New minimum wage: PTAD pays nine-month arrears to DBS pensioners

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The Pension Transitional Arrangement Directorate (PTAD) says it has paid an additional nine months of consequential adjustment arrears occasioned by the new minimum wage increase of 2019 to the defined benefit scheme (DBS) pensioners.

Gbenga Ajayi, PTAD’s spokesperson, disclosed this in a statement issued on behalf of Chioma Ejikeme, executive secretary of PTAD, on Tuesday, in Abuja .

The 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/employee contribute in varying percentages to build a retirement fund for an individual

The Pension Transitional Arrangement Directorate (PTAD) received £26.5million pension funds repatriated from the United Kingdom.

PTAD said the arrears of nine months were paid to civil service pension department pensioners and six months of the same arrears to parastatals, police, customs, immigration and prisons department pensioners.

“This brings the arrears paid so far to a total of 18 out of the 24 months arrears of the pension increment.”

The statement noted that in May the directorate implemented the consequential adjustment on pensions as a result of the minimum wage increment of 2019 and commenced payment of arrears to the pensioners of the operational departments as directed by President Muhammadu Buhari.

“The Civil Service Pensioners were paid nine months of the arrears while parastatals, police and customs, immigration and prisons pensioners were paid 12 months arrears in May,” the statement reads.

“With this payment, each of the pensioners in the 4 operational departments would have a balance of six months arrears left to be paid.”

He added that the payment was to further support DBS pensioners, especially during this festive period of this year’s Eid-el Kabir celebration.

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