In a landmark shift for Nigeria’s pension landscape, the Pension Transitional Arrangement Directorate (PTAD), established in 2013 under the Pension Reform Act of 2004, repealed and re-enacted in 2014, has spent the last decade turning the tide for retirees under the Defined Benefit Scheme (DBS).
Created to manage pensions for those who retired before June 30, 2007, and did not transit to the Contributory Pension Scheme, PTAD has made extraordinary strides in ensuring that these pensioners
receive their entitlements with the dignity and efficiency they deserve.
Through sweeping verification initiatives, significant financial recoveries, innovative service rollouts, and strategic infrastructure expansions, PTAD has dramatically improved the pension system. This feature delves into the pivotal achievements that underscore PTAD’s commitment to transforming the lives of Nigeria’s retirees.
PTAD’s Landmark Achievements Over the Past Decade:
Comprehensive Verification and Database Development
- Biometric Verification of Pensioners: PTAD’s extensive biometric verification exercises, conducted between 2015 and 2019 across Nigeria’s geopolitical zones, stand out as a cornerstone of its reforms. Covering all Operational Departments— including the Civil Service Pension Department, Police Pension Department, Customs, Immigration and Prisons Pension Department, and Parastatals Pension Department—this initiative has ensured that pension records are both accurate and secure.
- Digitized Pensioner Database:
A first for Nigeria, PTAD established a centralized and digitized database for pensioners under the Defined Benefit Scheme. This innovation has significantly boosted the accuracy and reliability of
pension records, setting a new standard in the sector. - Automated Pension Computation:
PTAD introduced advanced software for the automated calculation of pension benefits, streamlining the process enhancing the precision of payments and eliminating manual interference in the computation of pensions. - Innovations in Pensioner Services: I Am Alive Confirmation Solution: In a bid to make life easier for pensioners, PTAD launched the “I Am Alive” Confirmation Solution—a web-based platform allowing retirees to confirm their status from the comfort of their homes using a smartphone or computer. This breakthrough eliminated the need for time-consuming, expensive, risky and often cumbersome field verifications.
- Financial Recoveries and Payments: Regular, uninterrupted and timely payments of monthly pension to pensioners. Over N800 billion has been paid in monthly pensions without default
in the last decade. - Recovery of Legacy Pension Assets:
PTAD’s recovery of N17.85 billion from the Boards of Trustees and underwriters of treasury-funded Federal parastatals is a testament to its relentless efforts to secure funds owed to pensioners. These funds have been vital in clearing outstanding pension arrears. - Repatriation of UK Pension Funds: In a historic move, PTAD repatriated £26.5 million from Crown Agents Investment Managers Limited in the UK, which was channelled toward settling inherited
arrears of Defunct and Privatized Agencies in December 2021. - Payment of Inherited Liabilities:
Over the past decade, PTAD has disbursed more than N200 billion to clear various inherited pension liabilities and other arrears. Key highlights include:- 33% Increment Arrears: PTAD successfully cleared long-standing arrears owed to pensioners as a result of a Pension Increment of 2010.
- Ex-Workers Payments: PTAD provided one-off payments to former employees of the Aluminium Smelter Company of Nigeria (ALSCON), Savannah Sugar, and the Nigerian Aviation Handling Company (NAHCO), among others. War-Affected Police Officers: In a gesture of reconciliation and justice, PTAD paid N1.1 billion in pension arrears and gratuities to 303 pardoned War-Affected Police Officers and the next-of-kin of deceased officers.
- Other Settlements: PTAD has been instrumental in adding 251 ex-workers of Assurance Bank to the payroll and paying their 69 months of arrears. Furthermore, the Directorate disbursed over N8.5 billion in pension arrears and gratuities to Civil Service Pensioners and the next-of kin of deceased pensioners.
- Comprehensive Liability Liquidation:
PTAD’s efforts to clear outstanding liabilities have brought relief to many. Notable achievements include: - Nigeria Reinsurance Corporation: PTAD liquidated 126 months of arrears for 287 ex-workers.
- New Nigeria Newspaper Limited: 509 ex-workers had their 219 months of arrears fully settled.
- Nigeria National Shipping Line: PTAD cleared 92 months of arrears for 522 ex-workers and placed them on the monthly payroll.
- NICON Insurance: 1,046 ex-workers had 100 months of arrears settled.
- Delta Steel Company (DSC): PTAD paid off 96 months of arrears for 3,657 ex-workers.
- PHCN Workers: PTAD implemented a 9.7% increment, disbursing N6.9 billion in arrears to former PHCN workers.
- NITEL/MTEL Pensioners: PTAD has paid 49 months of the 84 months of inherited arrears, with 35 months remaining for full settlement.
- Recent Initiatives
- Special Gratuity and Death Benefits Project: Launched in December 2023, this project focuses on addressing unpaid gratuities and death benefits across all departments. By July 2024, N395.6 million had been disbursed to 238 next-of-kin and pensioners.
- New Pension Increment: PTAD has in August 2024, paid over N8.647 as accrued arrears for a new pension increment awarded to pensioners in November 2023 and April 2024 ensuring that pensioners receive benefits that reflect current economic realities.
- Infrastructure and Service Expansion
- Liaison Offices: To bring pension services closer to retirees, PTAD has established 12 liaison offices across Nigeria’s six geopolitical zones, making it easier for pensioners to access support.
- Mechanized File Storage: In a move to enhance record-keeping and accessibility, PTAD introduced a mechanized storage for pensioners’ files.
- Through these initiatives and achievements, PTAD has not only strengthened Nigeria’s pension system but has also set a new benchmark for efficiency, transparency, and service delivery in the public sector. As the Directorate continues to evolve, it remains committed to ensuring that Nigeria’s retirees receive the benefits they deserve with dignity and respect.
