The Pension Transitional Arrangement Directorate (PTAD) has paid an additional nine months of consequential adjustment arrears to defined benefit scheme (DBS) retirees as a result of the new 2019 minimum wage.
Gbenga Ajayi, PTAD’s spokesperson, made the announcement on Tuesday in Abuja on behalf of Chioma Ejikeme, PTAD’s executive secretary. The DBS was Nigeria’s pension program until 2007 when it was replaced by the contributory pension scheme (CPD), as defined in the Pension Reform Act (PFA) 2004 and 2014.
In contrast to the CPS, where the accrued pension at retirement is based on a pension plan in which an employer/employee contributes in varying percentages to construct a retirement fund for an individual, the DBS bears the complete pension liability.
According to PTAD, civil service pensioners received a nine-month arrears payment, while parastatals, police, customs, immigration, and prisons pensioners received a six-month arrears payment. This brings the total arrears paid to 18 out of the 24 months of pension increase arrears.
According to the statement, in May, the directorate completed the consequential adjustment on pensions as a result of the 2019 minimum wage hike and began payment of arrears to operational department pensioners as instructed by President Muhammadu Buhari.
Source: The Cable