UPSC Prelims Practice Questions — What is T.N.’s new hybrid pensionmodel?

Q1. Which one of the following best describes the Tamil Nadu Assured Pension Scheme (TAPS), made effective from 1 January 2026?

  • A. A pure defined-contribution pension scheme with market-linked returns and no guaranteed payout, modelled on the National Pension System
  • B. A hybrid pension scheme that guarantees 50% of last-drawn basic pay plus dearness allowance as pension while mandating a 10% employee salary contribution
  • C. A non-contributory scheme that fully restores the pre-2003 Old Pension Scheme for all serving Tamil Nadu government employees
  • D. A unit-linked annuity scheme funded entirely from the state's consolidated fund with no role for employee contributions

Q2. With reference to the Tamil Nadu Assured Pension Scheme (TAPS) launched in January 2026, as compared with the Contributory Pension Scheme (CPS) it replaces for new recruits, consider the following statements: 1. Unlike CPS, TAPS provides an assured monthly pension equal to 50% of the last-drawn basic pay plus dearness allowance. 2. Unlike CPS, TAPS does not require any monthly contribution from the employee's salary. 3. Unlike CPS, TAPS provides bi-annual dearness allowance revisions for pensioners at par with serving state government employees. Which of the statements given above is/are correct?

  1. Unlike CPS, TAPS provides an assured monthly pension equal to 50% of the last-drawn basic pay plus dearness allowance.
  2. Unlike CPS, TAPS does not require any monthly contribution from the employee's salary.
  3. Unlike CPS, TAPS provides bi-annual dearness allowance revisions for pensioners at par with serving state government employees.
  • A. 1 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q3. The Tamil Nadu Assured Pension Scheme (TAPS), made effective from 1 January 2026, was announced under the government of which one of the following Chief Ministers of Tamil Nadu?

  • A. Edappadi K. Palaniswami
  • B. O. Panneerselvam
  • C. M. K. Stalin
  • D. K. Palaniswami (during AIADMK–BJP alliance government)

Q4. Under the Tamil Nadu Assured Pension Scheme (TAPS) effective 1 January 2026, what is the mandatory monthly contribution that a covered employee must make from his/her salary?

  • A. 8% of basic pay plus dearness allowance
  • B. 10% of basic pay plus dearness allowance
  • C. 12% of basic pay plus dearness allowance
  • D. 14% of basic pay plus dearness allowance

Q5. In Tamil Nadu, which one of the following is the nodal state department responsible for operationalising the Tamil Nadu Assured Pension Scheme (TAPS)?

  • A. Department of Personnel and Administrative Reforms
  • B. Finance Department
  • C. Labour Welfare and Skill Development Department
  • D. Social Welfare and Women Empowerment Department