Category: Pension

The old pension scheme also referred to as the Defined Benefit Scheme (DBS) covers the administration of pensioners who retired before June 30, 2004.

Although riddled with maladministration in the past, the Pension Transitional Arrangement Directorate has been working tirelessly to pay all outstanding pension liabilities owed workers under the scheme.

The Directorate has a mandate to also pay monthly pensions to pensioners under the scheme until the last person passes on.

Here are key facts about the scheme:

What does PTAD stand for?

PTAD is an acronym for Pension Transitional Arrangement Directorate. PTAD is a  Treasury Funded Extra-Ministerial Department under the Federal Ministry of Finance. PTAD is responsible for the management of pensions under the old pension scheme, (Defined Benefit Scheme) for pensioners who did not transit to the new Contributory Pension Scheme (CPS) which is in effect in Nigeria.

What is the difference between the Defined Benefit Scheme (DBS) and the Contributory Pension Scheme (CPS)

The DBS is the pension scheme that was in effect in Nigeria until June 2007 when it was replaced with the Contributory Pension Scheme (CPS) as stipulated in the Pension Reform Act (PRA) 2014. Under the DBS, the total pension obligation is borne by government whereas under the CPS, the accumulated pension at retirement is based on a pension plan wherein the employer and employee contributed in varying percentages to build a retirement fund for the employee. In addition, with the CPS, the pension fund exists from the onset and payments can be made as at when due unlike the DBS which is wholly dependent on government treasury for funding.

Who are the Pensioners under PTAD management?

Federal Public Sector employees eligible to retirement benefits, and who retired on or before the 30th June, 2007, and have worked in any of the pension groups listed below, are under PTAD management in accordance with section 43 (3) of the PRA, 2014 –

The Civil Service Pension Department (CSPD)

The Police Pension Department (PPD)

The Custom, Immigration and Prisons Pension Department (CIPPD)

The Treasury Funded Parastatals Pension Department (PaPD)

What of State Pensioners?

There also some state Pensioners who are entitled to Federal Share of Pensions. To be a State Pensioner with Federal Share, a retiree must have been in the employment of one of the regions of Nigeria before 3rd day ofbMarch, 1976 and retired before the 3rd day of March, 2011.

The following public sector employees irrespective of when they retired are however NOT under PTAD’s jurisdiction:

Judicial Officers of the Supreme Court and Court of Appeal.

Military

The Intelligence and Secret Services of the Federation

What is retirement age?

The Federal Government approved the 35 years of pensionable service or 60 years of age for retirement whichever that comes earlier.

What is the qualifying length of service for Pension and Gratuity?

Answer: The qualifying length of service for gratuity is now five (5) years, while pension is ten (10) years with effect from 1st June, 1992. Before then, the qualifying length of service for gratuity and pension was 10 and 15 years respectively. An officer who retires voluntarily after qualifying years of service cannot draw pension until he attains the age of forty five (45).

What are the circumstances under which Pension and Gratuity may be granted?

Section 3 (1) and (2) of the Pension Decree No. 102 of 1979 stipulates the circumstances under which pension and gratuity may be granted as follows –

on voluntary retirement or withdrawal after qualifying years of service;

Statutory retirement. This is where the officer attains the statutory age of 60 years or has worked for 35 years on a pensionable appointment;

compulsory retirement;

on the advice of a properly constituted Medical Board certifying that the officer is no longer mentally or physically capable of carrying out the functions of his office;

on total permanent disability while in service; or

on abolition of office under section 7 of Pension Decree No. 102 of 1979.

ABAWONKU: My name is Mabawonku, a federal/state pensioner. I worked  at the Nigeria Educational Research and Development Centre (NERDC) from September 14, 1982 to July 6, 1993.   

  Thereafter, I joined the Lagos State Government Civil Service on July 15, 1993 and retired on January 26, 2008 as a Director.

  The Lagos State Government paid its share of gratuity and pension in 2010 but that of the federal share has not been paid up till today, despite several demands in writing.

  I am owed gratuity and six months’ pension arrears from January to July 1993.

