Tinubu Approves Pension Harmonisation as PTAD Moves to End Longstanding DBS Disparities By Raymond Enoch
The Pension Transitional Arrangement Directorate (PTAD) has commenced the implementation of pension harmonisation for eligible retirees under the Federal Defined Benefit Scheme (DBS), a move expected to address long-standing disparities in pension payments and improve equity among pensioners.
The development was disclosed in a statement signed by Olugbenga Ajayi, mnipr, Head of Corporate Communications, PTAD, who said the harmonisation takes effect from May 2026 following the approval of President Bola Ahmed Tinubu under the 2026 pension budget framework.
PTAD described the policy as a major milestone in pension administration, noting that it aligns with the President’s Renewed Hope Agenda and reflects the Federal Government’s commitment to fairness, social justice and improved welfare for retirees.
Executive Secretary of PTAD, Tolulope Odunaiya, said the intervention would help create a more equitable pension structure while restoring confidence in the management of the Defined Benefit Scheme.
According to her, the harmonisation addresses structural imbalances that had persisted for years, particularly among pensioners who retired at different times but held similar ranks, grade levels and years of service.
Before the policy was introduced, pensions were calculated based on the salary structure in place at the time an officer retired. Under the new arrangement, however, pensions will be computed using the last approved salary structure at the cut-off date for the Defined Benefit Scheme, ensuring that pensioners with comparable service records receive equitable benefits regardless of their retirement dates.
PTAD explained that beneficiaries include Pure Federal Pensioners whose obligations are fully borne by the Federal Government, as well as eligible State and Federal Share Pensioners under the Parastatals Pension Department, Defunct and Transferred Agencies Pension Department, and the Tertiary Education and Health Pension Department.
The directorate also clarified that pensioners whose benefits were previously calculated using outdated salary structures would now benefit from the harmonisation exercise.
Odunaiya reaffirmed PTAD’s commitment to improving the welfare of pensioners through sustained engagement with relevant government agencies, stressing that the directorate would continue to pursue reforms aimed at enhancing the wellbeing of retirees across the country.
She described the implementation as a significant step towards recognising the contributions of retired public servants and ensuring greater fairness in the distribution of pension benefits.
