Relief for Retirees as PTAD Implements Pension Harmonisation Policy

JOEL OLADELE, Abuja

Pensioners under the Federal Government’s Defined Benefit Scheme (DBS) are set for improved welfare following the implementation of pension harmonisation by the Pension Transitional Arrangement Directorate (PTAD).

The move is designed to eliminate long-standing disparities in pension payments across categories of retirees.

PTAD announced on Saturday that the harmonisation policy took effect from May 2026 and is aimed at promoting equity among pensioners while strengthening confidence in pension administration nationwide.

The Directorate said the reform followed approval by President Bola Ahmed Tinubu in August 2025, as part of measures captured in the 2026 pension budget under the Renewed Hope Agenda.

According to PTAD, the intervention addresses structural imbalances that had persisted in the DBS system, where pension benefits were previously calculated based on the salary structure in place at the time of individual retirement.

Under the new arrangement, pensions will now be computed using the last salary structure applicable at the cut-off date of the DBS pension system. This, PTAD explained, ensures that retirees with similar ranks, grade levels and years of service receive equal or comparable benefits, irrespective of when they exited service.

The agency described the policy as a major step toward fairness and social justice in the management of pensioners’ welfare.

Speaking on the development, the Executive Secretary of PTAD, Tolulope Odunaiya, said the reform marks a significant milestone in addressing historical inequities within the pension system.

“This intervention represents a significant step toward ensuring a more equitable structure and restoring confidence in the administration of the Defined Benefit Pension Scheme,” she said.

Odunaiya added that the initiative reflects the Federal Government’s renewed commitment to the welfare of retirees and its determination to correct systemic imbalances affecting pension payments.

She stressed that the administration is focused on recognising and honouring the contributions of retired public servants who served the nation in different capacities.

PTAD explained that beneficiaries of the harmonisation include pure federal pensioners whose obligations are fully borne by the Federal Government, as well as pensioners under the Parastatals Pension Department.

Others are retirees under the Defunct and Transferred Agencies Pension Department, and those in the Tertiary Education and Health Pension Department who initially served in federal establishments before moving to state government institutions.

The Directorate also noted that pensioners whose benefits were previously computed using outdated salary structures predating the final approved scale would also benefit from the new policy.

PTAD said the harmonisation exercise is part of broader efforts to ensure transparency, fairness and improved welfare for retirees under the Defined Benefit Scheme.

The agency further assured pensioners of its continued commitment to timely payments and ongoing reforms aimed at improving service delivery.

Odunaiya reiterated that PTAD would maintain collaboration with relevant government agencies to enhance the welfare of pensioners in line with the Federal Government’s social protection agenda.

She also reaffirmed that the Renewed Hope Agenda remains central to ongoing reforms targeted at improving the living conditions of retirees across the country.

The implementation of the harmonisation policy is expected to bring long-awaited relief to many pensioners who have consistently called for a fair and unified structure that reflects equality among retirees with similar service records.