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FG Implements Harmonisation Of PensionĀ 

Mark Itsibor by Mark Itsibor
3 weeks ago
in Business
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The federal government has announced the implementation of pension harmonisation for eligible pensioners under the defined benefit scheme (DBS) managed by the Pension Transitional Arrangement Directorate (PTAD). The implementation took effect from May, 2026, according to a statement from the agency.

 

President Tinubu had in August 2025, approved the proposed pension harmonisation policy for DBS pensioners in PTAD’s 2026 pension budget.

 

PTAD said the implementation of the pension harmonisation has addressed the long-standing structural disparities within the old pension administration and reinforced ā€œthe Federal Government’s commitment to fairness, social justice, and the welfare of retirees.ā€

 

Executive secretary of PTAD, Tolulope Odunaiya said ā€œthis intervention represents a significant step toward ensuring a more equitable structure and restoring confidence in the administration of the Defined Benefit Pension Schemeā€.

 

She said the development represents government’s steadfast commitment to pensioners’ welfare, as well as its resolve to identify structural inequities and implement corrective measures that duly recognise and honour the contributions of DBS retirees.

 

Prior to the implementation, pensions were computed for pensioners based on the salary structure applicable at the time of their individual retirement from service.

 

With the pension harmonisation, the government said pensions are computed using the last salary structure at the cut-off date for the DBS pension. This ensures that DBS pensioners of similar ranks, grade levels, and years of service receive equitable pension benefits regardless of their retirement date.

 

The eligibility for pension harmonisation applies to pensioners who are purely federal pensioners, whose entire DBS pension obligation falls under federal government’s purview, state and federal share pensioners under parastatals pension department, defunct and transferred agencies pension department, and tertiary education and health pension department who initially served with the federal fovernment and subsequently transferred to state government MDAs.

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It is also meant for pensioners on earlier salary structures whose pensions were hitherto calculated on salary structures predating the final approved Salary Structure.

 

The executive secretary reassured pensioners of the commitment to prioritizing their welfare through continuous collaboration with relevant government agencies to enhance their overall well-being.

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Mark Itsibor

Mark Itsibor

Mark Itsibor is an economy and finance journalist with over 13 years of experience across Nigeria's media landscape, specialising in macroeconomic policy, financial markets, fiscal reforms, and public finance. He is known for well-researched reports and analytical features that inform policy conversations and support public understanding of complex economic developments.

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