PTAD Introduces Pension Harmonisation Under Defined Benefit Scheme to Provide Relief

• Initiative aims to boost confidence in pension administration, strengthen welfare of federal pensioners, achieve pension equity

James Emejo in Abuja

The Pension Transitional Arrangement Directorate (PTAD) has announced the start of pension harmonisation for eligible pensioners under the Federal Defined Benefit Scheme (DBS), with implementation beginning in May 2026.

The directorate described the development as a major milestone in pension administration, noting that it was made possible after President Bola Tinubu approved the inclusion of the proposed Pension Harmonisation policy in PTAD’s 2026 pension budget in August 2025.

PTAD said the initiative aligns with the administration’s Renewed Hope agenda and is designed to address long‑standing structural disparities in the administration of pensions under the DBS.

Executive Secretary and Chief Executive of PTAD, Mrs. Tolulope Odunaiya, said that the implementation marks a significant step toward ensuring fairness and equity among pensioners.

In a statement issued by Head of Corporate Communications, PTAD, Mr. Olugbenga Ajayi, Odunaiya said, “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 noted that the harmonisation underscores the federal government’s commitment to the welfare of retirees and its determination to correct structural imbalances within the pension system.

She added that the intervention further demonstrates Tinubu’s commitment to the welfare of DBS pensioners and reflects the administration’s resolve to identify and address inequities while recognising the contributions of retirees to national development.

PTAD explained that before the harmonisation, pensions were calculated based on the salary structure in force at the time each pensioner retired. Under the new arrangement, pensions will now be computed using the last salary structure in place at the cut‑off date for the DBS.

The directorate said the reform will ensure that pensioners of similar ranks, grade levels and years of service receive comparable pension benefits regardless of when they retired.

The statement further explained that beneficiaries of the harmonisation include pure federal pensioners whose entire pension obligations are borne by the federal government, as well as 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 under the federal government before transferring to state government ministries, departments and agencies, and retirees whose pensions were calculated using salary structures that predated the final approved salary structure.

PTAD maintained that the implementation of the policy has effectively addressed long‑standing structural disparities within the DBS and reinforced the federal government’s commitment to fairness, social justice and the welfare of pensioners.

The directorate also reassured retirees of its continued commitment to improving their welfare through sustained collaboration with relevant government agencies.

Odunaiya said PTAD would continue to prioritise the well‑being of pensioners in line with the Renewed Hope agenda and the administration’s commitment to social justice and improved living conditions for retirees.