PTAD Pays N3.8 Billion Pension Arrears to 30,356 Retirees

(PTAD. Photo by Punch News)

The Pension Transitional Arrangement Directorate paid N3.82 billion in accumulated pension arrears to 30,356 pensioners under the Defined Benefit Scheme after examining their unresolved claims.

The payment, which covered pensioners from three departments of the Directorate, was delivered following the completion of a Back-End Computation Review Exercise meant to address complaints about pension calculations and underpaid payments.

The beneficiaries were chosen from the Parastatals Pension Department, the Defunct and Transferred Agencies Pension Department, and the Tertiary, Education, and Health Pension Department.

The total payment was N3.817 billion, according to a statement made by PTAD's Head of Corporate Communications, Olugbenga Ajayi, on Friday.

According to the statement, "30,356 Defined Benefit Scheme Pensioners across the Parastatals Pension Department, Defunct and Transferred Agencies Pension Department, and Tertiary, Education and Health Pension Department have received a total of N3.817 billion in accrued pension arrears from the Pension Transitional Arrangement Directorate."

"This payment represents accumulated arrears resulting from the Directorate's Back-End Computation Review Exercise to address and resolve complaints regarding pension computations and outstanding entitlements of DBS Pensioners."

According to the Directorate, the payment was made as part of its efforts to strengthen the administration of the Defined Benefit Scheme and address proven outstanding obligations owing to retirees.

In order to find and fix inconsistencies in pension calculations and ascertain unpaid entitlements owed to impacted retirees, the Back-End Computation Review Exercise was conducted.

Under the DBS, which covers pension plans for workers whose pension entitlements are managed under the pre-2004 pension system, the exercise is especially important for retirees.

The DBS functions under government-funded provisions for qualified retirees and beneficiaries, in contrast to the Contributory Pension Scheme, which is administered thru individual retirement savings accounts.

Tolulope Odunaiya, the Executive Secretary of PTAD, praised the impacted pensioners for their cooperation during the evaluation process when speaking about the payout.

Odunaiya reiterated the Directorate's dedication to guaranteeing the prompt and transparent processing and payment of verified pension obligations.

According to her, the most recent payment showed the Federal Government's dedication to resolving pension-related issues and enhancing pensioners' welfare under the Defined Benefit Scheme.

She stated, "This payment reflects the Administration of His Excellency, President Bola Tinubu's commitment to addressing pension-related issues and strengthening pension administration under the Defined Benefit Scheme."

Additionally, she gave pensioners the assurance that PTAD would keep interacting with them and handling grievances pertaining to their pension rights.

The Directorate said the disbursement was not merely a financial transaction but part of its broader effort to restore confidence in the administration of pensions by ensuring that verified claims were properly assessed and settled.

PTAD said it would continue to engage with pensioners, resolve pension-related complaints and strengthen its processes for administering the Defined Benefit Scheme.

The agency also reiterated its commitment to transparency and accountability in the management and payment of pension entitlements.

The latest disbursement comes amid continuing efforts by the federal government and pension administrators to address outstanding pension obligations and improve the welfare of retirees.

The payment is expected to provide financial relief to the 30,356 beneficiaries whose arrears arose from the computation review exercise.

PTAD was established to administer the pension liabilities of the Federal Government under the Defined Benefit Scheme following the introduction of the Pension Reform Act and the transition to the Contributory Pension Scheme.

The Directorate is responsible for verifying pensioners, computing benefits, processing payments and resolving complaints relating to pensions under its mandate.