In a significant development, the Pension Transitional Arrangement Directorate (PTAD) has successfully delivered ₦1.02 billion in accrued arrears to 7,091 pensioners affiliated with the Power and Transport Sectors under the Parastatals Pensions Department (PaPD).
Announced by PTAD’s Head of Corporate Communications, Mr. Gbenga Ajayi, in Abuja over the weekend, this substantial payment addresses 39% of the pension arrears accumulated between August 2015 and September 2023.
To determine the monthly pension amount for PaPD retirees, a meticulous computation was carried out, considering their career details, salary structure, and any applicable pension increases. Furthermore, the arrears were meticulously calculated through a PTAD-conducted back-end assessment.
According to Ajayi, PTAD’s investigation revealed a payroll discrepancy affecting 7,091 pensioners in the sector, highlighting the urgency for corrective measures.
In addition, PTAD’s Executive Secretary, Dr. Chioma Ejikeme, emphasized the necessity of the back-end computation to ensure that each pensioner receives a just and equitable pension.
A Glimpse into PTAD’s Role
Established in August 2013, the Pension Transitional Arrangement Directorate (PTAD) aligns with the Pension Reform Act (PRA) of 2004, later succeeded by the PRA 2014.
Before the enactment of the PRA, government pensions were overseen by separate offices, all operating within the entirely treasury-funded Defined Benefits Scheme.
Under Section 42 (1) of the PRA 2014, PTAD was vested with the authority to oversee the administration of several former pension offices. This encompassed the Civil Service Pension Office (CSPO) under the Head of the Civil Service of the Federation, the Police Pension Office (PPO), the Customs, Immigration, and Prisons Pension Office (CIPPO), as well as the pensions of more than two hundred Treasury Funded Parastatals.
These pensioners were individuals who had served the Federal Government and retired on or before June 30, 2007, without transitioning to the Contributory Pension Scheme (CPS).
This substantial disbursement by PTAD underscores its commitment to addressing long-standing pension arrears and ensuring fairness for retirees within the Power and Transport Sectors. It reflects the organization’s vital role in streamlining pension administration, upholding justice and equity in pension disbursements.