  I did physical verification with PTAD at Tafawa Balewa Square in Lagos on April 23, 2019. I submitted bank statements from 2008 to date as requested by PTAD and other documents.

My original pension file has been retrieved from NERDC by PTAD Since November 2017. With all the conditions met, since 2019, still, the gratuity and pension arrears have not been paid. Kindly help me.

PTAD: Response in progress. 

IRIOGBE: Good day, my name is Iriogbe, a NIPOST retiree. My phone had been inundated for some time with requests from some colleagues who want to know if PTAD has stopped the online verification of Federal Government pensioners. They are worried that after some pensioners were chosen to do same, they are yet to be asked to do theirs and this has caused a lot of worries to them, fearing it may eventually lead to the removal of their names from payroll.  They are not tired of phoning me, having known that I have done my work late last year. Please, clarify.

PTAD: Pensioner was sceptical and refused to provide more details on his career. 

OYIBO: Good day, I am Oyibo. I retired from NYSC. I received PTAD response in The Nation dated Wednesday, July 30, 2022, which stated that my pension arrears were being computed.

Please, I am still waiting for the payment of the eight years’arrears and for me to be on the monthly payroll. Thank you.

PTAD: Pensioner to provide a Letter of Introduction from former MDA signed by a Director.

TAUHID: My name is Tauhid. I am a state pensioner with Federal share. I retired as a Director on Grade Level 16 step 9. I retired in May 2009 and was verified in Niger State in December 2017.

I have made several attempts to visit PTAD office at Maitama, Abuja. I have sent many people to facilitate the payment of my federal share of gratuity. I wrote in The Nation of October 19, 2016 but all to no avail.

I am still waiting. I have exercised patience.

Please note that  I am suffering from two serious diseases. The newspaper should help me so that PTAD can pay me the Federal Share of Gratuity. Thank you.

PTAD: Pensioner to provide details of MDA, verification slip and Bank statement from December 2022 to date and has agreed to submit.

FASHAKIN: Dear Omobola, I read your column on pensions in The Nation and decided to contact you.

My name is Fashakin, a pensioner from Nigerian Railway Corporation (NRC). After our retirement 17 years ago, the management of the corporation paid part of our entitlement and refused to pay the balance.

Several letters had been written and efforts made to get our legitimate right but they were rebuffed by the management. Then, we engaged the service of a lawyer who wrote to ask for our money. The management replied our lawyer that he should forward the names and other information of his clients that they were owing. The names were sent to them, still the management refused paying.

All these happened last year.The case was referred to EFCC on January 11, this year. We waited for EFCC to call us for investigation, according to our lawyer.

But when we did not hear from them, I went to their office on May 20, 2022 with a letter of reminder. The letter was refused, to my greatest surprise. I was told that EFCC declined to investigate the case of fraud brought against the railway management.

Madam, I have the proof of all I have said.

I would be glad if you can step in and look into our case. Thank you.

PTAD: Pensioner did not state nature of complaint. He did not respond to phone calls. He can contact PTAD directly.

OWOEYE: Dear Omobola, I am Owoeye. I complained about the backlog of pension arrears to PTAD and I sent documents to you through gmail to your office on December 31, 2020. My complaints are: omission on payroll from January 2000 to February 2005; short payment from February 1, 2005 till date (N419,315.10).

The PTAD officer, who was handling my file, ignored my bank statement and every complaint I made was underlined and asterisk in the bank statement.

Also, the harmonisation approved by the Federal Government was not paid.

PTAD: Mr. Owoeye should provide detailed bank statement from retirement till date.

NKANU: My name is Nkanu. I retired on February 29, 1995 from the University of Jos. I have not received my pension salary for May.

PTAD: Mr. Nkanu’s pension has been paid.

RAPAEL: Please I want to know why a text message is sent to me every five months to confirm whether I am alive while other people are not bothered like me. The only one other pensioner that gets such messages is in Akwa Ibom. I am not happy over it, the text should be general not to two selected people. Thank you.

PTAD: The messages are error. Kindly ignore.