased pensioners are settled.

Considering the welfare of the families of the deceased

pensioners, the Government has sanctioned an assistance of
Rs.125.00 Crore as advance from the Government account
to the Tamil Nadu Government Pensioners Family Security
Fund Scheme during the period from May-2021 to
April-2024. Accordingly, 25,000 pending claims have been
settled and amount credited to the respective beneficiaries

30
bank accounts. From the inception of the scheme 2,75,453
claims to the tune of Rs.1089.25 Crore has been settled
as on 31-05-2024.

Pensioners Contribution under Family Security Fund

Scheme during the years 2021, 2022 and 2023

Year Wise Claims and Settlements of Death Cases in

Respect of Family Security Fund 2019-2024

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Tamil Nadu Government Employees Special Provident
Fund cum Gratuity Scheme 1984

This Scheme was introduced with effect from

01-04-1984. A monthly subscription of Rs.20/- per month
was being recovered from Government employee for 148
months and the total subscription is being repaid along with
interest accrued thereon at the time of retirement with
Government contribution of Rs.10,000/-. Under this scheme
settlements has been made to 10,921 retired employees from
01-04-2023 to 31-05-2024.

Tamil Nadu Government Employees Special Provident

Fund cum Gratuity Scheme 2000

Tamil Nadu Government Special Provident Fund cum

Gratuity Scheme, 2000 was introduced from 01-10-2000.
The employees who had already been enrolled under the
earlier scheme are being paid the monetary benefits
continuously at the time of their retirement. Further, all
regular Government employees in service up to 30-09-2000
were allowed to opt and subscribe Rs.50/- per month till one
month prior to the date of retirement which is refundable
along with interest accrued thereon. Under this scheme
settlements has been made to 5733 retired employees
from 01-04-2023 to 31-05-2024. This Scheme was
made compulsory to all the employees appointed

32
on or after 01-10-2000 and the subscription was fixed as
Rs.70/- per month. The total subscription is refunded with
interest at the time of retirement with Government
contribution of Rs.10,000/-.

Tamil Nadu Government Industrial Employees

Contributory Provident Fund Scheme 1969

The Scheme was introduced in the year 1969 for the

welfare of the casual Labourers earning wages in the
Government Industrial Establishments vide [Link].1883,
Finance (Miscellaneous) Department, dated 26-12-1969.
Prior to 01-04-1989, 8.33% of the wages was contributed by
the employees and equal share of contribution was paid by
the employers to the scheme. From 01-04-1989, 10% of
wages is being contributed by the employees and equal share
is made by the Government Industrial Establishments as
employer’s contribution to the scheme fund.

At present, nine Government Departments viz.

Agriculture, Agriculture (Oilseeds), Tamil Nadu Agricultural
University, Forest, Public Works Department, Animal
Husbandry, Sericulture, Horticulture and Transport are
enrolled in this Scheme. 12,694 members have so far been
enrolled in this Scheme. Employees share amount recovered

33
by the unit officer are remitted into Government
P.D. Account.

The Account slips upto the Financial Year 2023-2024

have been issued. A sum of Rs.3.57 Crore has been
disbursed as final payment to 386 beneficiaries during the
period from 01-04-2023 to 31-05-2024.

Redressal of Pensioners Grievances

The representations received from Pensioners /

Family Pensioners in various Districts, through Directorate of
Pension e-mail, Chief Minister’s Special Cell and under Right
to Information Act are given due attention for immediate
settlement of pensioners’ grievances.

Pensioners’ Grievances Meeting in the Districts

As per the revised guidelines issued by Government,

the District Collectors conduct Pensioners’ Grievances Day
Meeting once in a year in their districts. The Director or Joint
Director attends these meetings and assist in the expeditious
disposal of such grievance petitions in the Districts. The
pension benefit proposals pending with the Office of the
Accountant General are also followed up by this Directorate
to speed up settlement.

