The Pension Transitional Arrangement Directorate (PTAD) has announced the implementation of pension harmonisation for eligible pensioners under Defined Benefit Scheme (DBS), marking what the agency described as a landmark step toward equity and fairness in the administration of retirement benefits in Nigeria.
The policy, which takes effect from May 2026, was made possible following President Bola Tinubu’s approval in August 2025 of the proposed harmonisation framework, as part of PTAD’s 2026 pension budget.
The directorate, in a statement by its Head, Corporate Communications, Olugbenga Ajayi, said the move aligns with the President’s Renewed Hope Agenda and reflects the Federal Government’s commitment to social justice and the welfare of retirees.
Speaking on the development, the PTAD’s Executive Secretary, Tolulope Odunaiya, described the intervention as a significant step toward restoring confidence in the DBS.
She said it also demonstrated the administration’s resolve to identify structural inequalities and implement corrective measures that properly recognise the contributions of retirees.
Prior to the harmonisation, pensions were computed for all Pensioners based on the salary structure applicable at the time of their individual retirement from Service.
However, with the pension harmonisation, 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 Pure Federal Pensioners, whose entire DBS pension obligation falls under Federal Government’s purview, State and Federal Share Pensioners under Parastatals Pension Department (PaPD), Defunct and Transferred Agencies Pension Department (DTAPD), and Tertiary Education and Health Pension Department (TEHPD) who initially served with the Federal Government and subsequently transferred to State Government MDAs, and Pensioners on earlier salary structures whose pensions were hitherto calculated on salary structures predating the final approved Salary Structure.
The ES, PTAD further reassures DBS Pensioners of the Directorate’s unwavering commitment to prioritizing their welfare through continuous collaboration with relevant Government Agencies to enhance their overall well-being, in line with the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, GCFR, and the administration’s steadfast dedication to the welfare and social justice of DBS Pensioners.
