The Pension Transitional Arrangement Directorate (PTAD), a federal agency responsible for managing pensions under the Defined Benefit Scheme (DBS), has disbursed N8.6 billion as arrears stemming from the N32,000 pension increment approved by President Bola Tinubu in 2024. This substantial disbursement marks a significant step towards fulfilling the government’s commitment to improving the welfare of pensioners under the DBS. The payment covers a total of 148,625 eligible pensioners across various sectors, including the Civil Service, Police, Parastatals, and the Customs, Immigration, and Prisons (now Correctional Service) Pension Departments. This comprehensive coverage underscores the government’s intention to ensure that all eligible pensioners benefit from the approved increment.
The breakdown of the N8.6 billion disbursement reveals a targeted allocation across the different pension departments. The Parastatals Pensions Department received the largest share, with N5.7 billion distributed to 59,342 eligible pensioners. This reflects the larger number of pensioners under this department compared to others. The Civil Service Pensions Department received N2.3 billion for 71,084 pensioners, while the Police Pension Department and the Customs, Immigration, and Prisons Pension Department received N310 million and N276 million for 9,579 and 8,620 pensioners respectively. These figures highlight the government’s efforts to distribute the funds equitably according to the number of pensioners within each department.
This latest payment follows the complete settlement of arrears from a previous pension increment of 20/28 percent, also approved by President Tinubu and effective from January 2024. The timely and complete payment of these arrears demonstrates the government’s commitment to upholding its promises to pensioners and ensuring their financial well-being. The consistent efforts to address pension arrears contribute significantly to building trust and confidence among pensioners in the government’s ability to manage their retirement benefits effectively.
PTAD Executive Secretary, Tolulope Odunaiya, emphasized that this disbursement is a testament to the Federal Government’s unwavering dedication to fully settling all outstanding balances resulting from the pension increment. Odunaiya’s statement reinforces the government’s commitment to prioritizing the welfare of pensioners and ensuring they receive their entitled benefits. This commitment aligns with President Tinubu’s Renewed Hope Agenda, which focuses on improving the lives of Nigerians, including retirees who have dedicated their years of service to the nation.
The disbursement of the N8.6 billion in pension arrears is not only a significant financial injection for the beneficiaries but also a positive indicator of the government’s efforts to strengthen the pension system. By addressing the backlog of arrears, the government aims to create a more sustainable and reliable pension system that provides timely and adequate benefits to retirees. This strengthens the social safety net for senior citizens and contributes to their overall well-being.
In conclusion, the payment of N8.6 billion in pension arrears by PTAD represents a significant milestone in the government’s commitment to improving the welfare of pensioners. The comprehensive coverage across various pension departments, the equitable distribution of funds, and the timely settlement of previous arrears demonstrate a proactive approach to pension management. This initiative, driven by President Tinubu’s Renewed Hope Agenda, aims to ensure that pensioners receive their entitled benefits and enjoy a secure retirement. The ongoing efforts to address pension arrears contribute to building a more robust and reliable pension system, ultimately strengthening the social safety net for senior citizens and fostering their overall well-being.
