PTAD Finalizes Settlement of N32,000 Pension Increment Arrears

JOEL OLADELE, Abuja

The Pension Transitional Arrangement Directorate (PTAD) has concluded the payment of the outstanding one-month arrears of the N32,000 pension increment to eligible pensioners under the Defined Benefit Scheme (DBS), bringing to a close all obligations tied to the adjustment.

In a statement issued on Tuesday by its Head of Corporate Communications, Olugbenga Ajayi, the Directorate said a total of N1.73 billion was disbursed to 54,206 pensioners as part of the final settlement.

The payment represents the last tranche of arrears arising from the N32,000 pension increment approved by the National Salaries, Incomes and Wages Commission (NSIWC), which took effect from July 29, 2024.

PTAD explained that the arrears covered a 13-month period from August 2024 to August 2025, noting that 12 months had earlier been paid in phases between December 2024 and December 2025.

“With this final payment, all outstanding obligations of the N32,000 pension increment have now been fully settled,” the statement said.

A breakdown of the disbursement showed that under the Parastatals Pension Department, 25,804 pensioners received a total of N825.73 million, completing the full 13 months of arrears due to beneficiaries in that category.

Similarly, under the Tertiary Education and Health Pension Department, 28,402 pensioners were paid N908.86 million, also covering the entire arrears period.

The Directorate clarified that not all pensioners under the Defined Benefit Scheme were eligible for the increment. It noted that retirees from institutions such as Peoples Bank, Assurance Bank, Nigeria Reinsurance, NICON Insurance, NITEL/MTEL, Petroleum Training Institute and PHCN were excluded, having already benefited from earlier pension increases of 10.66 per cent and 12.95 per cent.

These exemptions, PTAD said, were in line with the relevant circular issued by the National Salaries, Incomes and Wages Commission.

The Directorate reaffirmed its commitment to efficient pension administration, stating that timely payment and transparency remain central to its operations.

PTAD added that the completion of the arrears payment underscores its resolve to improve the welfare of pensioners and ensure that retirees receive their entitlements without unnecessary delays.

It also aligned the development with the policy direction of President Bola Tinubu, noting that the initiative supports the administration’s broader objective of enhancing the welfare and dignity of senior citizens.

The settlement is expected to bring relief to thousands of pensioners who had awaited the balance of the increment, as stakeholders continue to call for sustained reforms in the pension sector.