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Tag: old pension scheme

  • Things to know about old pension scheme (3)

    Things to know about old pension scheme (3)

    When is the next phase of verification?

    PTAD has concluded verification for Civil Service, Police, Customs, Immigration and Prison Pensioners while that of pensioners under treasury-funded parastatals has taken off with defunct agencies.

    What are the likely reasons a pensioner can be taken off the payroll?

    You may have been removed from payroll due to the following: Inconsistent or incomplete employment records; Inconsistent or incomplete Bank details; an over payment of monthly pension has been discovered; Ineligibility based on verification outcome; lack of BVN number attributed to an account; receipt of Death Notification; and NoK attaining 18 years.

    I have made a complaint and submitted the required documents. How long will it take to resolve it?

    Your complaint will go through vetting before it can be resolved and approved for payment.  Usually, it is expected that complaints should be resolved expeditiously. However, they can vary in their complexity and may require more time.

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    Can spouses who are pensioners use the same bank account to receive their pension?

    No. This is because pension payments are based on individuals.

    Can a corporate or a business account be used to receive pensions?

    No. Pension payments are made to individuals, not corporate entities.

    How do I make complaints of short payment, non-payment of gratuities and pensions etc.?

    Complaints can be submitted online via our website www.ptad.gov.ng or visit any of our state offices and submit your complaint. Complete the complaint form and submit online or via email to complaints@ptad.gov.ng. Complaints can also be made by calling PTAD toll free on 080-2255-7823 (080-CALL-PTAD) to speak to any of our call centre agents.

    Documents required may include, but not limited to first appointment letter; last promotion letter; retirement letter; stamped and signed original bank statement on the bank letter head, covering at least six months before complaint or six months prior to retirement for non-payment of gratuity.

    What is the procedure for a pensioner to change his/her bank account for pension payment?

    A pensioner can change his or her bank account through procedures that include – Obtain statement of account from the bank; obtain a letter of non-indebtedness from existing bank; provide BVN print out from the bank; submit documents to the new intended bank; and write a notification letter to PTAD with copies of above documents.

    How do I correct an error after I have been verified?

    Send a notification to PTAD attaching a photocopy of the verification print out and supporting document for the change.

  • What you need to know about old pension scheme

    What you need to know about old pension scheme

    The old pension scheme, Pay-As-You-Go named Defined Benefit Scheme (DBS) is a pension administration that existed before June 30, 2007. 

    Consequently, those who retired before this period are being managed under the DBS.

    In total, there 226, 693 pensioners managed by Pension Transitional Arrangement Directorate (PTAD).

    PTAD established in 2013 under the Pension Reform Act (PRA) 2004 and repealed in 2014, is expected to be wind up when the last pensioner under the scheme passes on.

    According to the Directorate, the last pensioner is projected to pass on in about 45 years.

    What does PTAD stand for?

    PTAD is a treasury funded extra-ministerial agency under Federal Ministry of Finance, responsible for the management of pensions under the old pension scheme (Defined Benefit Scheme-DBS) for pensioners who did not transit to the new Contributory Pension Scheme (CPS) which is currently in effect in Nigeria.

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    What is the difference between the DBS and the CPS?

    The Defined Benefit Scheme (DBS) is the pension scheme that was in effect in Nigeria until 2007 when it was replaced with the Contributory Pension Scheme (CPD) as stipulated in the Pension Reform Act (PFA) 2004 and 2014.

    Under the DBS, the total pension obligation is borne by government as against the CPS where the accumulated pension at retirement is based on a pension plan in which an employer or employee contribute in varying percentages to build a retirement fund for an individual.

    Under the CPS, the pension fund exists from the onset and payments can be made as at when due unlike the DBS, which is dependent on government treasury for funding.

    Who are the Pensioners under PTAD management?

    Any federal public sector employee entitled to retirement benefits that retired on or before June 30, 2007 and has worked in any of the pension groups that includes Civil Service Pension Department (CSPD), Police Pension Department (PPD), Customs, Immigration and Prisons Pension Department (CIPPD), Treasury Funded Parastatals Pension Department (PaPD) and Pension Support Services Department (PSSD) falls under PTAD management. These are Pension Groups under PTAD in accordance with Section 43 (3) of the Pension Reform Act.

    What of State Pensioners?

    There are also some state pensioners who are entitled to federal share. To be a state pensioner with federal share, a retiree must have been in employment for one of the regions of Nigeria before March 31, 1976 and retired before March 31, 2011. Some public sector employees irrespective of when they retired are, however, not under PTAD’S jurisdiction. The categories of persons mentioned in Section 291 of the Constitution of the Federal Republic of Nigeria as amended are the Judicial officers of the Supreme Court and Court of Appeal; members of the Armed Forces; and the Secret Services.

    Why is verification necessary?

    It is necessary for PTAD to carry out verification to ascertain the proof of life and create a credible database of all pensioners under the DBS. PTAD did not inherit a credible pensioners’ database, there is therefore an urgent need to verify all pensioners under the DBS to enable PTAD resolve their complaints.

    The verification of pensioners is aimed at the establishment of an accurate, credible, and digitised database of pensioners under DBS and for complaint resolution; eliminating duplicate payments and ghost pensioners; regularising anomalies such as over payments and under payments; obtaining relevant work records to ensure accurate computation of pension payment; and Updating the records of the Next of Kin (NoK) for payment of death benefit.