PTAD Paid N1 Trillion in Pensions to Retirees Since 2015
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PTAD Pays Over N1 Trillion in Pensions to Federal Retirees Since 2015
Overview
The Pension Transitional Arrangement Directorate (PTAD) has reported disbursing over N1 trillion in monthly pensions to Federal Government retirees under the Defined Benefit Scheme (DBS) since assuming full pension management responsibilities in 2015. This achievement underscores the agency’s dedication to reforming and stabilizing the pension system for those not covered by the Contributory Pension Scheme.
Key Figures and timeline
Kabiru Yusuf, PTAD’s Director of Corporate Services, revealed the N1.002 trillion figure during a training workshop for pension correspondents and online editors in Abuja. This amount covers monthly payments to an average of 212,385 pensioners. The agency’s operations began in 2015 following the pension Reform Act of 2014.
| Year | Approximate Total Pension Paid (N) | average Number of Pensioners |
|---|---|---|
| 2015 – 2023 (Oct) | 1,002,000,000,000 | 212,385 |
PTAD’s Mandate and Scope
Established by the Pension Reform Act 2014, PTAD was created to manage the pensions of Federal Government workers who remained under the Defined Benefit Scheme after the introduction of the Contributory Pension Scheme. This includes retired officers from the Nigeria Police, Customs, Immigration, Correctional Service, civil service retirees, and pensioners of treasury-funded parastatals.
PTAD operates under the supervision of the federal Ministry of Finance and is regulated by the National Pension Commission (PenCom). The directorate collaborates with other key government bodies, including the Office of the Accountant-General of the Federation, the Office of the Auditor-General, the Budget Office, and relevant National Assembly committees.
Addressing Past Challenges
Prior to PTAD’s establishment, the pension administration system was plagued by important issues. These included the presence of ghost pensioners
,widespread fraud,inadequate controls,insufficient funding,and a backlog of unresolved complaints. These problems resulted in substantial financial losses for the government and left many legitimate pensioners without their due benefits.
Yusuf emphasized that PTAD’s guiding principles are fairness and accuracy, encapsulated in the policies of “one pensioner equals one pension” and ”pay the correct pension, to the correct pensioner, at the correct time.”
Understanding the Defined Benefit Scheme
The Defined Benefit Scheme is a customary pension plan where benefits are calculated based on factors like years of service and final salary. unlike the Contributory Pension Scheme, where employees and employers contribute, the DBS is primarily funded by the government. PTAD’s role is vital in ensuring the continued viability and equitable administration of this scheme for those who remain eligible.