PTAD: Pension Harmonisation Will Promote Equity, Improve Retirees’ Welfare

By LOVETH-AZODO CHIJIOKE, LAGOS

The Pension Transitional Arrangement Directorate (PTAD) has said the ongoing harmonisation of pensions under the Defined Benefit Scheme (DBS) is aimed at correcting long-standing disparities in pension payments and ensuring greater equity among retirees.

Executive Secretary/Chief Executive Officer of PTAD, Mrs. Tolulope Abiodun Odunaiya, said the exercise represents one of the most significant reforms undertaken in the administration of legacy pensions since the Directorate was established in 2013.

She explained that the harmonisation initiative, approved under President Bola Tinubu’s Renewed Hope Agenda, is intended to improve retirees’ welfare, restore fairness in pension administration and reinforce confidence in the Defined Benefit Scheme.

According to Odunaiya, the exercise differs fundamentally from the routine pension increments periodically approved by government.

While pension increases simply raise existing benefits by a specified percentage, she said harmonisation involves a fresh computation of pensions using the latest approved salary structures that were in force before the Defined Benefit Scheme was closed.

She noted that the objective is to ensure that pensioners who retired on the same grade level, occupied similar positions and served for comparable years receive equitable pension benefits, irrespective of when they left service.

The PTAD boss observed that the reform is expected to address years of complaints by pensioners over disparities in pension payments arising from differences in retirement dates rather than career progression or years of service.

She explained that under the harmonisation framework, pension benefits will be determined primarily by rank, grade level and length of service, a move she said will help eliminate historical inequities that have affected thousands of retirees over the years.

According to her, the Directorate believes the exercise will strengthen social justice within the pension system while ensuring a more transparent and equitable approach to pension computation.

Odunaiya added that the harmonisation programme covers pensioners under the Federal Government as well as eligible retirees in the Parastatals Pension Department (PaPD), the Defunct and Transferred Agencies Pension Department (DTAPD), and the Treasury-Funded Federal Universities, Polytechnics and Colleges of Education Pension Department (TEHPD), particularly those who began their careers under the Federal Government before their agencies were transferred to state governments.