Defined Benefit Pensioners To Get Free Health Insurance Coverage By 2026

There are ongoing discussions between the Pension Transitional Arrangement Directorate (PTAD) and the National Health Insurance Authority (NHIA) to ensure that pensioners under the Defined Benefits Scheme (DBS) get free health insurance services, LEADERSHIP learnt.

To this end, about 80 per cent of pensioners under the old pension scheme are expected to have access to this free health insurance coverage as push to capture every retiree under this plan intensifies.

Confirming this development at a forum in Lagos last week, the executive secretary/CEO, PTAD, Tolulope Odunaiya, said, the welfare of pensioners had greatly improved since the directorate came into existence, even as efforts are made on a regular basis to ensure retirees live a good life in retirement, one of which is the free health insurance services.

Odunaiya, who was represented on the occasion by the head, Corporate Communication, Mr. Olugbenga Ajayi and the head, Lagos Regional Office, Mr. Casmir Audu, said the Directorate had introduced various initiatives aimed at actualising its mandate which is to manage pension benefits for federal government retirees under the old DBS, who did not transit to the Contributory Pension Scheme (CPS).

Noting that, PTAD’s mandate is to ensure that eligible pensioners receive their due pension payments promptly and accurately, he added that, “since  the establishment of PTAD in 2013, and up till this present moment, PTAD has never failed to pay pensions every month, that is why we have been able to take pensioners out of the streets; that is one of the credibility the present government is enjoying because nobody is diverting money meant for payment of pensions anymore.”

He stated that the Directorate had continued to introduce various initiatives to enhance its efficiency and effectiveness, some of which are; Field Verification, I Am Alive Confirmation, Mobile Verification, among others.

“As we progressed, we discovered that we shouldn’t be calling our fathers and mothers, especially, those from far away to come and do verification here in Lagos and a technology was introduced. We call that technology ‘I Am Alive’ Confirmation.

Why do we call it ‘I Am Alive’? Because pension under DBS is for life.  Once you are still alive, you are entitled to your pension. I Am Alive enables pensioners to confirm their status even inside their home at every location. This is done through an internet-enabled phone and anybody can help you do it. Once you confirm your status, in the next six months, your pension will continue to run.

“We have introduced Mobile Verification for people who are sick, or those who are alive but are incapacitated to attend normal verification, we schedule mobile confirmation for those who have done ‘I Am Alive’ verification but later falls sick,” he added.

The ES disclosed that PTAD is a federal government treasury funded agency with no commercial bank account, adding that their responsibility is to prepare schedules of pension payment.

“PTAD doesn’t have any account in any Commercial Bank so we don’t keep any money because we are a treasury funded agency. Pensions are paid by the Central Bank and are paid directly into pensioners’ accounts. Our duty is to prepare the schedules of payment and it will pass through various tables including Federal Auditors, Internal Auditors, Accountant General Office, so it is not something that somebody will just wake up and say PTAD has money somewhere,” he explained.