PTAD Implements Pension Harmonisation, Brings Renewed Hope to Defined Benefit Scheme Pensioners

The Pension Transitional Arrangement Directorate (PTAD) has announced the implementation of Pension Harmonisation for eligible pensioners under the Federal Defined Benefit Scheme (DBS), effective May 2026.

The Directorate described the development as a landmark achievement made possible through the approval of President Bola Ahmed Tinubu, GCFR, who, in August 2025, endorsed the proposed Pension Harmonisation policy for DBS pensioners as part of PTAD's 2026 Pension Budget in line with his Renewed Hope Agenda.

PTAD stated that the implementation addresses long-standing structural disparities within the Defined Benefit Scheme pension administration and reinforces the Federal Government's commitment to fairness, social justice, and the welfare of retirees.

Speaking on the development, PTAD Executive Secretary, Mrs. Tolulope Odunaiya, said the intervention marks a significant milestone in ensuring a more equitable pension structure and restoring confidence in the administration of the Defined Benefit Pension Scheme.

"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 noted that the harmonisation demonstrates President Tinubu's unwavering commitment to the welfare of DBS pensioners and his administration's resolve to identify and correct structural inequities while recognising and honouring the contributions of retirees.

She explained that before the harmonisation, pensions were calculated based on the salary structure applicable at the time individual pensioners retired from service.

According to her, the new arrangement ensures that pensions are computed using the last salary structure at the cut-off date for the Defined Benefit Scheme pension, thereby guaranteeing that pensioners of similar ranks, grade levels, and years of service receive equitable benefits regardless of their retirement dates.

The Executive Secretary further outlined the categories of pensioners eligible for the harmonisation. These include Pure Federal Pensioners whose entire DBS pension obligations are borne by the Federal Government; State and Federal Share Pensioners under the Parastatals Pension Department (PaPD); Defunct and Transferred Agencies Pension Department (DTAPD); and the Tertiary Education and Health Pension Department (TEHPD).

Also eligible are pensioners who initially served with the Federal Government and later transferred to State Government Ministries, Departments and Agencies (MDAs), as well as pensioners whose benefits were previously calculated using salary structures that predated the final approved salary structure.

Odunaiya reassured pensioners of PTAD's continued commitment to prioritising their welfare through sustained collaboration with relevant government agencies to improve their well-being.

She said the initiative aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu and underscores the administration's dedication to promoting social justice and enhancing the welfare of Defined Benefit Scheme pensioners.