Pension Transitional Arrangement Directorate of the Parastatals Pensions Department has successfully released ₦1.023 billion to 7,091 pensioners from the Department of Power and Transport.
According to The Times, the Head of Corporate Communications at PTAD, Mr. Gbenga Ajayi, declared in Abuja on Saturday that the payment paid for 39% of the pension arrears that retirees had accrued between August 2015 and September 2023.
The monthly pension amount for PaPD retirees was calculated using their career information, compensation structure, and any applicable pension increases.
He added that a back-end calculation carried out by PTAD was used to estimate the arrears.
Ajayi claims that PTAD’s research revealed a payroll problem wherein 7,091 pensioners in the industry were not receiving enough payments, underscoring the need for corrective action.
He continued by saying that the Executive Secretary of PTAD, Dr. Chioma Ejikeme, had mentioned that the back-end computation was required to guarantee that each pensioner received an accurate pension in the interests of justice, equity, and fairness.
August 2013 saw the establishment of the Pension Transitional Arrangement Directorate in accordance with the Pension Reform Act 2004. The PRA 2014 replaced the PRA 2004.
Government pensions were overseen by distinct departments prior to the PRA’s passage; they were all a part of the fully treasury-funded Defined Benefits Scheme.
The PRA 2014’s Section 42 (1) gave PTAD the authority to assume management of a number of defunct pension offices. This included the pensions of over two hundred Treasury Funded Parastatals as well as the Civil Service Pension Office, which reports to the Head of the Civil Service of the Federation, the Police Pension Office, and the Customs, Immigration, and Prisons Pension Office.
Those who had worked for the federal government and retired on June 30, 2007, or before, without switching to the Contributory Pension Scheme, were considered pensioners.