34
 From 01-04-2023 to 31-05-2024, Pensioner’s
Grievance Meetings were held in almost all the Districts.
Pension related grievances like non-payment of medical
expenses under New Health Insurance Scheme, Issue of ID
cards under New Health Insurance Scheme, Payment of
additional pension, Restoration of commutation, Payment of
Ex-gratia, Refixation of Pension, and Delay in commencing
Family Pension are the main grievances received in the
meeting.

Computerisation of the Major Schemes in the Pension

Directorate

Separate modules have been developed under

IFHRMS for the two major schemes dealt within the
Directorate of Pension viz., Tamil Nadu Family Security Fund
Scheme 1997 and the Tamil Nadu Industrial Employees
Provident Fund Scheme, 1969. Payments to the beneficiaries
are made directly through IFHRMS.

V. Pensioners New Health Insurance Scheme 2022

The New Health Insurance Scheme for Pensioners has

been extended beyond 30-06-2022 for a further period of four
years with some additional features.

35
 New Health Insurance Scheme for Pensioners 2022
has been implemented from 01-07-2022 through United
India Insurance Company Ltd., to provide health care
assistance to the Pensioners (including spouse)/Family
Pensioners on a CASHLESS basis, with provision to avail
medical assistance up to Rs.5,00,000/-(Rupees Five lakh
only) for a block period of four years (2022-2026). A monthly
subscription of Rs.497/-is being recovered from the
Pensioners/Family Pensioners.

Under the new scheme, the medical assistance has

been enhanced to the maximum limit of Rs.10,00,000/-
(Rupees Ten lakh only) for some specified
diseases/treatments.

The coverage of medical assistance under this scheme

has been extended to accident cases, where the patient got
approved treatment/undergone surgery in a non-network
hospital.

Under this Scheme, if the pensioner is consciously

choosing to avail treatment in Non-Network hospital even the
quality of treatment and facilities provided in a Non-network
Hospital is not known then the quantum of reimbursement
in such cases shall be restricted to 75% of the package rate
of similar procedure in the Similar Network hospital.

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 Kidney Dialysis and COVID-19 treatment have been
included under specified illness list to avail cashless medical
assistance up to Rs.10.00 lakh.

The Contribution Pension Scheme retirees and Village

Assistant Pensioners and Family Pensioners are covered
under this Scheme.

New Health Insurance Scheme 2022

ID cards are issued to the 6,91,191 pensioners / family
pensioners to avail the cashless medical assistance through
the medical network hospitals under the scheme.

Further, Hon’ble Minister for Finance and Human

Resources Management launched Mobile App and
Information Technology Solution Software for New Health
Insurance Scheme on 27-02-2024 to monitor the effective
implementation of the scheme.

Under this Scheme, 203 treatments are covered to

avail medical assistance i.e. 116 treatment and surgeries
and 87 medical care procedures on Cashless basis through
1294 networked hospitals and 16 Government radiation
therapy centers for cancer treatment located in Tamil Nadu,
Puducherry, Bengaluru, Thiruvananthapuram and New
Delhi.

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 In the Pensioners New Health Insurance Scheme
2022, during the period (i.e. from 01-07-2022 to 31-03-2024)
so far 1,48,104 beneficiaries have availed medical assistance
for a sum of Rs.653.29 Crore.

The Government has reimbursed an amount totaling

to Rs.6.05 Crore to the beneficiaries during the period
2022-2024 whose medical reimbursement application has
been recommended under Scenario – III or Scenario – IV of
the guidelines issued by the Government.

Apart from these, for the treatment of COVID-19

under the New Health Insurance Scheme for Pensioners, a
corpus fund has been created with a sum of Rs.2.50 Crore
and a sum of Rs.85.00 Crore has been sanctioned so far.

Additionally, for the treatment of non- critical

COVID-19 in non-empaneled hospitals under the New Health
Insurance Scheme for Pensioners, a corpus fund for a sum of
Rs.17.47 Crore has been sanctioned so far.

THANGAM THENARASU
Minister for Finance and
Human Resources Management

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