Barbara Bako, Abuja.
The Federal Government has commenced the implementation of a long-awaited pension harmonisation policy for eligible retirees under the Defined Benefit Scheme (DBS), a move expected to address longstanding disparities in pension payments and improve equity among pensioners.
The Pension Transitional Arrangement Directorate (PTAD) announced that the harmonisation took effect in May 2026, following approval by President Bola Tinubu as part of provisions captured in the 2026 pension budget.
The policy is designed to correct structural imbalances that have resulted in pensioners of the same rank and years of service receiving different benefits simply because they retired at different times.
Under the previous arrangement, pensions were calculated based on the salary structure in place at the time an employee retired.
However, the new framework aligns pension computations with the last approved salary structure applicable before the Defined Benefit Scheme was closed, ensuring greater uniformity in benefits among retirees with similar career profiles.
PTAD’s Executive Secretary, Tolulope Odunaiya, described the development as a significant milestone in the administration of pensions under the scheme.
According to her, the intervention would promote fairness, strengthen confidence in the pension system, and provide relief to affected retirees.
She noted that the reform reflects the Federal Government’s commitment to addressing structural inequities within the pension system while recognising the contributions of retired public servants.
The harmonisation covers Pure Federal Pensioners whose pension liabilities are fully borne by the Federal Government.
It also extends to 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.
In addition, pensioners whose benefits were previously calculated using older salary structures are expected to benefit from the review.
PTAD said the implementation aligns with the Tinubu administration’s broader agenda of strengthening social welfare programmes and improving the living conditions of retirees.
The Directorate also reaffirmed its commitment to working with relevant government institutions to enhance pension administration and ensure the welfare of pensioners across the country.
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